Subcontract Flow-Down Provisions: Constructive Acceleration and Delays on Federal Projects
A contractor’s claims against the government for constructive acceleration and delays are governed, in part, by the applicable clauses of the Federal Acquisition Regulations (FAR) incorporated into its contract with the government. Whereas a subcontractor’s claims against a contractor for constructive acceleration and delays are governed, in part, by which FAR clauses are incorporated into its subcontract. Prime contractors and subcontractors on federal projects should be aware of the importance of understanding flow-down provisions in subcontracts and how they can . . . Read More
Inter-Con Security Systems: Significance of CBCA’s Decision on Government Contractors
On September 29, 2023, the Civilian Board of Contract Appeals (CBCA) ruled that a federal contractor could not collect damages from the U.S. Marshals Service (USMS). The contractor’s claim, asserting that it was being sued by former employees as a result of government action, was rejected by the CBCA. The CBCA’s decision in Inter-Con Security Systems, Inc. v. U.S. Dept. of Justice, CBCA No. 6995, suggests that when government action is justified by contract language, a lawsuit filed by a former . . . Read More
Protecting Our Nation’s Data, Part 3: Are Goods or Services Subject to FASCSA Orders?
Substantive cybersecurity amendments to the Federal Acquisition Regulation (FAR) are underway, significantly altering the duties and obligations of federal government contractors both prior to award and during contract performance. The FAR Council issued an Interim Final Rule implementing Section 202 of the Federal Acquisition Supply Chain Security Act of 2018 (FASCSA) [1] , as well as a 2021 Final Rule ( Final Rule ) granting the Federal Acquisition Security Council (FASC) authority to issue orders excluding or removing goods or services from the supply chain that . . . Read More
Protecting Our Nation’s Data, Part 2: Implementing Cyber Threat Incident Reporting and Information Sharing
In October 2023, the federal government released a Proposed Rule aimed at incorporating new cybersecurity reporting requirements into the Federal Acquisition Regulation (FAR). In this second installment of PilieroMazza’s blog series “Protecting Our Nation’s Data,” we discuss the Proposed Rule which seeks to implement Executive Order 14028 (EO 14028) and increase the exchange of information between contractors and the government regarding cyber threats and incident reporting. As the government continues to roll out new cybersecurity requirements, government contractors should understand these requirements, how they could . . . Read More
Protecting Our Nation’s Data, Part 1: Cybersecurity Standardization Requirements for Unclassified Federal Information Systems
New standardized cybersecurity compliance requirements are inbound. In early October 2023, the Federal Acquisition Regulation (FAR) Council issued a proposed rule ( Proposed Rule ) to standardize cybersecurity requirements across federal agencies for unclassified Federal Information Systems (FIS). This blog, the first in a series, addresses why government contractors should familiarize themselves with these requirements as non-compliance could affect contract eligibility and payment, as well as exposure to False Claims Act (FCA) liability. [1] Contractual cybersecurity requirements for unclassified FIS are currently . . . Read More
SBA and ISOO Issue Guidance on Facility Security Clearances for Joint Ventures
On October 5, 2023, the Information Security Oversight Office (ISOO) and the Small Business Administration (SBA) released a Joint Notice that provides guidance on the facility security clearance (FCL) requirements for joint ventures (JVs). Government contractors participating in JVs to pursue classified work should be aware of FCL requirements for each member of the joint venture. As outlined in a prior blog post, historically, there has been confusion as to whether a JV can rely on the FCLs of its members. Some of . . . Read More
New Developments in Ultima Case: Potential Effect on Current and Future SBA 8(a) Program Participants
On September 15, 2023, Ultima Services (Ultima) filed a motion in the U.S. District Court for the Eastern District of Tennessee seeking additional equitable relief in its suit challenging the constitutionality of the Small Business Administration’s (SBA) 8(a) Business Development Program (8(a) program). [1] Ultima’s motion comes after the SBA’s recent suspension of new applications to its 8(a) program to comply with U.S. District Court Judge Corker’s July 19, 2023, decision. 8(a) contractors should be aware of these developments as the court’s . . . Read More
SBA Tightens Enforcement of HUBZone Regulations
Government contractors maintaining or seeking HUBZone certification should make themselves aware of the Small Business Administration’s (SBA) recent efforts to tighten and enforce new and existing rules surrounding the HUBZone program. In this client alert, PilieroMazza details the SBA’s enforcement efforts and the major implications for HUBZone contractors who do not comply with program requirements. On September 20, 2023, the SBA issued a press release announcing its plan to strengthen enforcement of HUBZone regulations. The press release, titled “U.S. Small Business Administration Acts . . . Read More
Your Turn: New Rule Allows Government Contractors to Rate the Government
Contractors get feedback from the government all the time. It’s a much rarer occasion when contractors are afforded the opportunity to give the government feedback. The Federal Acquisition Regulation Council (FAR Council) is looking to change that with FAR 52.201-1, Acquisition 360 (Acquisition 360 or final rule). In this blog, PilieroMazza examines implementation of Acquisition 360, as well as potential impacts on the procurement process for government contractors. Background Initially proposed by the FAR Council in 2020, this final rule takes effect on September 22, . . . Read More
Reducing the Negative Impacts of a Government Shutdown for Federal Contractors
Once again, the specter of a government shutdown looms over the federal contracting community. The federal government is set to run out of funding on September 30 and tensions in the House are making it ever more likely that a shutdown will occur. Below are key steps your business should take to mitigate the possible negative impact of a government shutdown, along with shutdown-related labor and employment considerations for government contractors. A. Mitigating Damages Understand the likely consequences of a . . . Read More