Labor & Employment Scoop! Important Takeaways for Government Contractors from NILG 2022
In this blog, PilieroMazza ’s Labor & Employment attorney Sara Nasseri summarizes important takeaways for government contractors from the National Industry Liaison Group (NILG) Conference in July, which focuses on developments and updates surrounding EEO, affirmative action, HR compliance and diversity and inclusion issues. Described below are key priority items for the OFCCP and the EEOC, as well as updates to state laws impacting government contractors in 2022 and beyond. Also, please visit this link to register for PilieroMazza’s upcoming webinar detailing these changes and how to . . . Read More
New SBA Rule Enhances Past Performance Opportunities for Small Businesses
On August 22, 2022, the U.S. Small Business Administration (SBA) will implement a final rule that provides two new methods by which small businesses can obtain past performance credit when competing for federal prime contracts. First, the rule allows certain small business offerors to rely on the past performance of joint ventures (JV) in which they were a member. Second, the rule establishes a process by which certain small businesses can request, obtain, and rely upon past performance obtained when performing as a . . . Read More
Transitioning from DUNS to UEI: Elevating Government Contract Service Tickets and Sharing Your Questions
As government contractors are all too aware, the transition from DUNS numbers to the SAM assigned Unique Entity Identifier (UEI) is causing a myriad of problems, which are jeopardizing contractor payments, awards, and ability to bid on opportunities. Since the April 4, 2022, implementation of the SAM assigned UEI and entity validation through SAM, PilieroMazza is seeing a wide range of SAM registration and renewal issues resulting in numerous entities’ SAM registrations expiring and new joint ventures unable to register . . . Read More
Recent Decision May Result in Significant Increase in Personnel Costs and Back Wage Liability for Companies Doing Work in Maryland
On July 13, 2022, Maryland’s highest court issued a wide-reaching decision in Amaya v. DGS Construction, LLC that could have a substantial impact on personnel costs for companies doing business in Maryland. The unanimous ruling opened the door for employees to seek payment of wages for time spent waiting at a jobsite and/or traveling to and from a client work site under certain circumstances. Although Amaya involved construction employees, the decision is very likely to touch many companies operating in Maryland and will likely have . . . Read More
Government Contractor to Pay $9 Million to Resolve FCA Allegations of Cybersecurity Violations
On July 8, 2022, the Department of Justice announced that Aerojet Rocketdyne Inc.—a government contractor providing propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Department of Defense, NASA, and other federal agencies—agreed to pay $9 Million to resolve allegations that the company violated the False Claims Act by misrepresenting its compliance with cybersecurity requirements in certain federal government contracts. This is one of the first documented cases (which PilieroMazza attorneys discussed in a . . . Read More
House Passes Bill Increasing Importance of Subcontracting Plan Performance as an Evaluation Factor
On June 8, 2022, the U.S. House of Representatives passed a bill, referred to as H.R. 7694, “Strengthening Subcontracting for Small Businesses Act of 2022” (the Bill). The Bill seeks to amend the Small Business Act by requiring federal agencies to more broadly consider the content of subcontracting plans and subcontracting plan performance when evaluating large businesses for federal contracts. If enacted, the Bill should encourage large businesses to subcontract more work to small businesses and to achieve their small . . . Read More
SBA Extends Bona Fide Place of Business Moratorium
Last August, PilieroMazza reported that Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, announced that SBA will be suspending the bona fide place of business requirement for 8(a) construction contracts, effective immediately. While the Small Business Act requires that, to the “maximum extent practicable, construction subcontracts awarded by the Administration pursuant to this subsection shall be awarded within the county or state where the work is to be performed,” in light of the COVID-19 pandemic, it . . . Read More
5 Key Ways a Contractor Can Be Subject to a Government Claim
The performance of any government contract by a contractor has the potential to bring certain monetary risks of a government claim against the contractor. Below, we discuss 5 key ways a government contractor can be subject to a government claim and best practices to reduce your risks. 1. Overpayment A common type of government claim is based upon what the government considers to be an overpayment on its part. For example, an agency might have paid an invoice where the . . . Read More
Small Business Set Asides Now Allowed Outside the U.S.: What You Need to Know
Effective May 26, 2022, the Federal Acquisition Regulation (FAR) gives contracting officers the discretion to apply the Small Business Act (Act)—implemented by FAR Part 19—outside the United States and its outlying areas. This final rule (Rule) could create significant business opportunities for small business government contractors capable of competing for overseas procurements. By way of background, the Small Business Administration (SBA) has consistently taken the position that the Act is not geographically limited and, as a result, FAR Part 19, should . . . Read More
New Virginia Law Prohibits “Pay-When-Paid” and “Pay-If-Paid” Provisions in Construction Contracts
Construction contracts routinely set payment terms as “pay-when-paid” or “pay-if-paid.” These terms protect the prime contractor from bearing all the risk of nonpayment by the owner. In Virginia, however, that will not be true for much longer. Last month, Virginia lawmakers passed Senate Bill 550, which makes “pay-when-paid” and “pay-if-paid” clauses unenforceable in most circumstances. Specifically, the new law applies to both public construction contracts and certain private construction contracts that involve at least one general contractor and one subcontractor. . . . Read More