For joint ventures operating under the SBA’s regulations (including SBA-approved mentor-protege joint ventures), dealing with security clearances has been a particularly vexing issue: some contracting officers have insisted that a joint venture (an unpopulated, limited-purpose entity) separately obtain a Facility Security Clearance, even when both joint venture members hold FCLs.
Soon, though, joint venturers will be able to stop worrying about obtaining separate FCLs for their unpopulated joint ventures. A new SBA regulation taking effect next month allows a joint venture to rely on the security clearances of its members.
It’s commonly misunderstood that the FAR requires procuring agencies to consider the capabilities, past performance and experience of an offeror’s proposed subcontractors. Unfortunately, that’s just not true.
But now, as part of a comprehensive new final rule, the SBA will require agencies to consider the capabilities, past performance and experience of small business subcontractors in certain cases.
If you’ve attended one of my presentations on joint ventures over the years, you’ve probably heard me climb up on my soapbox and proclaim that the so-called “three in two” joint venture rule is one of my least favorite rules in government contracting. If you ask me, the rule is both terribly confusing and so easily circumvented as to be largely meaningless.
Perhaps the SBA was listening to me and others who strongly dislike the rule, because the the three-in-two rule is going away. Effective November 16, 2020, the SBA will replace the three-in-two rule with a different and much less confusing requirement–basically, a “two” rule.
Amidst all the uncertainty that FY 2020 has brought, don’t let your understanding of SBA’s affiliation rules add to that list! Instead, join me and my colleague Steven Koprince for an exciting new learning opportunity. We will be presenting “Affiliations,” a virtual event hosted by the Iowa State University Center for Industrial Research and Service (CIRAS) PTAC.
In this webinar, we will demystify the concept of affiliation in government contracts. We will explain (in plain English and using examples for key concepts) SBA’s rules surrounding common ownership and common management, as well as commonly misunderstood affiliation rules like those involving familial relationships and economic dependence.
The event will take place on November 5, 2020, from 9:00 AM – 10:00 AM (CDT). You can find additional information and register for this event here.
The cold weather we’ve been getting this week might signal the end of the summer tomatoes and basil. But we can start looking forward to fall in earnest. For one thing, my kids are getting excited about Halloween. I hope SmallGovCon readers also have much to be excited about in the beginning of the federal fiscal year.
To stay on top of what’s going on in federal contracting, remember to check out our upcoming legal update on October 22, but you can also read on for developments including expiring HUBZone flexibilities, brand name or equal rules, and a report on COVID-19 related loan fraud.
As we discussed, in late 2019 the SBA issued a proposed rule that would make a number of significant changes to the mentor-protege programs and other small business contracting rules. Well, the SBA will soon issue its final rule on these changes, so make sure you are aware of the new rules.
Fiscal Year 2020 is officially in the books. For small businesses in government contracting, it was a year of major changes–and many more changes are on their way in FY 2021.
On November 22, please join me (virtually!) for “Small Business Contracting Update & 2021 Predictions,” sponsored by the National Contract Management Association, Boston Chapter. I’ll cover the biggest changes in FY 2020, from the HUBZone Program overhaul to WOSB certification to increases in the 8(a) Program economic thresholds. Then I’ll dust off my crystal ball and predict what’s on the way in FY 2021, including the long-awaited changes to the limitations on subcontracting and a revamping of the rules governing debriefings.
It’s easy to register: just click here. I hope to see you for this great pre-Thanksgiving event!