In many industries, small business status under SBA’s government contracting rules depends on a company’s average annual receipts. But if a company is a member of a joint venture, it can be confusing figuring out which joint venture receipts count toward the company’s small business size.
Fortunately, in its recent new rule, SBA has provided two important clarifications. Let’s take a look.
Continue readingJoint ventures operating under the SBA’s regulations are subject to two work share restrictions: the limitations on subcontracting, which governs work share between the joint venture and its subcontractors) and the so-called “40 percent rule,” which governs work share between the joint venture partners.
It can be easy to get confused about how the rules work together. Fortunately, in a new rule published on October 16, SBA has provided some much-needed clarity.
Continue readingFor 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.
Continue readingIf 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.
Continue readingFiscal 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 18, 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!
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.
Continue readingEver 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.
Continue reading