Recent Maryland Case Is a Reminder to Employers to Review the Language of Their Offer Letters, Employment Contracts, and Employee Manuals
The vast majority of states are at-will employment states, which means that an employer may terminate an employee for a good reason, a bad reason, or any reason at all, so long as the basis for termination does not violate a statute or public policy of the state. In Maryland, Virginia, the District of Columbia, and a number of other states, an employment relationship is strongly presumed to be at-will. Thus, even when the employee signed an employment contract, so . . . Read More
Seller Beware: 5 Tips to Keep Bad Employment Practices from Holding Up a Sale
Lawsuits and existing labor disputes are obvious impediments to the sale of your business. But short of these red flags, any number of ill-advised practices may slow down or even stop an acquisition from proceeding. Do not enter into serious talks about the sale of your company without first identifying and correcting poor employment practices. Follow these tips to avoid future headaches. 1. Ensure Employees Are Properly Classified The Fair Labor Standards Act (“FLSA”) requires that non-exempt employees receive . . . Read More
You’ve Decided to Sell Your Business— How to Be Prepared to Execute the Deal
After years of building, growing, and investing in your business, there comes a point at which you start to think about an exit strategy. Perhaps your exit will be transitioning the ownership of your business to a family member or selling the majority of your ownership interest to an investor and taking a back seat going forward, or maybe it’s selling the whole business enterprise. Regardless of the type of exit you contemplate, selling a business is not for the . . . Read More
Growing Pains: Growth Capital Sources and Considerations Part 1: Debt Financing
At a certain point in a company’s life cycle, founders are likely to be faced with the financial pinch of requiring outside sources of funding to finance further growth and expansion of the business. Once bootstrapping ceases to be an option, there are two main avenues to pursue for growth capital: traditional bank debt or private equity investment. Both options present pros and cons, and they are not mutually exclusive. Ultimately, the route founders decide upon will depend on the . . . Read More
Three Indicators You Need an OCI Mitigation Plan
The risk of an organizational conflict of interest (“OCI”)—either perceived or actual—strikes fear in the heart of many a government contractor. An OCI may result in disqualification from a procurement, an adverse bid protest decision, or termination of a contract. Although that can be unnerving, in many cases, an OCI is mitigatable if the contractor implements measures to avoid, neutralize, or mitigate the conflict. At the same time, it is critical to implement a mitigation plan early on. For this . . . Read More
Big Changes Are Coming for SBA’s HUBZone Program
For the first time in 20 years, SBA is proposing an extensive overhaul of its regulations for the HUBZone program. SBA recognizes the difficulty firms face getting into and staying in the HUBZone program, so they are revising the HUBZone rules to provide greater certainty to HUBZone applicants and participants. The proposed rule would reduce the regulatory burdens imposed on HUBZone small business concerns and on government agencies by eliminating ambiguities in the regulations and making it easier for HUBZone . . . Read More
Federal Circuit Confirms That VA Rule of Two Analysis Is Required for All Types of VA Procurements
Last year, I wrote about a decision of the U.S. Court of Federal Claims (“COFC”) in which it held that the U.S. Department of Veterans Affairs (“VA”) must perform a “Rule of Two” analysis to determine whether at least two veteran-owned small businesses (“VOSB”) are capable of performing the work at issue before procuring the work through a non-VOSB set-aside solicitation, including through the AbilityOne Program. That case, PDS Consultants, Inc. v. United States, was appealed by VA and the awardee of . . . Read More
The Climb to Enforce Your Teaming Agreement in Virginia Has Gotten Steeper
A few years ago, we wrote about the likely effect of a case commonly called “Cyberlock” on teaming agreement enforceability in Virginia. Cyberlock Consulting, Inc. v. Info. Experts, Inc., 939 F. Supp. 2d 572, 580 (E.D. Va. 2013), aff’d, 549 F. App’x 211 (4th Cir. 2014). While decided in the U.S. District Court for the Eastern District of Virginia, Cyberlock looked to Virginia state court precedent for its conclusions on the enforceability of the teaming agreement at issue. As we noted at the time, the Cyberlock court . . . Read More
Submitting a Proposal Soon? Make Sure Your SAM Registration Is Active
While there has been some confusion and a bit of a grey area surrounding when an offeror’s profile with the System for Award Management (SAM) must be active, the confusion will be put to rest effective October 26, 2018. Recently, a final rule was released clarifying that offeror registration in SAM is required prior to submission of an offer. Currently, FAR 4.1102(a) requires contractors to be registered in SAM “prior to award of a contract or agreement,” with some narrow exceptions. While this seems . . . Read More
809 Panel Seemingly Switches Focus of Protest Recommendations
As we noted in our May 2, 2018, post on the possible 809 Panel recommendations for bid protests, the Panel was planning to make radical changes to the bid protest process at DOD, which would lead to less oversight and accountability, opening the floodgates for fraud and abuse by government personnel. However, we recently learned that the Panel may be thinking of taking action that could benefit DOD’s buying processes, without reducing public oversight, by looking at more inward-facing policy changes . . . Read More