Constitutionality of 8(a) Program Reaffirmed
Earlier this year, a judge of the U.S. District Court for the District of Columbia reaffirmed the facial constitutionality of the 8(a) Program in response to a challenge by a small business owner, and he also rejected an argument that the program is unconstitutional because it violated the “non-delegation” doctrine. The case is Rothe Development, Inc. v. Department of Defense, No. 12-CV-0744, 2015 WL 3536271 (D.D.C. June 5, 2015). This is the second recent constitutional challenge to the 8(a) Program . . . Read More
OHA Clarifies Non-Manufacturer Rules For Procurements Conducted Under Simplified Acquisition Procedures
Last month, the SBA Office of Hearing and Appeals (“OHA”) issued a decision which has clarified that, as in the past, for procurements conducted under simplified acquisition procedures, offerors who wish to qualify as a small business under the non-manufacturer rule do not have to supply the end item of a small business. This holding arose from a change in SBA regulations which—intentionally or not—created an ambiguity with regard to the ability of an offeror to offer the end item . . . Read More
Improvements Noted in the VA’s CVE Verification Process
By Alex Levine A new report by the U.S. Government Accountability Office (GAO) notes measurable improvement in the processes used by the Department of Veterans Affairs (VA) to verify Service-Disabled, Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). The report updates a 2013 GAO report, which had found numerous programmatic inefficiencies in the process used by the VA stemming from the VA’s failure to prioritize comprehensive, long-term strategic planning. According to the report, since that time, the VA has . . . Read More
VA Proposes Significant Changes to Its VOSB/SDVOSB Verification Program
On November 6, the Department of Veterans Affairs (VA) issued a proposed rule amending its regulations governing the VA’s verification program for veteran owned small businesses (VOSBs) and service-disabled veteran owned small businesses (SDVOSBs). 80 Fed. Reg. 68795 . The VA proposed both minor, technical changes as well as substantive amendments with the aim of striking a balance between preventing fraud and providing a process that would make it easier for VOSBs and SDVOSBs to become verified. The most notable change is the VA’s . . . Read More
The 10 Most Common Mistakes in Employment Handbooks That Can Lead to Legal Liability
In this article, we decided to focus on 10 common mistakes that can expose your company to potential legal liability: Using a “one-size fits all” approach. It’s tempting to use a handbook template you find online as your own. It may be okay to use one as a place to start, but you should not rely on a template when drafting a handbook. Each business is unique with different policies and workforces, not to mention each may be subject . . . Read More
Kingdomware Vs. the VA: Supreme Court Case to be Dismissed?
First, if you are not familiar with the Kingdomware case, please review this blog post as it will give you a good overview of the case background . If you are already aware of the Kingdomware case, you will likely be surprised to hear that on November 4, 2015, the U.S. Supreme Court issued an order to the parties in the Kingdomware case to submit briefs on whether the case is moot and should, therefore, be dismissed. In its order, the Supreme Court basically asked the parties whether the contract at issue has already been performed and, . . . Read More
Reporting Executive Compensation: What If You Don’t Report?
Government contractors are accustomed a myriad of reporting requirements. One such requirement that has caused much consternation is the FAR’s executive compensation clause which, as of October 1, 2015, applies to all contracts exceeding $30,000, as opposed to the pre-inflationary adjustments threshold of $25,000. The clause requires contractors to report their five most highly-paid executives and list their total compensation for the preceding fiscal year. Most contractors are–not surprisingly, given the nature of the information–very reluctant to disclose such information . . . Read More
SBA Gradually Approves of Hiring Key Personnel from an Alleged Ostensible Subcontractor
By Julia Di Vito The Small Business Administration (“SBA”) is undergoing a gradual shift in its views on small business prime contractors proposing to hire “key personnel” from their subcontractors in the context of the ostensible subcontractor rule. As most small business subcontractors who have been involved in a size protest know, the ostensible subcontractor rule provides that when a prime contractor is unusually reliant on the subcontractor, SBA will deem the prime contractor affiliated with its subcontractor in performing . . . Read More
PilieroMazza Legal Advisor – Fourth Quarter 2015
In this Issue: More Small Business Subcontracting Plan Changes: SBA Proposes to Allow Subcontracting Plan Credit for Small Business Subcontractors at any Tier Mastering Price Adjustments for Increases in the Contractor Minimum Wage Happy New Year: As we begin the new fiscal year, government contractors need to identify risks that affect both revenue and costs. If You Snooze, You May Lose – Be Mindful of the Statutes of Limitations if You Intend to Enforce Your Rights in a Court of . . . Read More
SBA Approval of 8(a) Joint Ventures – What Is Required Beyond the Regulations?
By Kimi Murakami Over the past several months, our firm has been approached by Section 8(a) companies throughout the country who have been advised by their SBA district offices that their 8(a) joint ventures would not be approved by the SBA. This disappointing news came in spite of the fact that the 8(a) company felt it had met the requirements for 8(a) joint ventures in the SBA rules (see 13 C.F.R. § 124.513). Based on the varied reasons for these . . . Read More