BLOG: Why Government Contractors Should Know About the Delaware LLC Division Statute

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 . . . Read More

BLOG: Trends in Mergers and Acquisitions

Trends in Mergers and Acquisitions“What’s market?” is an important question for the buyer and seller to ask in a merger and acquisition (M&A). Along with counsel from a skilled M&A attorney, having a basic understanding of what terms are typical in the current M&A market will help businesses that are in the market to buy or sell a business (1) better analyze the reasonableness of specific terms offered by the other side and, if an offered term is not typical, . . . Read More

BLOG: How Government Contractors Can Take Advantage of CPARS Trends to Win (and Maintain) Federal Contracts

On July 18, 2019, the Professional Services Council hosted an important event covering Contractor Performance Assessment Reporting System (“CPARS”) trends, their impact on contractor past performance ratings, and the consequence they have on winning federal contracts. As one of the speakers at this event, PilieroMazza’s Samuel Finnerty offered recommendations on what government contractors can do now to proactively engage and manage their CPARS ratings and  position themselves for future growth.    One of the most interesting trends discussed was the sharp decline . . . Read More

BLOG: Department of Defense Sets Course on Cybersecurity Evaluation and Enforcement

On a limited budget, government contractors need to be compliant with a litany of statutes, regulations, and industry standards in order to remain competitive in the marketplace. This has become particularly true in the cybersecurity context.  With no overarching federal law for cybersecurity standards or privacy protection (though the U.S. Senate is in the process of discussing a bipartisan privacy bill as they have done, unsuccessfully, in prior legislative sessions), rulemaking authorities have taken it upon themselves to create industry . . . Read More

BLOG: Impact of California Consumer Privacy Act on Government Contractors and Commercial Businesses

The California Consumer Privacy Act (“CCPA”) will go into effect on January 1, 2020.  Similar to the European Union’s General Data Protection Regulation (“GDPR”), CCPA creates significant compliance challenges for government contractors and commercial businesses doing business in California, with several states following suit.  Under CCPA, fines from the Attorney General for businesses that do not comply could be as high as $7,500 per violation, with CCPA also granting consumers the right to bring private action, exposing companies to actual and . . . Read More

BLOG: Corporate Transactions and Affiliation Pitfalls

As a small business grows and expands, it may have opportunities to bring on new investors, provide equity incentives to obtain, incentivize and retain key employees and directors, and enter into acquisitions and other transactions with other entities. These investments and transactions can support the business’s stability and future growth but may also raise unintended affiliation issues. Because the Small Business Administration (SBA) includes the business’s affiliates when determining its size, pursuing these transactions may affiliate the business with other . . . Read More

BLOG: The Relationship Between Privacy and Trust

Recently, there has been an advertisement running during March Madness from Apple that is all about privacy. If your household has been watching as much college basketball as mine has, then you’ve likely seen it. It’s a minute full of real-world examples of how people value their personal privacy. None of those examples are particularly significant but, in the aggregate, it shows that this remains an issue that people are deeply concerned about. That concern, of course, is then applied . . . Read More

BLOG: New IRS Requirements for EIN Applications Go Into Effect May 13, 2019

As we have all been scrambling to get our taxes completed this month, a new IRS requirement may have been overlooked that goes into effect on May 13, 2019. This new requirement impacts the process by which any new entity (including sole proprietorships, partnerships, limited liability companies, trusts, and corporations) can apply for an Employer Identification Number (EIN), the 9-digit identification number assigned to entities for tax filing and reporting purposes. The new requirements will impact all of our clients engaged . . . Read More

Avoiding Flat Tires When Acquiring IDIQ Contract Vehicles

With proposals costing hundreds of thousands of dollars and many IDIQs having 50 or more awardees, it can easily happen that some contractors who win a spot on a contract are unable to capitalize on it and simply stop trying to capture task orders. Whether it was because the initial win was based on sheer luck or perhaps because of a tragic, unforeseeable change in circumstances, making it impossible to bid or even keep the company doors open, a contractor . . . Read More

Growing Pains: Growth Capital Sources and Considerations Part 2: Private Equity 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. Previously, I posted  an article  that focused on one of the two most common paths that companies turn to for growth capital financing: traditional bank debt. In this post, I will focus on the second of the most common sources of financing—private equity investment. Private equity investments can . . . Read More