Inflation Relief Is Coming for DOD Contractors
As PilieroMazza has reported , rising costs due to inflation have been one of the most significant issues facing contractors with fixed-price contracts for the past year. Although the Department of Defense (DOD) and General Services Administration (GSA) have taken some steps to ameliorate the situation, those solutions have left contractors wanting. But true relief may be in sight. Congress included a provision in the National Defense Authorization Act (NDAA) for Fiscal Year 2023 that would authorize DOD contractors to receive . . . Read More
Final Rule Establishes Requirements for New SBA Veteran Small Business Certification Program
The Small Business Administration (SBA) issued a final rule last week, officially transferring the responsibility for certification of veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB) to SBA, effective January 1, 2023. We previously blogged about this change here , indicating that Section 862 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 provided for the elimination of the Department of Veterans Affairs’ (VA) certification program altogether and implementation of a certification requirement for all VOSB / SDVOSB . . . Read More
SBA Adjusts Economic Disadvantage Thresholds for 8(a) and EDWOSB Programs and Monetary-Based Size Standards
Per an interim final rule published on November 17, 2022, the Small Business Administration (SBA) is adjusting the three economic disadvantage thresholds applicable to the 8(a) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs for inflation. SBA’s interim final rule will also increase its receipts-based small business size standards. These changes will be effective on December 19, 2022. SBA’s changes should be welcomed by small businesses and participants in the 8(a) and EDWOSB programs and those looking to apply. Economic Disadvantage Thresholds for . . . Read More
SBA Proposes Revisions to Ownership and Control Requirements for the 8(a) Business Development Program
As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, primarily those that are participants in the 8(a) Business Development Program. PilieroMazza has posted a series of blogs regarding SBA’s proposed rulemaking, and this client alert highlights some of the proposed changes that pertain specifically to the 8(a) Program. Ownership and Control As you may be aware, there are certain ownership restrictions on an 8(a) firm. One of the restrictions . . . Read More
Potential Changes on the Horizon for DOT’s Disadvantaged Business Enterprise Program
The Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) Program is in the midst of a major overhaul that would update, streamline, and clarify existing rules, strengthen implementation, and increase reporting requirements. The DOT’s DBE Program allows small businesses owned by socially and economically disadvantaged individuals to tap into billions of dollars’ worth of contracting opportunities issued at the state and local level through federally-funded infrastructure projects. On July 21, 2022, DOT issued a notice of proposed rulemaking (Rule) which presents the biggest potential . . . Read More
Overcoming the Inflation Crisis: The Ins-and-Outs of Extraordinary Contractual Relief for Government Contractors
An all-but-forgotten remedy in government contracting, Extraordinary Contractual Relief (ECR) , is in the midst of a potential resurgence due to the Department of Defense’s (DOD) most recent memorandum on inflation entitled Managing the Effects of Inflation with Existing Contracts . As PilieroMazza previously discussed , the current inflation crisis prompted DOD to suggest that, subject to the availability of funds, contractors should seek ECR when seeking an upward adjustment to the price of an existing firm-fixed-price contract. If you are a government contractor impacted by inflation while performing a contract, see below for the ins‑and‑outs . . . Read More
SBA Proposes Revisions to Bona Fide Place of Business Requirements for 8(a) Construction Contracts
The bona fide place of business requirement provides that for 8(a) construction contracts, the contractor must have an SBA-approved bona fide place of business in the applicable geographical area. Since August 25, 2021, and as PilieroMazza reported , SBA placed a moratorium on the bona fide place of business requirements for 8(a) construction contracts. The moratorium was extended through September 30, 2023. This client alert reviews certain proposed changes that government contractors operating in the construction sector and participating in the 8(a) . . . Read More
SBIR/STTR Programs Renewed: Compliance Requirements for Small Business Contractors
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SSTR) Extension Act of 2022 was enacted into law on September 30. The Act reauthorizes the SBIR/STTR programs until 2025. The reauthorization is both crucial for current participants, and aspiring small businesses wishing to conduct government-funded research and development (R&D). Small businesses currently participating, or considering submitting a proposal under either program, must be aware of the new program changes, their effective dates, and the potential consequences of noncompliance. . . . Read More
Impact of SBA Proposals on Federal Subcontracting
As PilieroMazza recently noted , SBA released a major proposed rulemaking that will impact government contractors. The proposed rule is focused on SBA’s 8(a) Program (see our client alert highlighting those proposed changes here ), but it also impacts the rules for subcontracting on federal projects. This client alert provides contractors with an overview of SBA’s proposals related to the limitations on subcontracting, subcontractor affiliation, and subcontracting plans. Limitations on Subcontracting (LOS) SBA’s rules currently provide that the period of time used to determine . . . Read More
Section 889 Part B to Take Full Effect for DOD Contractors on October 1st
In October 2020, we wrote about a memorandum issued by the now former Director of National Intelligence (DNI), John Ratcliffe, which waived the requirement that Department of Defense (DOD) contractors comply with Part B of Section 889 of the National Defense Authorization Act for Fiscal Year 2019 until September 30, 2022. Unless another waiver is granted, full compliance with Section 889, Parts A and B, will be required starting October 1st for all DOD contracts. Essentially, Section 889 is a broad prohibition . . . Read More