Hiring Incumbent Employees At Low Labor Rates–What Could Go Wrong?

A company bidding to replace an incumbent service contractor cannot presume incumbent workers will take major pay cuts without setting itself up for a potentially successful protest.

FAR 22.12 generally requires successor service contractors to give a right of first refusal to qualified employees under the previous contract. And even when these nondisplacement rules don’t apply, many offerors’ proposals tout their efforts to retain incumbent employees. But asking incumbent employees to take significant pay cuts–and expecting them to accept–is unreasonable and can torpedo a proposal. Case in point: GAO sustained a protest recently against an awardee who had proposed high retention rate of incumbent workers, but lower pay for those positions.

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GAO: Late Is Late–Even If Agency Server Malfunctions

You’ve hit send on that electronic proposal, hours before the deadline and now you can sit back and feel confident that you’ve done everything in your power – at least it won’t be rejected as untimely – right?

Not so fast. If an electronically submitted proposal gets delayed, the proposal may be rejected–even if the delay could have been caused by malfunctioning government equipment. In a recent bid protest decision, the GAO continued a recent pattern of ruling against protesters whose electronic proposals are delayed. And in this case, the GAO ruled against the protester even though the protester contended that an agency server malfunction had caused the delay.

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Trump: DoD Contracts Should Be Fixed-Price

We previously have written about the trending preference toward fixed-price contracts, and away from cost reimbursement contracts, in defense procurements.  The Defense Department’s supplement to the FAR (known as DFARS), in fact, already includes restrictions on using cost-reimbursement or time and materials contracts.

Now the President has come out in favor of fixed-price defense contracting. In a Time Magazine article published today, President Trump signaled strong support for the fixed-price contracting preference, going so far as to “talk of his plans to renegotiate any future military contracts to make sure they have fixed prices.”

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SAM Registration: New Bill Requires Notification Of Free Assistance

There is no cost to register in SAM or other government contracting databases–but that hasn’t stopped some companies from charging would-be contractors hefty fees for assistance in the registration process.  Some of these companies are out-and-out frauds, like the Tampa firm whose owner recently pleaded guilty to wire fraud in a FEMA registration scheme.  And others, while not fraudulent, still often neglect to mention an important (but for them, inconvenient) fact: government contracts registration assistance is available for free through Procurement Technical Assistance Centers and other reputable sources.

Now, a bipartisan new Senate bill aims to get the word out about the free registration assistance available to prospective contractors.

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Proposed SBA Rule Adopts 2017 NAICS Codes

It is out with the old, in with the new at the U.S. Small Business Administration.

A proposed SBA rule change published Tuesday, April 18, would incorporate the 2017 NAICS code revision into the SBA’s size standards table. If the proposed rule is made final, it will replace SBA’s current size standards table, which SBA has relied on for making size determinations since 2012. The revised size standards table will add 21 new NAICS industries. The revised NAICS code table also will feature larger standards for six industries, smaller standards for two industries, and will switch one size standard from revenue-based to employee-based.

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SBA Processing “All Small” Mentor-Proteges In Eight Days

The SBA is processing the typical “All Small” Mentor-Protege Program application in a lightning-fast eight days.

Speaking at the National 8(a) Association 2017 Small Business Conference, John Klein, the SBA’s Associate General  Counsel for Procurement Law, confirmed that All Small mentor-protege agreements are being processed very quickly.  I was in the audience this morning for Mr. Klein’s comments, which also included many other interesting nuggets on the SBA’s new All Small Mentor-Protege Program.

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Trump Won’t Repeal Obama’s Order Prohibiting Contractor LGBTQ Discrimination

We are quickly approaching our 1000th blog post on the SmallGovCon blog. To celebrate we want to reward one lucky reader with a free one hour custom webinar for up to 50 people presented by Steven Koprince on the government contracting topic of your choice! You can enter by using the hashtag #SGC1000 on Twitter or Facebook just by telling us why you read the blog or what you love most about. You can also simply fill out this form to be entered. Good Luck!


President Donald Trump won’t repeal former President Obama’s 2014 Executive Order prohibiting federal contractors from discriminating on the basis of sexual orientation and gender identity.

According to CNN and other news outlets, the new Administration will allow Executive Order 13672 to remain on the books.  The Executive Order, which was codified in the FAR in 2015, adds sexual orientation and gender identity to the list of protected categories under the FAR’s Equal Opportunity clause, FAR 52.222-26.

In recent days, the new Administration had faced repeated questions about whether Executive Order 13672 would remain in place.  While this week’s announcement puts those questions to rest, the fate of other government contracts Executive Orders signed by President Obama, such as the so-called “mandatory sick leave” Executive Order, remains uncertain.  My colleagues and I will keep you posted.