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Yet Another Recertification Rule

On December 29, 2014, the Small Business Administration (“SBA”) issued a proposed rule to implement the subcontracting limitation requirements mandated by the National Defense Authorization Act of 2013. Buried therein was a new proposed regulation with regard to recertification of size prior to a contract award. Under this new, proposed size recertification rule, firms that are bidding on small business set-aside contracts will need to recertify their size prior to an award if they engage in a merger and/or an . . . Read More

The “Rule of Two” For Orders Placed Against Multiple Award Contracts: The Other Shoe Has Dropped

As many of you may recall, Congress passed the Small Business Jobs Act (“Act”), in July 2010. The purpose of the Act was to ameliorate the effects of the 2008 financial crisis and subsequent recession. Although the Act expanded opportunities for small business there were, nonetheless, some provisions which, in fact, made doing business with the Government somewhat more difficult for small business contractors. In particular, Section 1331 of the Act mandated the Office of Federal Procurement Policy (“OFPP”) and . . . Read More

In a Business Owners Agreement, Should All Owners Be Equal?

Good business planning involves owners of the company developing and entering into a shareholders agreement, operating agreement or partnership agreement (owners agreement). A good owners agreement will allow the owners to plan and prepare upfront for disruptive events in the company’s business life cycle, whether good or bad. And, as part of putting together an owners’ agreement, one of the fundamental questions owners need to resolve is whether all owners should have equal rights. The answer is it depends—in some . . . Read More

DOT’s New DBE Utilization Rules

The Department of Transportation’s (“DOT”) new Disadvantaged Business Enterprise (“DBE”) regulations went into effect on November 3. These new rules will have a significant impact on the highway construction industry, according to the Associated General Contractors of America. Because so many small disadvantaged businesses also participate in the DBE program, it is important that they stay abreast of these new regulations. The DOT considered the revisions to be a minor adjustment to the old rules, but they actually have a . . . Read More

Finally! Sole Source Authority for the WOSB Program

By Megan Connor On December 2, 2014, the House Armed Services Committee and Senate Armed Services Committee released the text of an agreement they have reached on the National Defense Authorization Act for FY 2015 (“NDAA”). Section 825 of the FY 2015 NDAA creates, for the first time, sole source authority for small business concerns owned and controlled by women. This legislation will bring parity to the WOSB Program which, until now, was the only small business procurement program without sole source authority. WOSBs will not see the impact immediately. . . . Read More

Court Ruling Confirms that SDVOSB Contractors Possess Procedural Due Process Rights Against Adverse Eligibility Determinations

The U.S. Department of Veteran Affair’s (“VA”) Center for Veterans Enterprise (“CVE”) has a tough and sometimes thankless job. Its role is to serve as a “gatekeeper” for VA contracting programs for service-disabled, veteran-owned small businesses (“SDVOSB”), so that purported SDVOSBs which are, in fact, no such thing or are otherwise ineligible, do not receive benefits under these programs. Even so, it is no secret that legitimate and eligible SDVOSBs have sometimes had unexpected and significant difficulties with CVE in . . . Read More

Court of Federal Claims Affirms Due Process Rights for Service-Disabled Veteran-Owned Small Businesses

By Brian Wilbourn The United States Court of Federal Claims recently issued an important decision affirming the due process rights of Service-Disabled, Veteran-Owned Small Businesses (“SDVOSBs”). The case, AmBuild Company, LLC v. United States (Fed. Cl., Oct. 2014), involved an SDVOSB that had been decertified without first giving the company notice and an opportunity to respond to the specific compliance issue on which the decertification was based. AmBuild Company, LLC (“AmBuild”) was the awardee under a SDVOSB set-aside solicitation issued . . . Read More

OHA Sheds Some Light on What Constitutes a “Class” of Stock

In my recent article about the impact of separate stock classes on veteran-owned firms , I discussed how having more than one class of voting stock can complicate an ownership analysis under both the Department of Veterans Affairs ’ program for Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses and the U. S. Small Business Administration’s (“SBA”) program (the “SBA Program”) for Service-Disabled Veteran-Owned Small Business Concerns (“SDVO SBCs”). Citing an SDVO SBC status determination for illustration purposes, I explained how the analysis–which may appear straightforward and mechanical at first look–is not so cut and dry when the initial inquiry entails making a . . . Read More