Category Archives: Statutes and Regulations

Runway Extension Act Update: SBA Says Three-Year Reporting Period Still Applies

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In late 2018, Congress passed the Small Business Runway Extension Act, which had a single purpose: change the three-year average annual receipts calculation period (for determining small business eligibility) to a five-year calculation period.

Small businesses, for the most part, have been watching with bated breath for the SBA to comply with the Runway Extension Act. But as we’ve previously written, the SBA has thus far refused to do so (albeit under shifting rationale).

Now, the SBA has cemented its position against applying the Runway Extension Act—according to the SBA, “[b]usinesses must continue to report their annual receipts based on a 3-year average until the SBA amends its regulations.”

I’m not convinced the SBA has it right.

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Losing Key Owners of SBA Set-Aside Businesses – Now Out in Contract Management Magazine

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Clients who own businesses under one of SBA’s socioeconomic designations have often asked us, what happens after I’m gone? Meaning, if the key owner becomes incapacitated or dies, what happens to the set-aside designation for future contracts and ongoing contracts, and are there restrictions on transferring the ownership interest?

While we can’t answer all their questions, my recent article in the March 2019 issue of Contract Management Magazine (the monthly publication of the National Contract Management Association), outlines some of the key issues and answers from the government contracting perspective.

The magazine has nicely allowed us to reprint the article. Click here to read!

DOE Expands Pool of Eligible Protégés under DOE Mentor-Protege Program

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The Department of Energy has joined the ranks of government agencies aligning part of its respective small business regulations with the SBA.

The DOE has issued a class deviation expanding the pool of companies eligible to be proteges under the DOE mentor-protege program. This deviation comes almost 20 years after DOE first published guidelines for its formal DOE mentor-protégé program and almost three years after SBA formally established a government-wide mentor-protégé program.

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FCC Seeks Comments From Small Businesses on Proposed Satellite Regulations

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There are more than 170 million pieces of debris in space. This debris has accumulated over years and years of launching hundreds of satellites into orbit; the same satellites that allow us to rely on GPS, Instagram all our travel photos, or even make this blog available to the masses. While there is almost a 0% chance any of this space debris will land in your front yard, or on your shoulder, it still poses a significant risk to other satellites in various orbits around earth.

To stem the growth of space debris, the Federal Communications Commission recently released a proposed rule, 84 FR 4742, that significantly changes how satellite launches are both planned and tracked. Unfortunately, these changes will likely drive up costs of accessing space, making small business participation even more challenging than it already is.

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GAO Investigates Buy American Act Exceptions and Waivers

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The Buy American Act includes a number of waivers and exceptions. The Section 809 panel, for one, has called for expanding these exceptions, at least for the DOD. A recent GAO report examines how agencies apply the existing waivers and exceptions to the Buy American Act.

GAO’s general opinion is that agencies should improve their Buy American Act data reporting and enhance training on its waivers and for procument personnel. The report also provides some interesting details about the scope of the Buy American Act, and how agencies implement it.

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Section 809 Panel Recommends Increased Flexibility of Time Frame to Spend DOD Contract Dollars

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As we’ve written about before, the Section 809 Panel is the Congressionally-mandated group that has made a number of far-reaching recommendations to change current programs that affect DOD acquisitions.

The third volume of the Panel’s recommendations, stretching over 500 pages, includes a recommendation that DOD be granted additional flexibility to spend its appropriated dollars from Congress. As the Panel puts it, Congress should “[p]rovide increased flexibility to the time periods within which contract obligations are permitted to occur.”

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Section 809 Panel Recommends Changes to Domestic Purchase Preferences

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The Section 809 panel is the Congressionally-mandated group that has made a number of far-reaching recommendations to change current programs that affect DOD acquisitions.

Another one of their ideas is to eliminate certain domestic purchasing preferences by having Congress create exceptions for DOD purchases and create a public interest exception for the Berry Amendment. The panel’s concern is that the purchasing restrictions can result in higher prices, reduced volume, or delivery delays.

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