In Part I of this two-part blog, we covered an SBA proposed rule that would require agencies to apply the Rule of Two to most standard multiple award contracts (MACs) and task and delivery orders thereunder. In that blog, we covered the Rule of Two generally and the basics of SBA’s proposed changes to it. Well, as promised, this Part II blog is going to dig in a bit deeper to this proposed rule, its driving policies, and its potential impacts. But a whole lot has changed in the federal government contracting landscape (even since Part I of this blog). So, I will also address the elephant in the room (as best I can) by providing information regarding the big questions, “will the proposed rule stand a chance–and will there even still be a Rule of Two–under the new administration?“
Continue readingAuthor Archives: Nicole Pottroff
GovCon FAQs: How Should a Joint Venture Allocate Profits?
It is a fairly standard business practice to divide profits according to ownership ratio. And a joint venture made up of only small business venturers only pursuing small business set-asides can follow this business practice—or any business practice—to divide up its profits (limited only by any applicable state, local, or Tribal law). But SBA does have specific and strict requirements for allocating the profits of any joint venture (1) between a small business protégé and its SBA-approved large business mentor, and (2) that qualifies for and pursues socioeconomic set-asides (i.e., 8(a) Program, WOSB/EDWOSB, HUBZone, VOSB/SDVOSB) and includes non-similarly situated entities.
Continue readingExecutive Order for Nondisplacement of Federal Workers Rescinded
Indeed, Executive Order (EO) No. 14055, Nondisplacement of Qualified Workers Under Service Contracts, was only one of many predecessor EOs rescinded by the Trump administration shortly after taking office. But its removal has significant impacts on federal government contracting. As explained in EO No. 14055, its requirements sought to promote skilled worker retention in the federal workforce by placing requirements on contractors (and subcontractors) to provide the service employees from predecessor service contracts an essential right of first refusal of employment in successor or follow-on contracts. But EO No. 14055 has now been officially rescinded as part of the new administration’s stated policy to lift any orders it felt were “replacing hard work, merit, and equality with a divisive and dangerous preferential hierarchy.”
Continue readingStrategies for Dealing with a Government Shutdown
Shuttering of the government (or parts of the government) following appropriations lapses has become an increasingly common phenomenon in recent times. Continuing resolutions have become a recurring stopgap measure. Funding lapses interrupt the usual predictability of government operations, which harms both agencies and federal contractors that are left in limbo with stop work orders.
Unfortunately, unlike many other topics, the FAR has little say when it comes to procedures for contractors to follow during or following a government shutdown. It seems that the FAR’s authors didn’t really envision the government shutting down as a normal occurrence. Recovering expenses incurred as a consequence of government shutdowns can be challenging.
Here are some pointers.
Continue readingUpdate: SBA Proposed Rule Would Require “Rule of Two” Application to Multiple Award Contract Task and Delivery Orders (Part I)
SBA’s recently proposed rule seeks to officially broaden the reach of its “Rule of Two”–a government contracting requirement fundamental to supporting our nation’s small business infrastructure, policies, and goals. I emphasize “officially” because, even though this is technically a proposed change to SBA’s rules, it is really more of a “regulatory implementation” of judicial law than anything (don’t worry, we will go into more detail on this point later). Specially, SBA’s proposed rule would require the Rule of Two’s application to task orders and delivery orders under most standard multiple award contracts (MAC). This Part I blog will briefly explain what the Rule of Two is and detail SBA’s proposed update to it. But keep your eyes out for the soon-to-follow Part II blog on this topic. There, we will dig in a bit deeper to the Rule of Two, the policies driving it, and the potential implications for SBA’s proposed Rule of Two update.
Continue readingVeterans Day: Thank You for Your Service
Today, at SmallGovCon, we would like to take this opportunity to honor all the veterans and active-duty military for their service.
The first celebration using the term Veterans Day occurred in Birmingham, Alabama, in 1947. Raymond Weeks, a World War II veteran, organized “National Veterans Day,” which included a parade and other festivities, to honor all veterans. The event was held on November 11, then designated Armistice Day.
Armistice Day, commemorating the end of World War I in 1918, when major hostilities officially ceased on the eleventh hour of the eleventh day of the eleventh month. Later, U.S. Representative Edward Rees, from our home state of Kansas, proposed a bill that would change Armistice Day to Veterans Day.
Today, Veterans Day is a time to reflect on the contributions of millions of men and women who have defended their country, often enduring incredible hardship and separation from their families. It’s a moment for communities nationwide to show gratitude and respect, whether through parades, ceremonies, or personal acts of kindness toward veterans.
Thank you for your service, Veterans!
Are Mentor-Protégé Joint Ventures Just Too Successful, Asks SBA
SBA recently issued a proposed rule purportedly concerning the HUBZone Program and its regulations–but actually, covering a bevy of other discussions and proposed changes relating to size, SBA’s other small business socioeconomic programs, and even teaming. Specifically, regarding teaming, SBA revealed that it has apparently decided to take a deeper look into the immense success of mentor-protégé joint venture teaming. It is also requesting comments on this concern, as well as potential policy changes for joint venturing in SBA programs, more generally.
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