GAO Affirms SBA Rule: Only Joint Venture Members, not the JV, Need Facility Clearance

For years, it had been difficult for joint ventures to get Facility Security Clearances to go after DoD contracts where a facility clearance was required. The DoD and many contracting officers had long required that the joint venture entity itself, rather than each individual joint venture member, have the FCL. SBA thought it had fixed this problem when it updated its joint venture rules in November 2020 to eliminate the need for the joint venture to have an FCL, as we wrote at that time. But DoD contracting officers had been ignoring this rule, setting up a showdown at GAO to decide if the SBA’s rule did actually apply to the DoD.

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Event: The Ins & Outs of the Nonmanufacturer Rule

The nonmanufacturer rule is one that is commonly misunderstood in the federal government contracting realm. But it is also one we encounter quite often in our role assisting federal contractors.

On September 21, please join my colleague, Steven Koprince, and me as we dive deep into the nonmanufacturer role, tackling the ins and the outs of the rule and answering some of your questions surrounding it. The webinar will be hosted by our friends at the Iowa State University CIRAS PTAC, and it is easy to register: just click here.

SmallGovCon Week in Review: September 13-17, 2021

Happy Friday, Readers. It’s sad that summer is coming to an end but the good news is that fall is upon us which means it is time for cool weather, falling leaves, and football! It seems everyone is filled with optimism at the start of the season. Here’s hoping your favorite team is victorious and in between games here’s a few interesting articles on what’s going on in federal government contracting this week.

Have a great weekend! Go Team!

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Small Business Being Acquired by a Large Business? For Multiple Award Contracts, the 180-Day Rule Doesn’t Apply to Task Orders, says GAO

You may recall a post of ours back in April 2021, where we discussed a little-known change to SBA’s size determination rules that occurred in October 2020. SBA created an exception, at 13 C.F.R. § 121.404(g)(2)(iii), to the usual “size is determined at offer date” rule. Now, prior to award, when a small business is part of a merger or acquisition after it makes an offer on a solicitation, the business has to recertify its size, and depending on when that acquisition occurred, if the business is now large, it may lose its award.

However, the rule is for better or worse not that straightforward, as a small business learned in a recent GAO decision. Because a part of the rule says that task order awards in such cases may not be treated as small business awards, GAO concluded that such awards are still allowed.

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SmallGovCon Week in Review: September 6-10, 2021

Welcome to Friday, SmallGovCon readers!  Now that the weather is cooling off a little, we hope you’re able to enjoy the great outdoors a little more.  However, before you head outside, maybe you’d like to take a few minutes to check out some articles we’ve selected for you about federal government contracting.  We’d especially like to turn your attention to our first featured article about National PTAC Day coming up next week with a special shout-out to them for all the great work they do supporting small businesses. Other interesting news includes the remaining CIO-SP4 protests and how to prepare for a continuing resolution in government funding. Enjoy the articles and have a fantastic weekend!

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Five Things You Should Know: NAICS Code Appeals

NAICS codes are limited in what they can challenge, but can have a powerful effect on a procurement. A NAICS code appeal can challenge the size limit attached to a specific government procurement. This can level the playing field by limiting to smaller businesses, or expand the size of businesses that are able to compete. So, it’s good to know a NAICS code appeal works.

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