SBA Adjusts Economic Disadvantage Thresholds for 8(a) and EDWOSB Programs and Monetary-Based Size Standards

Per an interim final rule published on November 17, 2022, the Small Business Administration (SBA) is adjusting the three economic disadvantage thresholds applicable to the 8(a) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs for inflation. SBA’s interim final rule will also increase its receipts-based small business size standards. These changes will be effective on December 19, 2022. SBA’s changes should be welcomed by small businesses and participants in the 8(a) and EDWOSB programs and those looking to apply. Economic Disadvantage Thresholds for . . . Read More

Act Fast: ESOP-Owned Defense Contractors Eligible for Sole-Source Awards in New DOD Pilot Program

The Department of Defense (DOD) recently launched a pilot program allowing Contracting Officers (CO) to award sole-source follow-on contracts to contractors owned 100% by an employee stock ownership plan (ESOP). Although sole-source awards already exist for specific types of small businesses, this program marks the first time that the government authorized a set-aside program for ESOPs. Like most pilot programs, however, the ESOP set-aside program is limited, with strict eligibility criteria and only nine contracts available. Considering these limitations, ESOPs interested in participating in . . . Read More

Biden Proposes Emissions Reduction and Reporting Standards for Federal Contractors

The Biden-Harris Administration recently published a proposed rule on Federal Supplier Climate Risks and Resilience (Proposed Rule). The Proposed Rule intends to further the goals set forth in Biden’s Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (E.O. 14057) and to reduce the financial risks faced by the federal government from climate change-related supply chain disruptions. The Proposed Rule would set standards on emissions reporting, climate-related financial risk disclosure, and emissions reduction targets for federal contractors and subcontractors. Primarily, the Proposed Rule would require major suppliers to establish Paris Agreement-aligned emissions reduction goals. The . . . Read More

U.S. Treasury Issues Guidance on CFIUS Enforcement and Penalties

On October 20, 2022, the U.S. Department of the Treasury (Treasury) released the Committee on Foreign Investment in the United States (CFIUS or the Committee) Enforcement and Penalty Guidelines (the Guidelines ). The Guidelines describe (1) three categories of conduct that may constitute as CFIUS violations, (2) the Committee’s process for imposing penalties, and (3) factors the Committee considers when determining whether a penalty is warranted and the scope of such penalty. Since this is the first time the Treasury released . . . Read More

Prohibition on Use or Delivery of Chinese Telecommunications and Video Surveillance Products and Services: The Potential Link Between Section 889 of the 2019 NDAA and Section 1260H of the 2021 NDAA

Over the past few days, PilieroMazza received a number of inquiries related to our recent posting entitled DOD Releases New List of Section 889 Banned Entities . In that post, we discussed how DOD recently released a new list of entities determined by DOD to be deemed “Chinese Military Companies.” This release was not made under Section 889 of the 2019 NDAA but instead under Section 1260H of the 2021 National Defense Authorization Act (NDAA). This caused confusion related to the potential intersection of the two laws and whether one . . . Read More

SBA Proposes Revisions to Ownership and Control Requirements for the 8(a) Business Development Program

As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, primarily those that are participants in the 8(a) Business Development Program. PilieroMazza has posted a series of blogs regarding SBA’s proposed rulemaking, and this client alert highlights some of the proposed changes that pertain specifically to the 8(a) Program. Ownership and Control As you may be aware, there are certain ownership restrictions on an 8(a) firm. One of the restrictions . . . Read More

Potential Changes on the Horizon for DOT’s Disadvantaged Business Enterprise Program

The Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) Program is in the midst of a major overhaul that would update, streamline, and clarify existing rules, strengthen implementation, and increase reporting requirements. The DOT’s DBE Program allows small businesses owned by socially and economically disadvantaged individuals to tap into billions of dollars’ worth of contracting opportunities issued at the state and local level through federally-funded infrastructure projects. On July 21, 2022, DOT issued a notice of proposed rulemaking (Rule) which presents the biggest potential . . . Read More

Overcoming the Inflation Crisis: The Ins-and-Outs of Extraordinary Contractual Relief for Government Contractors

An all-but-forgotten remedy in government contracting, Extraordinary Contractual Relief (ECR) , is in the midst of a potential resurgence due to the Department of Defense’s (DOD) most recent memorandum on inflation entitled Managing the Effects of Inflation with Existing ContractsAs PilieroMazza previously discussed , the current inflation crisis prompted DOD to suggest that, subject to the availability of funds, contractors should seek ECR when seeking an upward adjustment to the price of an existing firm-fixed-price contract. If you are a government contractor impacted by inflation while performing a contract, see below for the ins‑and‑outs . . . Read More

DOD Releases New List of Section 889 Banned Entities

On October 5, 2022, the Department of Defense (DOD), in compliance with Section 889 of the National Defense Authorization Act for Fiscal Year 2019, released an updated list (Blacklist) of banned People’s Republic of China (China) military companies. PilieroMazza recently wrote about Part B of Section 889 taking full effect for DOD contractors on October 1, 2022. Section 889 is a broad prohibition to the use of any covered Chinese technology posing a threat to U.S. cybersecurity and national security. Section 889 . . . 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