SBA Proposes Substantive Changes to Negative Control and Unconditional Ownership and Control Considerations Across Socioeconomic Programs: Key Considerations and Takeaways
As PilieroMazza noted recently here , the Small Business Administration (SBA) released a proposed rulemaking that will impact government contractors. This client alert discusses a major proposed change that would significantly impact any small business that has a minority shareholder or investor. While the proposed rule also aims to create uniformity across SBA’s socioeconomic programs—including the 8(a) Business Development, Women-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB)—the proposed rule looks to undo years of case law and seriously impacts what it . . . Read More
SBA Proposed Material Changes to HUBZone Program Impacts Eligibility
As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, including those that are participants in or seeking to be admitted to the Historically Underutilized Business Zones (HUBZone) Program. PilieroMazza is posting a series of client alerts regarding SBA’s proposed rulemaking. This alert highlights some of the proposed changes pertaining specifically to the HUBZone Program that will impact small business government contractors and their contracting partners. A. Overview The HUBZone Program was established . . . Read More
SBA Proposed Rule’s Potential Adverse Impacts on Small Business IT Value-Added Resellers
In August, SBA proposed new rules on a wide range of topics. Some of the proposed rules, like the significant changes to the recertification rules that we blogged about here , have been getting most of the headlines so far. The purpose of this client alert is to put the spotlight on one of the less talked about proposals, a seemingly minor proposed change to how SBA calculates annual receipts. SBA’s proposal may seem like a small change, but it has . . . Read More
SBA Proposed Changes to 8(a) Program Impacts Applicants and Participants
As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, including those that are participants in or seeking to be admitted to the 8(a) Business Development Program (8(a) Program). PilieroMazza is posting a series of client alerts regarding SBA’s proposed rulemaking. This alert highlights some of the proposed changes pertaining specifically to the 8(a) Program that will impact both applicants and participants. 8(a) Application SBA is proposing certain revisions that . . . Read More
SBA Proposed Rule Significantly Changes Effect of Size/Status Recertifications and Alters M&A for Government Contractors
The Small Business Administration (SBA) recently issued a proposed rule ( Rule ) that would significantly change a government contractor’s obligations to recertify its size and socioeconomic status under set-aside contracts and the effect of such recertifications. The Rule impacts eligibility for set-aside contracts, significantly alters the landscape for mergers and acquisitions (M&A) in the government contracts industry, and could have other unintended downstream consequences. Historically, size and socioeconomic program status recertification have been addressed in separate parts of SBA’s regulations . . . Read More
FTC Non-Compete Ban Will NOT Become Effective September 4, 2024
As suspected and previewed in PilieroMazza’s April 24, 2024 blog , a Texas federal judge permanently blocked the Federal Trade Commission’s (FTC) impending restriction on non-competition agreements (Non-Compete Rule). This means, at least for now, businesses will not need to follow the Non-Compete Rule and can maintain non-compete provisions in their agreements with employees, so long as those agreements are state law compliant. U.S. District Judge Ada E. Brown indicated earlier this summer (see our coverage here ) she was likely to . . . Read More
Win or Lose: Using CMMC 2.0 Proposed Rule to Position Yourself for DOD Contracts
The Cybersecurity Maturity Model Certification ( CMMC ) Program has been a headache for many defense contractors since the idea was first introduced in 2019. The program seeks to protect unclassified information, including federal contract information (FCI) and controlled unclassified information (CUI) not intended for public release, shared by the Department of Defense (DOD) with its contractors and subcontractors. In December 2023, the DOD proposed a rule to formally codify the CMMC Program in a phased rollout. The DOD has now released . . . Read More
Trials and Trib(e)ulations: SBA Seeks Tribal Consultation on Eligibility, Funding, and Contract Competition
Government contractors who are members of a tribal nation should be aware of the meetings listed below and a listening session the Small Business Administration (SBA) is hosting regarding important developments within the SBA. These developments could affect HUBZone contract eligibility and federal funding and support programs for tribal nations, as well as prohibit Mentor-Protégé Joint Ventures from competing for Multiple Award Contracts. PilieroMazza explains in more detail below. New Proposed Rule The SBA seeks to discuss a proposed rule . . . Read More
Newly Increased Health and Welfare Rates on SCA Government Contracts
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. In July 2024, WHD increased the prevailing H&W fringe benefits from a rate of $4.98 per hour to $5.36 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates have increased from $4.57 per hour to $4.93 per hour. Updated rates of $2.36 per hour (without the EO) . . . Read More
Prepare to (Semi)Conduct Your Due Diligence! Proposed Rule to Prohibit Certain Semiconductor Products and Services
Whether you’re aware or not, semiconductors are part of a vast variety of electronics. Semiconductors appear in items ranging from smartphones to pacemakers. The Federal Acquisition Regulatory Council (FAR Council) issued an Advanced Notice of Proposed Rulemaking ( Proposed Rule ), which would amend the Federal Acquisition Regulation (FAR) to prohibit executive agencies from procuring products and services that contain certain “covered” semiconductors. The Proposed Rule is expected to impact up to 75% of all government contract awardees. For contractors affected by . . . Read More