Five Signs Your Teaming Agreement Will Lead to Affiliation

Teaming agreements are valuable tools for all government contractors. They allow the proposed prime contractor and subcontractor to iron out their relationship prior to competing for a government opportunity. Teaming relationships themselves are particularly important to small business contractors who are trying to grow their portfolio, but may need the insight of an experienced subcontractor. However, small business primes teamed with large subcontractors on set-aside contracts are chief targets for size protests. Therefore, all small business primes must ensure that . . . Read More

A Refresher on the Non-Manufacturer Rule

By Katie Flood Unless you are a small business regularly engaged in selling supplies to the U.S. Government, you may have only a passing familiarity with the requirements of the Non-Manufacturer Rule (NMR). The NMR is an exception to the usual requirement that contractors supplying goods to the government perform at least 50 percent of the cost of manufacturing the items. A manufacturer is a business concern that, with its own facilities, performs primary activities in transforming organic or inorganic . . . Read More

Government Contractors Beware: Trying to Fit A Square Peg into A Round Hole

By Kimi Murakami What may be standard in the corporate world can severely disrupt set-aside status in the highly-regulated government contract space. Take the recently-decided case of Precise Systems. This decision presents another cautionary tale of why it is so critical for contractors to understand the SBA rules–or to talk to lawyers who do–before entering into corporate restructuring transactions. In the final decision issued by Chief Judge Patricia Campbell-Smith in the case of Precise Systems, Inc. v. U.S., No. 14-1174C (Fed. Cl., . . . Read More

Comments on Proposed Rule Regarding Small Business Subcontracting Improvements

After the recent small business subcontracting plan changes were implemented by the U.S. Small Business Administration (“SBA”) in its final rule at 78 Fed. Reg. 42391 , dated July 16, 2013, many of our clients have asked us how the SBA’s new rules should be interpreted in light of the existing FAR small business subcontracting requirements. We believe that the FAR Councils are taking the right steps to harmonize the SBA’s requirements with the obligations the FAR imposes. However, we believe that there are . . . Read More

The Unappealable 8(a) Denial

It is widely known that the Small Business Administration (SBA) disagrees with how the agency’s own Office of Hearings and Appeals (OHA) has ruled in recent years with regard to appeals brought to OHA stemming from denials of 8(a) applications. SBA believes that OHA has placed the burden too heavily on the agency to show why someone is not disadvantaged instead of forcing the individual applying for 8(a) status to affirmatively show they were actually discriminated against or otherwise disadvantaged . . . Read More

8(a) Joint Venture Applications – Don’t Wait Until the Last Minute!

By Kelly DiGrado Interested in forming a joint venture to chase an 8(a) opportunity? Remember to give the SBA advanced notice of your intent, execute your joint venture agreement prior to proposal submission and prepare the necessary supporting documentation for your joint venture application well in advance of the anticipated contract award date. In order for a joint venture to be awarded an 8(a) contract, the joint venture agreement must be executed prior to proposal submission. Additionally, the joint venture . . . Read More

Comments on Proposed Rule Regarding the Women-Owned Small Business Federal Contract Program, RIN: 3245-AG72

We are writing to submit comments on the U.S. Small Business Administration’s (“SBA”) above-referenced proposed rule, issued May 1, 2015, 80 Fed. Reg. 24,846. Our firm represents small businesses, including women-owned and economically-disadvantaged women-owned small businesses (“WOSBs/EDWOSBs”), operating across the government contracting spectrum. Many of the WOSBs/EDWOSBs we represent and have talked to have been eagerly anticipating this rulemaking. The proposed rule places the SBA’s WOSB Program on equal footing with other SBA government contracting programs in providing for award . . . Read More

Control and Responsibility in SDVO SBC Joint Ventures: More than a Title

Most Service-Disabled Veteran-Owned (“SDVO”) Small Business Concerns (“SDVO SBCs”) are likely familiar with the Small Business Administration’s (“SBA”) requirements for an SDVO SBC to submit an offer for an SDVO contract as a joint venture (“JV”). One requirement in particular, i.e., that the parties’ joint venture agreement (“JVA”) contains a provision designating the SDVO SBC as “managing venturer” and an employee of the SDVO SBC as “project manager”, has been heard time and time again by the many SDVO SBCs . . . Read More

Current Trends and Issues in GovCon M&A for 2015

As we are rapidly reaching the middle of 2015, why not pause for a moment and identify some current trends and recurring themes and issues that are found in mergers and acquisitions (“M&A”) within the government contracting industry. With this goal in mind, here is a ‘top six’ list to review and digest: Has GovCon M&A Reached a “New Normal”?  Think about 2006-2007 as being a peak in terms of deal volume and valuations and the first half of 2013-2014 . . . Read More