PilieroMazza Legal Advisor – Fourth Quarter 2014

In this issue: Court of Federal Claims Invalidates Key Component of the SBA’s Nonmanufacturer Rule At the Crossroads of M&A and Government Contracts – The Novation Process What Every Business Owner Needs to Know About Implementing the New Tangible Property Regulations The Impact of the Fair Pay and Safe Workplaces Executive Order on Contract Procurement

First Zombies, Now Ebola, then What? Preparing for Communicable Diseases in the Workplace

Oh the good ol’ days, when employees were awaiting a fictional zombie apocalypse and getting them to pay attention to prevention and preparedness was easy thanks to zombie animation from the Centers for Disease Control and Prevention (CDC). However, the coming of Ebola has eclipsed not only zombies but common cold and flu preparedness. It is only natural that Ebola seems much more menacing to us than the flu or other common illnesses, but for employers the threats and risks . . . Read More

Weather-Related Delays at Locations Other Than the Government Facility? No Excuse for A Late Proposal

As all federal contractors know, the FAR , as well as many other rules and regulations, put most of the risk on the contractor in so many ways. Common risks include cost overruns on FFP/LPTA procurements, risk of nonpayment for work requested by personnel other than the contracting officer, or timely delivery of a proposal. Now, the U.S. Court of Federal Claims has added another issue with which contractors should be concerned with: the weather. Global Military Marketing, Inc. (“Global”), a federal contractor located near Alabama . . . Read More

Building a Saleable Business & The Importance of a Strategic Plan

For a small business government contractor (“GC”), its small business size is arguably its greatest asset. In the context of building a saleable business, however, if the GC owner or owners fail to adopt and implement a strategic plan early on in the business life cycle, the GC’s small business size could end up operating more like a handicap.   To put this into greater context, in the world of mergers and acquisitions, particularly lower middle market private company deals . . . Read More

Pam Mazza to Speak at NACA Conference

Pam Mazza will be speaking about mergers and acquisitions (“M&A”) at the Native American Contractors Association (“NACA”) Conference next month. M&As can be a tricky business, especially with the complex web of statutes and regulations under which government contractors must operate. Our three-hour seminar will focus on the following topics: The importance of due diligence Letters of intent – negotiating and creating a roadmap for the deal Structure of the deal – asset, stock or merger How regulations impact transaction . . . Read More

Celebrating Women’s Small Business Month

By Kristie Arslan, WIPP Executive Director Women now more than ever are turning to entrepreneurship to take charge of their own career trajectory.  According to American Express OPEN’s 2014 State of Women-Owned Businesses Report , it is estimated that there are nearly 9.1 million women-owned businesses in the United States, generating over $1.4 trillion in revenues and employing nearly 7.9 million people.  As we celebrate Women’s Small Business Month this October, it is important to highlight the progress women business owners have made but also shed . . . Read More

Another Potential Option for Disappointed Bidders in LPTA Procurements

By Alex Levine In today’s contracting atmosphere, government agencies are increasingly relying on procurements conducted on a lowest-priced, technically-acceptable (“LPTA”) basis. It is not uncommon in such competitions for the winning offeror to be the contractor that did not fully understand the solicitation requirements. In such a scenario, the winning offeror submits a price far below that of the other offerors based on its flawed understanding of what is required under the awarded contract. Such low-ball pricing presents a distinct . . . Read More

Function over Form: The Impact of Separate Stock Classes on Veteran-Owned Firms

In my recent blog post about Employee Stock Ownership Plans (“ESOPS”), I discussed how the plans are treated differently under the Department of Veterans Affairs ’ program (the “VA Program”) for Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses versus the Small Business Administration’s (“SBA”) program (the “SBA Program”) for Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBCs”). Just recently, the SBA issued an SDVO SBC status determination which confirms that shares of stock held in an ESOP are treated as outstanding stock under the SBA Program, which is not always the case . . . Read More

Relying on an Affiliate for Past Performance to Win A Contract

Government contractors work hard to please their customers not only to fulfill their contractual obligations but also to establish a solid past performance record and to secure more work. When a company lacks past performance experience, it can find itself at a significant competitive disadvantage against its competitors. Companies without track records often try to address the problem by relying on the experience of an affiliated entity. The affiliate could be a new company they have acquired or, for example, . . . Read More

Mediation: The Conflict Resolution of Choice for Many Business Disputes

Chances are that your company, at some point, has entered into a contract that contains a provision requiring that the parties engage in a form of alternative dispute resolution (“ADR”) either in lieu of, or prior to, instituting a lawsuit to settle a dispute. Contractual ADR provisions usually call for the parties to either engage in binding arbitration, typically under the auspices of the American Arbitration Association (“AAA”), or to submit the matter to non-binding mediation prior to filing suit. It is a . . . Read More