Government Contracts

BLOG: The Big Miss: When Job Misclassification Strikes Hard

August 23, 2019
By Nichole D. Atallah
Everywhere you look companies are being hit hard with claims of misclassification of workers under labor regulations. So far in August 2019, Department of Labor (DOL) has announced over $2 Million in damages paid to employees, and this doesn't even include voluntary settlements handled outside of DOL. In fact, General Dynamics was recently hit with a $170,000 settlement regarding claims that the company misclassified call center workers under the Service Contract Act (SCA). To avoid such penalties and to remain legally compliant, employers—including government contractors—should seek experienced legal counsel to help them properly classify a position, as well as create a system for future classifications.
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BLOG: Prepare Now to Secure "Controlled Unclassified Information"

August 21, 2019
By Emily J. Rouleau
Nowadays, many people are familiar with at least some types of protected information, whether in the form of personal health information or government-classified information. But, contractors working with the Department of Defense ("DoD") must remember to protect another type of information: controlled unclassified information ("CUI"). Failure by government contractors to put processes in place that protect CUI could result in the loss of contracting opportunities or potential False Claims Act-related litigation.
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BLOG: Why Government Contractors Should Know About the Delaware LLC Division Statute

August 20, 2019
By Kathryn L. Hickey
Relatively often in the government contracting industry a business finds itself in the position where, for one reason or another, it needs to split, fracture, or otherwise reorganize its operations by separating one line of business or division into a separate entity. When prime federal contracts are transferred from one entity to another, it often necessitates a novation agreement with the contracting government agency. Many government contractors discover the novation process to be relatively lengthy and burdensome, with the potential to delay or hinder the ultimate business objectives, and traditional corporate restructurings can be cumbersome and inefficient. The Delaware Limited Liability Company Act (DLLCA) LLC Division Statute provides a potential streamlined path to entity reorganization.
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BLOG: GAO Defers to SBA on When Runway Extension Act Applies

August 20, 2019
By Emily J. Rouleau
Last year, Congress passed—and President Trump signed—the Small Business Runway Extension Act (the "Runway Extension Act" or the "Act"), which changed the time period for determining a company's size based on average annual receipts from the previous three years to the previous five years. This summer, the Small Business Administration ("SBA") finally published its proposed rule to amend its regulations and change the period of measurement for receipts-based size calculations from three years to five years. As my colleague Megan Connor noted in her blog, SBA was slow to implement the change imposed by the Runway Extension Act because it believes the Runway Extension Act amended a section of the Small Business Act that does not apply to SBA. Now, the Government Accountability Office ("GAO") has deferred to SBA's interpretation, days before comments to SBA's proposed rule are due. While GAO's decision may signal that offerors may need to continue to calculate their average annual receipts based on the previous three year, this is an open and developing issue, especially until SBA finalizes a rule implementing the Runway Extension Act.
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BLOG: SCOTUS Strengthens Protections for Federal Government Contractors Under FOIA

August 9, 2019
By Patrick K. Burns
The Freedom of Information Act ("FOIA" or "the Act") provides private citizens access to information in the possession of government agencies that is not otherwise publically available. Unfortunately, an agency's disclosure can potentially include confidential information of a government contractor, such as proposal content, pricing structures, and other proprietary material. Such disclosures are concerning because publically disclosed information can be used by competitors to the great detriment of the contractor. Luckily for contractors, FOIA's power is not unlimited. Indeed, Congress restricted its scope through a series of exemptions that protect certain information from disclosure that can be of use to contractors when a competitor or private party seeks a company's proprietary information that is in the hands of the government.
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