Our latest installment of our Back to Basics series explores novation agreements and their related cousin name change agreements. A novation agreement is needed when a contractor is transferring (or assigning) federal government contracts to another company. The government has discretion in approving such a transfer, and this post will explore how that process works.
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Proposed Updates to DFARS Regarding Foreign Ownership, Control, or Influence
It sometimes takes a little time for federal statutes to be reflected in federal regulations. Recent proposed updates to DFARS regarding Foreign Ownership, Control, or Influence (FOCI) is a good example of this. These updates, meant to implement sections of the National Defense Authorization Acts of 2020 and 2021, are meant to mitigate risks related to FOCI or beneficial ownership. Today, we shall explore these updates and what they mean for federal contractors.
Continue readingThe “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule, Where Are We Now?
For better or for worse, these federal procurement “times they are a-changin’.” One obvious source of recent change is the shiny new FAR 2.0, a.k.a. the Revolutionary FAR Overhaul (RFO). With the government’s widespread implementation of the RFO and its many procurement rule and procedure updates, we at SmallGovCon have tried to cover as much as possible. But we’re talking about an essential rewrite of the decades-longstanding procurement playbook here. So unsurprisingly, there’s still a lot to go. One recent change well-worth some deeper discussion is the RFO’s updated “Once 8(a), Always 8(a)” Rule–which I’ve aptly deemed the “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule. As the SBA’s “Once 8(a), Always 8(a)” Rule remains unchanged, this RFO update has the potential for significant impacts on small business federal contracting, as well as some implementation conflicts–or confusion at the least.
Continue readingFAR Updates Trade Agreement Act Thresholds
The The Trade Agreements Act (TAA) and its companion, the Buy American Act (BAA), both set policies for a preference for increased domestic purchases by the federal government and its contractors. However, the TAA is designed as kind of a counterweight to the BAA. The BAA (passed in 1933), “the first of the major domestic content restriction laws, requires federal agencies to apply a price preference for ‘domestic end products’ and use ‘domestic construction materials’ for covered contracts performed in the United States.” So, the BAA encourages use of US-produced goods.
The TAA, on the other hand, waives some of those requirements in favor of certain countries. The TAA permits waiver of BAA “domestic content restrictions” with respect to certain “countries that have trade agreements with the United States.” So, for “covered end products or construction materials imported from a designated country” where they are manufactured or transformed “are treated as domestic end products or materials for purposes of the BAA.”
A recent change to the FAR updates the thresholds at which the TAA becomes applicable to federal procurements. Because these thresholds can change, it can have an impact on which contracts are applicable to the TAA versus the BAA.
Continue readingPresident’s Executive Order Requires Terms Addressing DEI in Contracts
Recently, President Trump issued an executive order focused on federal contractors and DEI (meaning “Diversity Equity and Inclusion”) initiatives. Through this executive order, the President has quickly placed new requirements on federal contractors and agencies to include specific terms within their contracts and subcontracts. These terms add up to a somewhat lengthy contract clause, with the basic requirement that parties agree to not utilize DEI practices and agree to comply with any investigations of such practices by an agency. The executive order also provides some stark consequences for any failure to comply with its aims. Let’s dive in.
Continue readingFAR 2.0 Update: Deviations and FAR Companion Guide
SmallGovCon readers may have read up on recent posts regarding the the Revolutionary FAR Overhaul, or simply RFO. For background, our earlier posts regarding various aspects of the RFO can be found here: Executive Order, Overview of FAR 2.0, FAR Part 6, FAR Part 19, FAR Part 12, FAR Part 15, FAR Part 33.
While the drumbeat of new FAR part revisions ended in October 2025, the RFO has not gone away. In fact, it’s kind of the opposite. The RFO revisions have now been adopted by many federal agencies as deviations, including the Department of Defense/War (DoW). Here is an update on the deviations and the FAR Companion guide.
Continue readingFederal Court: Temp Workers Count As Employees Under SBA Rules
Small business size for federal procurement can be measured based on receipts or employee counts. Some small business procurements are set aside for small businesses as determined by the employee counts of those businesses, as opposed to the more common receipts based size-standard. SBA size rules, in turn, define what is an employee for those size standards that use employee counts, including whether temporary workers must be included in the employee count.
Employee counts were also utilized for PPP loan purposes, to determine what companies were eligible for PPP loans, with PPP loans only available to companies under certain headcounts. A recent federal district court decision turned on the definition of employee for PPP loan purposes. However, this case should be instructive for determining employee counts for all SBA purposes, including federal procurement, since the employee definitions for PPP loans and small business contracting are the same.
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