SBA Fixes Joint Venture Security Clearance Problem

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.

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Bye-Bye, “Three-in-Two” Joint Venture Rule

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.

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Event: Small Business Contracting Update & 2021 Preview

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!

Five Things You Should Know: The SDVOSB “Extraordinary Circumstances” Rule

If you’re part of a service-disabled veteran-owned small business, you’ve probably heard of the “extraordinary circumstances” rule–but there’s a lot of confusion out there about what the rule is and how it works.

So let’s get right to it. Here are five things you should know about the SDVOSB extraordinary circumstances rule.

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House-Passed 2021 NDAA Creates Government-Wide SDVOSB Certification Requirement

Ever since the VA set up its SDVOSB verification program, critics of SDVOSB self-certification have been pushing for the government to expand SDVOSB verification government-wide. Now, it might finally happen.

Section 831 of the House of Representatives’ version of the Fiscal Year 2021 National Defense Authorization Act would expand SDVOSB verification government-wide, formally rename it “certification,” and transfer certification authority from the VA to the SBA.

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Limitations on Subcontracting: Step-by-Step, Plain English Guides

In my legal career representing hundreds of small businesses in government contracting, few topics have caused as much confusion as the limitations on how much work can be subcontracted on small business set-aside contracts and sole source contracts (like 8(a) Program direct awards).

Earlier, working with my friends at Govology, I put together step-by-step compliance guides for service contractors, construction contractors, manufacturers, and nonmanufacturers. Each guide is written in plain English and includes examples to help demonstrate how the SBA’s limitations on subcontracting rule (13 C.F.R. 125.6) works in practice.

Here’s where to find my limitations on subcontracting guides:

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Life Moves Pretty Fast: Thank You, SmallGovCon Readers

As many clients and friends of Koprince Law LLC already know, I announced last week that I will be retiring from the active practice of law, effective May 10. As that date draws closer, I will also step down from my role as editor of SmallGovCon, where I’ve written over 1,100(!) posts.

But fear not! Koprince Law and SmallGovCon will continue on, good as ever (albeit with slightly fewer references to things like boneless chicken wings). My colleague Shane McCall will take over as SmallGovCon‘s editor.

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