DOD Receives Section 889 Waiver from Director of National Intelligence

On August 12, 2020, Director of National Intelligence John Ratcliffe issued a memorandum to the Department of Defense (DOD) that waives DOD’s requirements under Section 889 of the National Defense Authorization Act for Fiscal Year 2019. The Federal Register published an interim rule on July 14, 2020, that implemented Section 889, which prohibits agencies from procuring telecommunications equipment and services from Huawei Technologies Company, Hangzhou Hikvision Digital Technology Company, Hytera Communications Company, Dahua Technology Company, and ZTE Corporation. The DOD originally released a . . . Read More

Prohibitions on Use of Some Chinese Telecommunications Equipment by Government Contractors Effective August 13, 2020

Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019—prohibiting government agencies and government contractors they work with from using certain covered telecommunications equipment or services from China—goes into effect on August 13, 2020. The FAR Council issued an interim rule implementing Section 889(a)(1)(B) by making a number of changes to 48 CFR Parts 1, 4, 13, 39, and 52. While the interim rule will be effective as of August 13, comments to the . . . Read More

BLOG: 10 Questions to Ask for a Successful Government Contracts Novation

Government contractor acquisitions present unique regulatory hurdles, and one major challenge is the preparation, submission, and execution of a novation package with the U.S. government. While the novation package itself is a hurdle, there are additional factors that impact its success. Below are ten questions government contractors should ask, which can spell the difference between a successful and unsuccessful novation. Novation Package Documentation Novation is required for the transfer or assignment of a federal government contract from one entity to . . . Read More

BLOG: Stockholders and Board Directors: Overview of COVID-Related Changes to Title 8 of Delaware General Corporation Law

On July 16, 2020, Governor John Carney of Delaware signed into law House Bill 341 to amend Title 8 of the Delaware General Corporation Law (DGCL) which, among other things, (1) solidifies a pandemic as an emergency situation, (2) expands the special powers of stockholders and directors during such emergency conditions, and (3) allows for the option to use electronic transmission documentation and electronic signatures for the execution of documents (previously limited to hardcopy and manual execution only).  While DGCL § 110(a) already . . . Read More

BLOG: Investing in or Acquiring a Medical Provider? Costs of Improperly Reporting Medicare Changes in Ownership (CHOW)

When an investor desires to invest in or acquire a medical provider, the investor must understand how the transaction may affect the provider’s Medicare enrollment. Depending on the structure of the transaction, the provider must report certain changes in the provider’s ownership to the Centers for Medicare & Medicaid Services (“CMS”). Compliance with CMS’s notification requirements permits the provider to continue participating in the Medicare program under its provider agreement with minimal, if any, delays or issues. However, if the . . . Read More

BLOG: CMMC Heads to the STARS: Important Cybersecurity Provisions in GSA’s 8(a) STARS III RFP

One of the hottest topics for government contractors is the General Services Administration’s (GSA) recent release of the updated 8(a) STARS III request for proposal (RFP). With proposals due by August 19, 2020, many contractors are knee deep in preparing responses to this critical multiple-award RFP. The RFP includes provisions to address the Department of Defense’s (DOD) upcoming Cybersecurity Maturity Model Certification (CMMC). CMMC has not even gotten off the ground yet for DOD, but is included in the 8(a) . . . Read More

BLOG: New DOL Rule Frees TRICARE Providers from OFCCP Audits and Enforcement

On July 2, 2020, the Department of Labor (DOL) published a final rule , which clarifies that its Office of Federal Contract Compliance Programs (OFCCP) lacks authority over certain medical providers who contract with TRICARE. While there has been a moratorium on OFCCP enforcement for TRICARE providers since 2014, the potential for future OFCCP audits and related litigation loomed large. This rule relieves healthcare providers who solely contract with the federal government through TRICARE from future OFCCP audits and enforcement. OFCCP enforces Executive . . . Read More

BLOG: COVID-19 Is Spiking More Than Just Fevers: 5 Things to Remember with Union Organizing on the Rise

As unemployment rises and companies face new COVID-19 health and safety challenges, many unions are exploring new ways to encourage employees to organize. In this climate of union organizing, it can be important to keep open communications with your workforce. Often, the best way to avoid a union organizing campaign is to listen to employee concerns as they arise and keep a watchful eye on signs that employees might be considering organizing, providing you an opportunity to get out in . . . Read More

BLOG: $4.5 Million False Claims Act Settlement Underscores DOJ’s Focus on Fraud in Small Business Programs

During the webinar on “ The False Claims Act: 2019 Takeaways and 2020 Trends ” earlier this year, Matt Feinberg and Jackie Unger noted that the SBA’s small business programs are fertile ground for False Claims Act (FCA) enforcement and predicted increased enforcement in 2020 and beyond. A recent settlement has shown this to be true and illustrates that the risk of FCA liability can extend to affiliates and business partners of purported small businesses that contract with the federal government. On May 4, 2020, the DOJ issued a press release stating that Northland Associates, . . . Read More

BLOG: New Judicial Order Offers Clarity on Maryland Statutes of Limitations Impacted by COVID-19

Early during the COVID-19 pandemic, a number of state-level court systems, including Maryland’s courts, declared judicial emergencies and issued orders automatically tolling, or postponing, the expiration of statutes of limitations [1] for claims filed within those states. These orders offered plaintiffs a reprieve from the strict filing deadlines. Now, as Maryland begins the process of reopening its court systems to the public, the state’s highest court has issued an order offering clarity as to the new filing deadlines for the expiration of . . . Read More