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Veteran-Owned Small Business (VOSB) and Service-Disabled, Veteran-Owned Small Business (SDVOSB): Certification; Correction, Small Business Administration (SBA)
SBA is correcting a final rule published in the Federal Register on November 29, 2022. The rule implemented a statutory requirement to certify VOSB Concerns and SDVOSB Concerns participating in the Veteran-Owned Small Business Federal Contracting Program. This document corrects the final regulations. The published rule is available here and is effective on July 3, 2023.
Grants, Contracts, and Other Agreements: Fraud and Abuse; Information Blocking; Department of Health and Human Services (HHS) Office of Inspector General’s (OIG) Civil Money Penalty (CMP) Rules
This final rule amends CMP regulations of the HHS OIG to incorporate new CMP authority for information blocking; incorporate new authorities for CMPs, assessments, and exclusions related to HHS grants, contracts, other agreements; and increase the maximum penalties for certain CMP violations. The published final rule is available here and is effective August 2, 2023. Sections 1003.1400, 1003.1410, and 1003.1420 (amendatory instruction 10) are effective September 1, 2023.
Reporting and Recordkeeping Requirements Under OMB Review, Small Business Administration (SBA)
- To obtain information needed to carry out its oversight responsibilities under the Small Business Investment Act, SBA requires Small Business Investment Companies (SBICs) submit financial statements and supplementary information on SBA Form 468. SBA uses this information to monitor SBICs’ financial condition and regulatory compliance for credit analysis when considering SBIC leverage applications and to evaluate financial risk and economic impact for individual SBICs and the program. The Notice is available here. Comments are due July 31, 2023.
- To obtain information needed to carry out its program evaluation and oversight responsibilities, SBA requires SBICs provide information on SBA Form 1031 each time financing is extended to a small business concern. SBA uses this information to evaluate how SBICs fill market financing gaps and contribute to economic growth and to monitor the regulatory compliance of individual SBICs. The Notice is available here. Comments are due July 31, 2023.
Small Business Size Standards: Adjustment of Alternative Size Standard for Small Business Administration’s (SBA) 7(a) and Certified Development Company (CDC) 504 Loan Programs for Inflation; and Surety Bond Limits: Adjustments for Inflation
SBA proposes amendments to its size eligibility criteria for Business Loans, CDC loans under Title V of the Small Business Investment Act (504), and economic injury disaster loans (EIDL). For the SBA 7(a) Business Loan Program and the 504 Program, amendments provide an alternative size standard for loan applicants that do not meet the small business size standards for their industries. The Small Business Jobs Act of 2010 (Jobs Act) established alternative size standards that apply to both programs until SBA’s Administrator establishes other alternative size standards. For the disaster loan program, the amendments will provide an alternative size standard for loan applicants that do not meet the Small Business Size Standard for their industries. SBA loan program alternative size standards do not affect other federal government programs, including federal procurement. Read more here.
Dozens of Firms Win Challenge to National Institutes of Health’s (NIH) $50 Billion Procurement, Bloomberg Law
The Government Accountability Office sustained 98 protests filed by 64 offerors whose bids were eliminated under NIH’s $50 Billion procurement known as Chief Information Officer-Solutions and Partners (CIO-SP4). Read more here (subscription required).
Upcoming Government Contracts Presentations
Clocking in with PilieroMazza: Labor and Employment News for Government Contractors: New FAR Clause Bans TikTok on Federal Contractor Devices, PilieroMazza Podcast, Nichole D. Atallah and Sarah L. Nash. Click here to listen to the podcast.
Odds for a 5.2% Pay Raise for Feds in 2024 Improve with Release of the Senate Defense Policy Bill, Government Executive
The Senate version of the annual National Defense Authorization Act includes an average 5.2% pay raise for both military service members and civilian Pentagon employees. Read more here.
Department of Labor (DOL) Recovers More Than $48K in Back Wages, Damages for 19 Employees Denied Overtime by Palm Coast Construction Contractor
Investigators with DOL’s Wage and Hour Division found that a Florida commercial carpentry and millwork contractor paid 19 employees straight-time rates for all hours worked, including overtime hours. By doing so, the employer failed to pay the required time-and-a-half overtime premium for hours over 40 hours in a workweek, a Fair Labor Standards Act violation. Read more here.
Transparency in Numbers: Federal Contractors Must be Held Accountable for Their Diversity Efforts, Government Executive
A more diverse talent pool will result in government services—and access to those services—that are more reflective of the constituents those services support. USA Today recently published two articles that looked at diversity data from federal contractors and determined that they are failing to fulfill the promise of more equal opportunity across all levels of their companies. Read more here.
Extra Pay Raises Are Coming to Nearly 33,000 Feds Next Year, Thanks to New Locality Pay Rules, Government Executive
The Office of Personnel Management proposed regulations to create four new locality pay areas, along with a comprehensive map update adding dozens of jurisdictions to existing pay regions. Read more here.
Upcoming Labor & Employment Presentations
Department of Health and Human Services (HHS) Gets Financial Weapon to Crack Down on Contract, Grant Fraud, Bloomberg Government
HHS’ Office of Inspector General is getting broader authority to leverage financial penalties for fraudulent and abusive behavior involving government contracts and grants. Read more here (subscription required).
Information Collection; Prohibition on Contracting With Entities Using Certain Telecommunications and Video Surveillance Services or Equipment, Department of Defense (DOD), General Services Administration (GSA), National Aeronautics and Space Administration (NASA)
DOD, GSA, and NASA are combining Office of Management and Budget (OMB) control numbers for the Federal Acquisition Regulation (FAR) by FAR part. This consolidation is expected to improve industry’s ability to easily and efficiently identify burdens associated with a given FAR part. The review of the information collections by FAR part allows improved oversight to ensure there are no redundant or unaccounted for burdens placed on the industry. Lastly, combining information collections in a given FAR part is also expected to reduce the administrative burden associated with processing multiple information collections. The Notice is available here. Comments are due August 29, 2023.
Venture Backing of Defense Firms Foiled by Small Business Rules, Bloomberg Government
The Pentagon’s effort to draw more commercial investment to technology with military uses is thwarted by regulations designed to ensure the viability of small business vendors in the federal contracting base. Read more here.