Joint 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 readingWhen required, bid bonds are an essential aspect to a proper bid. Under FAR 52.228-1, they secure the liability of a surety to the government by providing funds to cover the excess costs of awarding to the next eligible bidder if the successful bidder defaults by failing to fulfill these obligations.
There is a standard form for bid bonds. Though it’s not required, using the standard form is probably the safest bet to avoid possible rejection of a bid, as one contractor learned the hard way.
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 readingIt’s commonly misunderstood that the FAR requires procuring agencies to consider the capabilities, past performance and experience of an offeror’s proposed subcontractors. Unfortunately, that’s just not true.
But now, as part of a comprehensive new final rule, the SBA will require agencies to consider the capabilities, past performance and experience of small business subcontractors in certain cases.
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 readingAs we discussed, in late 2019 the SBA issued a proposed rule that would make a number of significant changes to the Mentor/Protégé programs and other small business contracting rules. Well, the SBA will soon issue its final rule on these changes, so make sure you are aware of the new rules.
Continue readingFebruary of 2020 seems like a long time ago, for many reasons. But that was when the official version of the Cybersecurity Maturity Model Certification (CMMC) standards were released. Recently, the DoD issued an interim rule that will update the DFARS to implement the assessment methodology and CMMC framework for DoD procurements as well as add a new requirement for cybersecurity assessment under the NIST SP 800-171 framework. Here are some of the key points.
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