The Trade Agreements Act (TAA) and Buy American Act (BAA) are among the most complex regulatory systems in federal contracting. There’s been a lot of confusion from both contractors and agencies on when they apply to a procurement and how. We have written on the BAA and TAA in the past. Recently, the Court of Federal Claims issued a decision discussing how the two laws interact, and showed that how they apply depends significantly on the circumstances of the procurement, providing some clarification on a past GAO decision we wrote on as well (which held that the TAA is inapplicable to small business set-asides). We will explore that here.
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GovCon FAQs: Can I Ask the Government to Participate in ADR?
Why yes, yes you can! In fact, there is a little known provision of the Federal Acquisition Regulations (FAR) that speaks directly to a contractor’s right to request government participation in Alternative Dispute Resolution (ADR) for any contracting “issue in controversy.” And as long as the four essential elements of ADR stated therein are met, a contracting officer must either agree to such ADR or provide a written explanation with cited statutory or legal authority for rejecting the request.
Continue readingGovCon FAQs: What is the Difference Between an REA and a Claim?
There is an old saying that the only thing constant is change. While true in a broad sense, it is especially true in federal contracting. At some point a federal contractor will find itself facing a change to its contract or performance, costing it money or time. Inevitably, that leads to the question of whether an REA should be pursued, or if a claim should filed. One of the most common responses to that question is actually another question: what’s the difference between an REA and a claim? Let’s answer that question here.
Continue readingGovCon FAQs: Is There Still an Ostensible Subcontractor Rule?
We recently blogged about a decision that focused on the ostensible subcontractor rule and how the SBA’s Office of Hearings and Appeals (OHA) determines whether a subcontractor is an ostensible subcontractor or not. This and other similar cases have raised the question–how has SBA’s regulatory update affected the analysis of the ostensible subcontractor rule, and what remains of that rule. Below we will give a quick review of the decision from that case and look at a couple more principles of the ostensible subcontractor rule.
Continue readingGovCon FAQs: It’s Been Two Years–Has My Joint Venture Reached the End of the Road?
The lifespan of a joint venture is a frequently asked question that can be hard to find in SBA’s regulations if you don’t know where to look. Alternatively, people hear about the “two-year rule” and assume that’s the answer. This question comes up frequently because, like many topics in federal contracting, the answer requires some digging into the regulations and specifically the affiliation rules.
Continue readingGovCon FAQs: How do I Show Service-Disabled Veteran Status for SBA?
Many federal contractors are familiar with or have heard of the Service-Disabled Veteran Owned Small Business (SDVOSB) program. It is currently run by the SBA, but previously was administered by the VA. Due to the nature of the program being around for a while, and shifting from one agency to another in the past few years, undoubtedly there are some requirements that have changed, but contractors may not realize it. One of the requirements that has experienced change is one of the most basic: how you establish that you are a Service-Disabled Veteran. In this installment of our GovCon FAQs series, we tackle, how do you show or prove your Service-Disabled Veteran Status, now that the SDVOSB program is under the SBA?
Continue readingGovCon 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.
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