The Firm Fixed Myth
In November of last year, I prepared a blog article about a specific clause that started appearing in firm-fixed-price contracts with various agencies which allowed them to reduce the price paid to the contractor based upon any absence, regardless of how short or the reason for the absence. Since that time, we have been assisting more and more clients in situations where the government is demanding discounts or refunds on firm-fixed-price contracts. Given this fact I believe it would be . . . Read More
GAO Finds NIH Failed to Refer SDVOSB Offeror’s Capability to SBA
In a recently published GAO decision , GAO sustained a SDVOSB’s protest of its exclusion from the competitive range by NIH under the CIO-SP3 SB GWAC procurement. The CIO-SP3 SB RFP required an evaluation of proposals in two phases. NIH evaluated offerors in Phase 1 under four “Go/No-Go” requirements, including factor 2, management approach, subfactor 1, domain-specific capability in a health-related mission. NIH found the protester’s proposal unacceptable under this factor/subfactor because the protester’s proposal was “not sufficient to demonstrate inherent capabilities . . . Read More
Earn-Outs in M&A Transactions: Red Flag Issues that Government Contractors Should Avoid
By Michael A. de Gennaro Government contractors who wish to grow by purchasing an existing business are aware of one simple truth: The value of the target is linked directly to its ability to transfer its existing contracts. If there is a high risk profile—for example, if assets of the target are subject to novation in connection with the acquisition—then a purchaser is likely to seek either a downward adjustment in the purchase price or to propose deferred compensation, such . . . Read More
Understanding Government Contract Terminations
It is important for prime contractors to understand what it means if its contract with the Federal Government is terminated and what rights and obligations it has. Nearly every Government contract contains a clause allowing the Government to terminate a contract either for convenience or for default (also known as for cause). The Government may terminate your contract, or a portion of your contract, for convenience when it is in the Government’s interest. Essentially, this means that the Government has made . . . Read More
Get a Handle on Changing Leave Laws
Picking up work across states can be challenging for any employer, particularly with respect to employment law, and it’s not getting any easier. Recently, a number of states and localities are proposing and passing sick and family leave laws, each with differences, making it challenging for employers to comply with and pay for the additional benefit. States are motivated by the federal government’s failure to address paid sick and family leave broadly at the federal level. As a result, states . . . Read More
Government Asking for More Transparency on Federal Contracts Over 150K
By Dana Livne and John Shoraka For years the federal government has attempted to increase transparency in the federal marketplace and last month, U.S. Senators Claire McCaskill (D-MO) and Jon Tester (D-MT) introduced a bill that would require the posting online of the exact details of all government contracts worth $150,000 or more. The bill, “Contractor Accountability and Transparency Act of 2017”, seeks to implement a “machine-readable, searchable copy of each covered contract entered into by a Federal agency”. If the . . . Read More
What Every Contractor Should Know About Requests for Equitable Adjustment
By Michelle Litteken Government contractors quickly learn to expect the unexpected. While working on a construction contract, a contractor may encounter undisclosed utility lines 15 feet underground. Or, an information technology support contractor may be asked to comply with heightened security requirements without being given a contract modification. These changes increase the cost of performance and can put a small business in a precarious position. In situations like this, many contractors file a request for equitable adjustment (“REA”), seeking additional . . . Read More
CVE Extends Verification Eligibility Period: What This Means for VOSBs
Last week, the Department of Veterans Affairs (“VA”) final rule extending the eligibility period for participation in the VA VetBiz Vendor Information Pages (“VIP”) Program took effect. The final rule extends the verification eligibility period from two to three years. For those service-disabled-veteran-owned small businesses and veteran-owned small businesses (“VOSBs”) wondering what they need to do to take advantage of an additional 12 months of eligibility, the answer is nothing. All VOSBs listed in the VIP database as of March . . . Read More
Congress Overturns Fair Pay Safe Workplaces: GOP Deregulation Continues
Government contractors concerned over the potential impact of President Obama’s 2014 Executive Order 13673 “Fair Pay and Safe Workplaces” (EO) can breathe a sigh of relief. On March 6, 2017, the US Senate narrowly approved House Joint Resolution 37 (H.J. Res. 37), which overturns the EO in its entirety. All that remains now is for President Trump to sign the resolution into law, and with the stroke of a pen, years of debate and vitriol over the costs and constitutionality . . . Read More
The Weekly Update for November 4, 2016
DEPARTMENT OF DEFENSE Withholding of Unclassified Technical Data and Technology from Public Disclosure The Department of Defense (“DOD”) Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics has proposed a rule that establishes policy, assigns responsibilities, and prescribes procedures for the dissemination and withholding of certain unclassified technical data and technology subject to the International Traffic in Arms Regulations and Export Administration Regulations. It applies to DOD components, their contractors and grantees, and is meant to control . . . Read More