BLOG: JEDI Update: AWS Files Agency-Level Protest with Pentagon
The ongoing public feud between Microsoft and Amazon Web Services (“AWS”) over the Department of Defense’s (“DOD”) Joint Enterprise Defense Infrastructure (“JEDI”) Cloud contract saw three major developments over the last thirty (30) days. This blog provides an update on the JEDI protest, which has potential implications for the government contracting community. On April 13, 2020, the Pentagon’s watchdog, Office of Inspector General (“OIG”), released a 313-page report on several controversies surrounding the $10 billion JEDI procurement, including allegations of . . . Read More
House Introduces New Legislation Allowing Startups To Access PPP Funding
On May 8, 2020, Congresswomen Anna Enshoo and Cathy McMorris introduced the Caring for Startup Employees Act of 2020 , a bipartisan piece of legislation aimed at granting more economic assistance to startup companies through the Paycheck Protection Program (PPP). Should this bill become law, it would dramatically increase the number of companies eligible for PPP loans. Under current Small Business Administration (SBA) guidance and regulations—specifically the agency’s “affiliation rules”—many startups are unable to receive PPP funds because they do not have a majority shareholder. The Caring for . . . Read More
BLOG: EEOC Delays Collection of EEO-1 Data Due to COVID-19
In light of the public health emergency caused by COVID-19, the Equal Employment Opportunity Commission (EEOC) announced that it will delay collection of EEO-1 Component 1 data until March 2021. Under federal law, businesses with at least 100 employees and federal contractors with at least 50 employees and a federal contract of $50,000 or more generally must file an EEO-1 form each year. This development gives government contractors a one-year extension to file their 2019 Component 1 data. Many employers . . . Read More
New Senate Bill Could Make PPP Expenses Tax Deductible
On May 6, 2020, members of the Senate Finance Committee introduced the Small Business Expenses Protection Act of 2020 (“the Act”), legislation that would allow some small businesses to deduct from their taxes expenses paid with their forgiven Paycheck Protection Program (“PPP”) loan. Should this bill become law, it would greatly modify current regulations surrounding tax-deductible expenses for small businesses. On April 30, 2020, the Internal Revenue Service (“IRS”) issued a notice stating that no tax deduction is allowed for an expense that results in PPP loan forgiveness. . . . Read More
BLOG: FAR Council Rulemaking Error Requires GSA Contractors to Qualify As Small at Time of Award for Certain Orders
As we recently wrote , the FAR Council published a final rule (Rule) on February 27, 2020 that amends the Federal Acquisition Regulation (FAR) to capture regulatory changes made by the Small Business Administration (SBA) in 2013, including those pertaining to size representation/certification. However, in drafting the Rule, the FAR Council made a critical change that not only deviate from SBA regulations, but also run counter to everything we know about when the size status of a contractor is determined. All small . . . Read More
CARES Act and PPP: Important Updates Regarding Loan Forgiveness Calculations and Returns
On May 5, 2020, the Small Business Administration (“SBA”) and U.S. Treasury Department (“Treasury”) revised their FAQ concerning the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Paycheck Protection Program (“PPP”). Of note, this new guidance clarifies PPP loan forgiveness amount calculations and extends the deadline for PPP borrowers to return loan proceeds. According to Question 40 of the FAQ, a PPP loan borrower’s forgiveness amount will not be reduced should the company make a good faith attempt, . . . Read More
BLOG: For Contractors, an REA for Keeping Your People Safe and on the Job
In COVID-19 times, one of the ongoing challenges for contractors is how to obtain upward equitable adjustments for increased operating costs due to the crisis. These costs could include more janitorial services, reconfiguring and/or refurnishing workspaces, changing processes and/or systems, overcoming supply chain fluctuations, enabling more remote work, compartmentalizing work groups, implementing shift work, allotting administrative time for health checks, giving more transportation and parking benefits, providing Personal Protective Equipment (“PPE”), adding headcount made necessary by changes, as well as . . . Read More
$484 Billion Relief Bill Signed Into Law, $310 Billion Allocated to Paycheck Protection Program
H.R. 266 , the Paycheck Protection Program and Health Care Enhancement Act, was signed into law today. Appropriating $484 billion in relief for the COVID-19 outbreak, it provides additional funding for small business loans, healthcare providers, and COVID-19 testing. The Small Business Administration (SBA) has been unable to accept new applications for the Paycheck Protection Program or the COVID-19 related Economic Injury Disaster Loan (EIDL) assistance program (including EIDL Advances) because Coronavirus Aid, Relief, and Economic Security Act funding was exhausted. The . . . Read More
BLOG: HHS Provides Guidance on the CARES Act’s Provider Relief Fund
Under the CARES Act, Congress set aside $100 billion for the Public Health and Social Services Emergency Fund (the Provider Relief Fund) to reimburse healthcare providers for healthcare-related expenses or lost revenues attributable to the Coronavirus (COVID-19); the Paycheck Protection Program and Health Care Enhancement Act, which President Trump signed into law, will provide an additional $75 billion to the Provider Relief Fund. Eligible healthcare providers that provide diagnoses, testing, or care for individuals with possible or actual cases of . . . Read More
Default Terminations – ASBCA Lacks Jurisdiction Over Excusable Delay, Constructive Change Defenses Not Presented to Contracting Officer for Final Decision
Westlaw Journal Government Contract recently published an article by Meghan Leemon and Lauren Brier titled “Default Terminations – ASBCA Lacks Jurisdiction Over Excusable Delay, Constructive Change Defenses Not Presented to Contracting Officer for Final Decision.” The article covers a decision from the Armed Services Board of Contract Appeals (ASBCA) that highlights the importance for prime contractors to preserve all relevant defenses to termination in advance of an appeal to the Board of Contract Appeals or Court of Federal Claims. To access the full article, please visit this link . . . Read More