Navigating SBA’s “Present Effect” on Your Corporate Strategies
Presented by Jon Williams and Kimi Murakami Click here to view the recorded session. Session Description: When looking to make an investment in or purchase a small business contractor, it is critical to understand the potential impact of your corporate strategy under SBA’s small business rules. SBA has a unique rule called the “present effect rule” which can create adverse consequences for mergers and acquisitions, stock options, and convertible securities – even before the transaction is finalized or the option . . . Read More
New Maryland Sexual Harassment Law Creates Important Implications for Employers Both Inside and Outside the State
On May 15, 2018, Maryland Governor Larry Hogan signed into law the Disclosing Sexual Harassment in the Workplace Act of 2018. Described by bill sponsor Craig Zucker (D-Montgomery) as a “national model,” the law, which goes into effect on October 1, 2018, is the first of its kind in the Mid-Atlantic region. And, it has important implications, not only for employers in the State of Maryland, but for out-of-state employers who allow employees to telecommute from, work from time to . . . Read More
Who Are the “Key Management Personnel” for Purposes of My Company’s Facility Clearance?
Whether a federal contractor can be cleared depends on its people. Specifically, whether a company can obtain a facility clearance (“FCL”) depends on the personnel clearances (“PCL”) of the company’s Key Management Personnel (“KMP”). For instance, if a company needs a secret FCL for contract performance, then the company’s KMP either need to have a secret PCL or be excluded from access to classified information. Contractors often ask who the KMP for their companies are supposed to be. At a . . . Read More
When the Law Comes A Callin’: A “How To” For Responding to Subpoenas and Document Requests
Since the last Presidential election campaign began almost three years ago, there has been a significant public focus on sexual harassment, income inequality, crimes against women, public corruption, and the income gap. Sexual harassment claims have skyrocketed in recent months, with some states reporting as much as 400% increases in claim reports. The Department of Labor is enforcing ever-changing compensation rules on service employers. Federal courts are recognizing an expanded reach of workplace non-discrimination laws to the LGBTQ+ community. And, . . . Read More
OFCCP Announces Commitment to Training and Transparency: Can They Deliver?
Published by Set-Aside Alert Newsletter: The Office of Federal Contract Compliance Programs (“OFCCP”) is a federal agency charged with ensuring that approximately 200,000 federal contractors refrain from discrimination and take affirmative action to provide equal employment opportunities for certain protected classes of workers. In recent years OFCCP has developed a reputation as being difficult to work with to resolve concerns and differences arising out of compliance audits. Additionally, compliance requirements under the jurisdiction of the OFCCP are generally not well . . . Read More
The Weekly Update for May 11, 2018
SMALL BUSINESS ADMINISTRATION Masstech, Richard Lee, and Arnold Lee to Pay U.S. $1.9 Million to Settle False Claims Act Allegations Relating to Small Business Innovation Research Awards Columbia-based MassTech, Inc., its former Chief Executive Officer, Arnold Lee, and its former Chief Financial Officer, Richard Lee, have agreed to pay the United States $1.9 million to resolve allegations that MassTech falsely certified that it was a small business concern in order to obtain Small Business Innovation Research (SBIR) awards. The settlement . . . Read More
Legislative Remedies for Surviving Midsize
Back when you started your small business, and the very prospect of making payroll for the month was nerve-wracking, you probably never imagined that your company might actually become too successful. Now, as you get closer to midsize, this very concern may have crossed your mind. Once a company’s revenues exceed the size standard for its industry, it is no longer afforded the federal protections and opportunities of a small business, and it graduates to “midsize,” the undefined middle ground . . . Read More
The Protests Are Coming: Draft DoD Guidance Reveals How Cyber Readiness Will Impact Contract Evaluations
We have been blogging and giving webinars since last year about the DoD requirements around cybersecurity for contractors that are subject to DFARS 252.204-7012. Please view our past blogs and webinars here and here to get more of the backstory. In a nutshell, DoD contractors operating nonfederal IT systems and subject to DFARS 252.204-7012 were required to have a system security plan (“SSP”) in place by December 31, 2017, to demonstrate compliance with the recommended security controls in NIST SP 800-171. Although . . . Read More
The Weekly Update for May 4, 2018
DEPARTMENT OF DEFENSE Defense Federal Acquisition Regulation Supplement: Amendments Related to Sources of Electronic Parts The Department of Defense (DoD) is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that makes contractors and subcontractors subject to approval (as well as review and audit) by appropriate DoD officials when identifying a contractor-approved supplier of electronic parts. 83 Fed. Reg. 87, 19641-2 . Defense Federal Acquisition Regulation Supplement: Statement of . . . Read More
SBA Amends Its Recertification Rules: Effectively Overturns Recent OHA Case
In a noteworthy decision earlier this year, the Small Business Administration’s (“SBA”) Office of Hearings and Appeals (“OHA”) confirmed the broad nature of SBA’s general rule that a contractor maintains its size and socio-economic status for the life of a contract. See In the Matter of Analytic Strategies, Inc., SBA No. VET-268 (Jan. 29, 2018) . This case required OHA to interpret the SBA regulation establishing the recertification rule in the context of Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBC”) status. The regulation permits a concern that initially qualifies as an SDVO SBC . . . Read More