The Weekly Update February 3, 2017

GOVERNMENT CONTRACTS Presidential Executive Order on Reducing Regulation and Controlling Regulatory Costs On January 30, 2017, President Trump issued an executive order requiring for every one new federal regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.  In addition, for fiscal year 2017, the heads of all agencies are directed that the total incremental cost of all new regulations, including repealed regulations, . . . Read More

Court of Federal Claims Applies a 150 Employee Size Standard to ITVAR Non-Manufacturers

The Court of Federal Claims (“Court”) has issued a bid protest decision which stated, in apparent dicta, that a concern must satisfy a 150-employee standard under the Information Technology Value Added Resellers (“ITVAR”) exception to NAICS code 541519 as opposed to the 500-employee size standard which a concern usually must meet to qualify as a small business under the requirements of the “non-manufacturer rule” (“NMR”). York Telecom Corp. v. United States, No. 15-489 (Fed. Cl. Jan. 11, 2017). According to an SBA . . . Read More

Key Issues for Due Diligence of Government Contracts – Part I

By Kimi Murakami Comprehensive due diligence review of any target company is imperative when determining whether to buy another company. Layer on the fact that the target company has government contracts then several unique issues must also be critically evaluated when performing due diligence. Failure to do so could result in a significant loss in value of the target – and its contracts – after the acquisition has closed. What follows is a list of certain key issues that should . . . Read More

The Weekly Update January 27, 2017

GOVERNMENT CONTRACTS Executive Order Expediting Environmental Reviews and Approvals for High Priority Infrastructure Projects On January 24, 2017, President Trump issued an executive order for agencies to streamline and expedite environmental reviews and approvals for all infrastructure projects, including projects that are high priority, such as improving the U.S. electric grid, telecommunications systems, and repairing and upgrading critical port facilities, airports, pipelines, bridges and highways.  The executive order also directs the White House Council on Environmental Quality to decide within . . . Read More

It’s a New Year, Are You Still a Small Business?

By Michelle Litteken It is a new year, and this is the perfect time for a small business to consider whether it still qualifies as a small business. We recommend that small businesses assess their size at least once a year. Because eligibility under a revenue-based size standard is based on a company’s average revenues from the most recently completed three fiscal years, and those revenues generally establish a company’s size for the entire upcoming year, the beginning of a . . . Read More

The Weekly Update January 16, 2017

GOVERNMENT CONTRACTS Federal Acquisition Regulation; Federal Acquisition Circular 2006-95 This Federal Acquisition Circular provides a summary presentation of final rules issued by the Department of Defense (“DOD”), the General Services Administration (“GSA”) and National Aeronautics and Space Administration and agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council. The Small Entity Compliance Guide for these final rules can be found here . Item I – Uniform Use of Line Items (FAR Case 2013-014) This final rule . . . Read More

Lower Tier Small Business Subcontracting Plan Credit Finally In Sight

By Katie Flood Right before the tail end of 2016, SBA delivered its long-awaited  Final Rule  regarding lower-tier small business subcontracting plan credit. Implementing directives initiated by Congress in the 2014 National Defense Authorization Act, the Final Rule allows other than small prime contractors with individual subcontracting plans to receive credit toward small business subcontracting goals for subcontract awards made to small businesses at any tier, to the extent reported on the subcontracting plans of its lower tier subcontractors. The Final Rule . . . Read More

The Weekly Update December 30, 2016

GOVERNMENT CONTRACTS Submission for Office of Management and Budget Review; Payment of Subcontractors On January 20, 2016, the Department of Defense, Government Accountability Office, and National Aeronautic and Space Administration proposed a rule to amend the Federal Acquisition Regulation (“FAR”) Case 2014-004, Payment of Subcontractors, requiring contractors to notify the contracting officer in writing if the contractor pays a reduced price to a small business subcontractor, or if the subcontractor’s payment to a small business contractor is more than 90 . . . Read More

The Weekly Update December 23, 2016

GOVERNMENT CONTRACTS Payment of Subcontractors The Department of Defense (“DOD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (‘NASA”), have issued a final rule amending the Federal Acquisition Regulation (“FAR”) to implement a section of the Small Business Jobs Act of 2010.  This statute requires contractors to notify the contracting officer, in writing, if the contractor pays a reduced price to a small business subcontractor or if the contractor’s payment to a small business subcontractor is more than . . . Read More

The Weekly Update December 16, 2016

GOVERNMENT CONTRACTS Paid Sick Leave for Federal Contractors The Department of Defense (“DOD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”) have issued an interim rule revising the Federal Acquisition Regulation (“FAR”) to implement Executive Order 13706 (the “E.O.”), Establishing Paid Sick Leave for Federal Contractors. The E.O. seeks to increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by ensuring that employees on those contracts can earn up . . . Read More