Hack Response: Notarized Letters Now Required for SAM.gov

Because of a recent cyber attack on the System for Award Management, the Federal Service Desk is requiring new contractors to submit a signed notarized letter in order to be registered. Later this month, existing registrants seeking to update or renew profiles will have to do the same.

This move comes after the General Services Administration acknowledged on March 22 that the inspector general is looking into a hack of the SAM.gov database, in which the hackers changed the banking information for “a limited number” of contractors.

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Thank you, Boise!

Last week I had the fantastic opportunity to travel to Boise to speak at the Idaho Small Business Contracting Symposium.  My talk focused on recent updates in the law relating to contracting with the Federal government. It was a broad topic I hope was valuable to all who attended.

The symposium provided a wonderful opportunity to meet some clients face-to-face after having established a relationship over email and the phone and also to make some great new contacts. Huge thanks to Gary Moore and Lee Velton and the Idaho PTAC for organizing and inviting Koprince Law LLC to speak. Thanks to all who stopped by the table (and if you asked me where to get a copy of the Joint Ventures handbook, here’s a handy dandy link.)

Next stop: Kansas SBDC Cybersecurity Forum in Manhattan, Kan., April 25, where I’ll be on the Identify, Protect, Detect, Respond, Recover panel. The event is sponsored by the Washburn Kansas Small Business Development Center. Registration is open. Hope to see you there.

GAO Reports on How Contracting Officers Select NAICS Codes

A newly released Government Accountability Office report provides a rare peek behind the curtain of how contracting officers assign North American Industry Classification System codes.

Contracting officers are required by 13 C.F.R. § 121.402(b) to designate the NAICS code that “best describes” the work to be performed. It sounds simple enough, but the report reveals that it can be tricky.

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2018 NDAA Increases Civilian Micro-Purchase Threshold to $10,000

The 2018 National Defense Authorization Act (NDAA) has generated lots of headlines regarding the so-called “Amazon amendment” and the Act’s prohibition on the Russian IT company Kaspersky Labs products. But gone under reported is a huge change to how the government makes small purchases.

The 2018 NDAA, signed by President Donald Trump on December 12, increases the standard micro-purchase threshold applicable to civilian agencies from $3,000 to $10,000. Last year, the NDAA increased the Department of Defense (DoD) micro-purchase threshold to $5,000. This larger jump for civilian agencies is likely to have large impact on government purchasing.

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GAO Says “No” to Air Force Buying Employees Sporks

The U.S. Air Force cannot buy sporks, at least not in many situations.

One would think that the recently passed $700 billion defense bill would provide a little wiggle room for the military to buy paper plates and utensils for its civilian contractors, but, according to the GAO, that is not necessarily the case.

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Economic Dependence Affiliation: A One-Way Street

Under the SBA’s economic dependence affiliation rule, two companies can be deemed affiliated when one company is responsible for a large portion of the other company’s revenues over time.  But must both companies count one another as affiliates—or does the rule only apply when the recipient’s size is challenged?

A recent SBA Office of Hearings and Appeals case answers these questions: when a company is economically dependent upon another company, it is affiliated with the company on which it depends, but the opposite is not true. In other words, economic dependence affiliation is a one-way street.

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Binding Arbitration in Employment Contracts? Not in Some Federal Government Work

Asking new employees to sign arbitration agreements is common in the commercial business world. But it can be a big no-no in government contracting.

In a recent bid protest decision, GAO sustained a protest where a Reston, Virginia company required its proposed key personnel to sign binding arbitration agreements.  In other words, requiring key personnel to arbitrate employment disputes cost the original awardee a $41 million contract.

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