SBA OHA confirms 3-year look-back period for economic dependence affiliation

Under the SBA’s regulations, affiliation between two companies might exist where one company derives 70% or more of its receipts from the other over the preceding three fiscal years. See 13 C.F.R. § 121.103(f)(2).

This economic dependence affiliation, as it is called, can be tricky to identify in practice—it is, after all, a rebuttable presumption of affiliation. That is, a company might be able to demonstrate that economic dependence doesn’t exist if, for example, it has only been in business for a limited amount of time and has only been awarded a limited number of contracts.

Recently, the SBA’s Office of Hearings and Appeals considered the bounds of the economic dependence affiliation rule and interpreted the three-year look-back period.

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Reminder: Joint Venture Agreements Must Include Required Provisions

It’s no secret that federal contract opportunities are becoming more and more competitive. But as we’ve previously gushed, small businesses enjoy a tremendous tool for enhancing their competitiveness: participating in a joint venture with another company.

Properly formed, a joint venture allows its participants to augment their capabilities and experiences in the quest to win (and successfully perform) a particular opportunity. But there’s the trick—to enjoy the benefits of a joint venture, that joint venture must meet various regulatory requirements. One misstep and the joint venture might not be eligible for the award.

A recent SBA Office of Hearings and Appeals decision shows the importance of making sure these regulatory requirements are met.

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Client Spotlight: Active Deployment Systems Gives Back To Those Impacted By COVID-19

For many people—and for businesses all across the country—the news over the past month or two has been bleak. Even for those lucky enough to stay healthy, COVID-19 has caused significant financial pain, as business disruptions have led to unemployment numbers rivaling those seen during the Great Depression.

To be sure, there are rays of sunshine poking through the storm clouds. The federal government has tried to get financial support to small businesses coping with economic uncertainty. And we’ve heard incredible stories of people helping their neighbors in need.

These feel-good stories truly are inspiring. That’s why, when I heard of one client’s effort to give back to their community, I felt compelled to share it.

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Defense Department Provides COVID-19 Guidance

Last week, John Mattox wrote of OMB’s guidance to contracting officers in dealing with the extraordinary challenges caused by COVID-19. Among other things, OMB instructed agencies to be flexible in providing extensions on performance deadline and encouraged open communication with industry partners on the response to COVID-19.

Now, the Department of Defense—the federal government’s largest purchasing unit—has issued its own guidance to constituent agencies.

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Preparing for the Worst

The hot topic of late—for good reason—is the coronavirus (or COVID-19), and its incredible impact on people and the world’s economy. It’s inescapable, and turning on the evening news can be downright scary.

We’re all concerned with how to protect our loved ones from the impact of this outbreak. But for business owners—particularly small business owners—those concerns are compounded by the fear of potential economic hardships that are almost certain to come.

In this post, we’ll discuss suggestions as to how a federal government contractor might prepare for disruptions caused by the coronavirus (or other calamities).

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5 Things You Should Know: CMMC

CMMC has been a hot topic for federal government contractors of late, for good reason: once CMMC is rolled out, contractors under a particular Defense Department procurement must meet the applicable cybersecurity level, or they’ll be considered ineligible.

But in case you’re still wondering what CMMC is and why it matters, let’s take a closer look. Here are five things you should know about the Department of Defense’s new Cybersecurity Maturity Model Certification (“CMMC”).

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