PilieroMazza Summarizes SBA’s Final Rule on Mentor-Protégé Programs
Today, SBA issued its final rule making changes to its rules on joint ventures, the mentor protégé program, the Section 8(a) program, and much more. In developing this final rule, SBA reviewed and considered the many comments it received, and PilieroMazza believes that the final rule makes many positive changes that will simplify its procedures for small businesses, particularly 8(a) program participants. Below we summarize major changes in the final rule. If you have questions concerning SBA’s final rule on its Mentor Protégé Programs, . . . Read More
SBA Adopts Critical Rule Change on Small Business Recertification: Tweaking Its “Technical Correction”
As we recently highlighted , on October 16, 2020, the U.S. Small Business Administration (SBA) enacted a final rule (Rule) that merges the 8(a) Business Development Mentor-Protégé Program and the All Small Mentor-Protégé Program and makes a number of other significant changes that impact the small business contracting community. One modifies SBA’s recertification rules and will directly affect a contractor’s ability to pursue options and orders set aside under pre-existing contracts. SBA’s regulations require a concern to recertify its small business size / socio-economic . . . Read More
8 Tips to Manage Risks in Healthcare Transactions
In a typical investment or acquisition, the buyer conducts due diligence of the target company. Due diligence involves extensive review of the target company’s history, finances, and operations, including its contracts, customer and supplier relationships, and employees, to understand the risks and opportunities associated with the investment or acquisition. Healthcare companies have their own unique requirements and structures, so a buyer’s due diligence must consider and thoroughly evaluate these additional factors to mitigate the buyer’s risk post-closing. Professional Corporations and . . . Read More
WOSB Certification Required Beginning October 15 – Are You Ready?
As a reminder, beginning on October 15, 2020, all women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs) pursuing WOSB/EDWOSB set-asides, as well as solicitations with pools reserved for WOSBs/EDWOSBs, must be certified as a WOSB/EDWOSB, either by SBA or a third-party certifier. The application for certification by SBA is free and may be completed at beta.certify.sba.gov. Beginning October 15, if you have not completed the certification application, this will impact your ability to bid on WOSB/EDWOSB set-aside . . . Read More
DOL Publishes Guidance on Diversity Training Executive Order
On September 22, 2020, the Trump administration issued Executive Order 13950 (the Order) prohibiting workplace training that involves “sex stereotyping” or “scapegoating.” The Order is applicable to federal employees, the military, and private entities that receive grants or federal government contracts. While there is much we do not know about the implications of the Order, this client alert examines the U.S. Department of Labor’s (DOL) limited guidance, issued yesterday, which sheds some light on the Order’s requirements and its implications . . . Read More
Emergency Sick Leave Policy: Top 5 Measures to Defend Against a DOL Investigation
Companies across the country are still struggling to understand and implement the emergency sick and family leave imposed by the Families First Coronavirus Response Act (FFCRA). The U.S. Department of Labor’s Wage and Hour Division (DOL), responsible for enforcing the provisions, initially provided a grace period to employers to come into compliance, but that time has passed and DOL is now investigating complaints of noncompliance. By way of example, Nicholas Security Commercial LLC, a Georgia-based home security company, was found . . . Read More
Is Your Arbitration Clause Leaving You Exposed?: 3 Ways to Protect Yourself
Arbitration clauses are included in many commercial contracts, particularly in government subcontracts. We often see arbitration clauses as tools to limit the parties’ exposure to protracted litigation if a dispute arises under the contract. Maryland, among many other state and federal courts, has an extremely strong public policy of favoring the enforcement of arbitration agreements. The Maryland Court of Appeals has explained that the “public policy favoring such agreements is understandable, as arbitration agreements are generally a less expensive and . . . Read More
SBA Issues Guidance for PPP Lenders on Required Consents for Change in Ownership of PPP Borrowers
On Friday, October 2, the U.S. Small Business Administration (SBA) issued guidance for lenders administering loans under the Paycheck Protection Program (PPP) regarding what involvement by the SBA (if any) is required when a PPP borrower undergoes a transaction resulting in a change in ownership. This guidance addresses several questions with which PPP borrowers and lenders have been struggling over the past several weeks and provides clarity around what the expectations are for when SBA consent is required and what . . . Read More
BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: OCI, Reps and Warranties, and Assignment of Receivables Part 2 of a 3-Part Series
Our three-part series on government contractor M&A transactions provides an overview of key regulatory and industry-specific considerations that can impact all aspects of a deal. Part 1 is available here . It covers pre-transaction novation and affiliation issues. In Part 2, we move onto the transaction itself, diving into the potential for organizational conflicts of interest (OCI), regulatory compliance concerns, and the assignment of receivable rights. If ignored, these can impede the achievement of business objectives and lower the value of . . . Read More
BLOG: 5 Things to Know When Protesting an Award
The end-of-fiscal-year spending spike has federal agencies issuing more notices of award, leaving many disappointed offerors keen to file protests. Post-award protests are subject to strict timelines, so you need a plan if you receive an unfavorable notice of award. Below are 5 key things government contractors need to know when protesting an award. Ask yourself whether you have grounds to file a size protest or a bid protest. Generally, the strongest protest grounds pertain to: evaluation that is inconsistent . . . Read More