Government Contractor to Pay $9 Million to Resolve FCA Allegations of Cybersecurity Violations
On July 8, 2022, the Department of Justice announced that Aerojet Rocketdyne Inc.—a government contractor providing propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Department of Defense, NASA, and other federal agencies—agreed to pay $9 Million to resolve allegations that the company violated the False Claims Act by misrepresenting its compliance with cybersecurity requirements in certain federal government contracts. This is one of the first documented cases (which PilieroMazza attorneys discussed in a . . . Read More
House Passes Bill Increasing Importance of Subcontracting Plan Performance as an Evaluation Factor
On June 8, 2022, the U.S. House of Representatives passed a bill, referred to as H.R. 7694, “Strengthening Subcontracting for Small Businesses Act of 2022” (the Bill). The Bill seeks to amend the Small Business Act by requiring federal agencies to more broadly consider the content of subcontracting plans and subcontracting plan performance when evaluating large businesses for federal contracts. If enacted, the Bill should encourage large businesses to subcontract more work to small businesses and to achieve their small . . . Read More
SBA Extends Bona Fide Place of Business Moratorium
Last August, PilieroMazza reported that Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, announced that SBA will be suspending the bona fide place of business requirement for 8(a) construction contracts, effective immediately. While the Small Business Act requires that, to the “maximum extent practicable, construction subcontracts awarded by the Administration pursuant to this subsection shall be awarded within the county or state where the work is to be performed,” in light of the COVID-19 pandemic, it . . . Read More
DOD Issues Guidance on Effect of Inflation on Government Contractors
On May 25, 2022, the Department of Defense (DOD) issued Guidance on Inflation and Economic Price Adjustment (Guidance Memorandum). It was long overdue. Inflation is steadily rising and, as a result, contractors with fixed-price contracts are forced to shoulder skyrocketing supply costs since fixed-price contractors bear the risk of increased costs. As these cost increases erode profit margins and continue to drive contracts into loss positions, contractors are seeking some type of relief. PilieroMazza recently hosted a webinar, Supply Chain Pain: How Contractors Can Get Relief from a Supply Chain-Related Claim , detailing relief options and best practices when a . . . Read More
GSA Seeks Feedback on Potential Changes to Polaris Joint Ventures
On May 13, 2022, the General Services Administration (GSA) published draft proposed changes to the Polaris Government-Wide Acquisition Contract (GWAC). Specifically, the agency is proposing to revise Section L.5.1.3.1 of the request for proposals (RFP), dealing with joint ventures, after reviewing industry feedback and engaging with the Small Business Administration (SBA). GSA emphasized that the language is in draft form and is subject to change. Most importantly, members of the small business information technology community are encouraged to provide feedback to [email protected] by . . . Read More
SBA Requests Comments on Potential Change in Size Standard for Resellers
On April 26, 2022, the U.S. Small Business Administration (SBA) issued a proposed rule regarding its small business size standards for federal contractors in manufacturing and other industries with employee-based size standards. Small business federal contractors should take note of the proposed changes and consider whether to address this proposal by submitting a public comment by the June 27 deadline. SBA’s proposals include potential increases in the size standards for 150 industries. These include the size standard for surgical appliance and supplies manufacturing . . . Read More
GSA Will Expand Joint Ventures’ Eligibility to Secure GSA Schedule Contracts Beyond Information Technology
By the end of May, the General Services Administration (GSA) will issue a Multiple Award Schedule (MAS) modification that will open all special item numbers to the GSA Springboard program. As a result, joint ventures will be able to secure all Special Item Numbers (SINs) under the consolidated MAS contracts, not just under IT SINs. With this good news in mind, contractors should consider whether to use their joint ventures to apply for MAS contracts that were formerly unavailable. The Springboard program . . . Read More
Buy American Act Final Rule Strengthens Domestic Sourcing Requirements
The Federal Acquisition Regulatory Council (FAR Council) published a final rule on March 7 that bolsters domestic sourcing requirements in federal procurement under the Buy American Act (BAA). This rule makes several significant changes to limit government contractors’ reliance on foreign products and component parts. Even though the final rule does not take effect until October 25, 2022, government contractors should be preparing for it now. PilieroMazza will discuss the new rule in a webinar on the BAA on April 27. Soon after . . . Read More
ESOPs Have Opportunity to Shape DOD Pilot Program on Sole Source Follow-On Contracts
In late 2021, the National Defense Authorization Act for Fiscal Year 2022 (FY 2022 NDAA) included a first-of-its-kind provision that authorized a pilot program through which businesses that are owned 100% by an employee stock ownership plan (ESOP) could qualify for sole source awards on a follow-on contract. Of course, the devil is in the details, and this potentially historic provision merely authorized the program but included no details. The opportunity to fill in those details has arrived. The Department of Defense (DOD) recently announced that companies can . . . Read More
GSA Pauses Polaris RFPs
GSA’s Polaris RFPs are on pause after the agency received comments regarding the evaluation of joint ventures. GSA is now assessing whether changes are required to the RFPs and is temporarily pausing the RFPs until further notice. WOSBs, SDVOSBs, and HUBZone IT service providers should pause proposal activities until the assessment is completed. This assessment may be an indication that GSA is carefully considering aspects of Polaris RFPs that will hopefully be beneficial to both large and small contractors and improve . . . Read More