On Deck for SBA Regulations in 2023: Affiliation and WOSB Rule Changes

SBA, like other agencies, publishes a semiannual Regulatory Agenda to provide an update on the various rules it has coming up as well as a timeline for when they will be published or become final. While SBA doesn’t have to meet these timeframes, it’s always good to check in on what SBA has been working on when the final rules will come out. This agenda includes an update on increased size standards, along with some other important rules. Here is a summary of the upcoming rules and what we think could most impact federal contractors. Be sure to comment on these rules if you have an opinions on them.

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DoD Revises its Other Transactions Guide

Something we frequently hear, when talking to those involved in the federal contracting industry, is that just when you think you have a handle on all the different ways federal contracting is run, you find out about another new program, authority, protest, guidance, regulation, or any other possible wrinkle of federal contracting. One prime example of this is that many individuals getting into federal contracting will often be surprised that the FAR is not the only standard that may drive how a procurement activity is handled. As we have blogged about in the past, “Other Transaction Authority” can come into play on certain procurements. The Department of Defense (“DoD”) utilizes this unique type of procurement authority and releases an “Other Transaction Guide” to dictate how this authority will be used. But with all things, only change is guaranteed, and any contractor who thought they knew this unique procurement authority’s ins and outs will need to take another look, as the DoD has just released a revised “Other Transactions Guide” based on industry guidance and regulatory changes.

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Clock Now Ticking on Federal Contractor TikTok Ban

Federal contractors, be sure to ask your kids or a young person what TikTok is (if you don’t already know), because those providing services to the federal government now have to take steps to ban it from employee’s devices in certain situations. A recent FAR rule has now implemented Congress’s ban on use of TikTok on government devices.

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SBA Revisions to the “Two-Year Rule” for Joint Ventures: a Reminder to Read the Entire Rule

SBA recently revised its affiliation regulations in a number of ways, some of which we have already discussed here. We have likely sounded pretty upbeat about most of SBA’s recent updates thus far, as the majority do seem to be a step in the right direction–adding clarity to SBA’s rules and furthering the policies SBA seeks to enforce. Well, not trying to rain on any parades here, but at least one of SBA’s recent regulatory updates, (at least in our humble opinion) has the potential to confuse federal contractors regarding SBA’s affiliation rules. That update revised the language in SBA’s “Two-Year Rule” for small business joint ventures–though, it really didn’t change the substance or effect of the rule, at all. Let’s take a closer look.

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Exception to the Rule: Evaluating Price at IDIQ Versus Order Level Is a Limited Exception

A recent COFC decision yielded some important insights about government contracting. We already wrote about some joint venture aspects of the decision. But the decision also touched on whether GSA’s solicitation violated federal procurement law by excluding price as an evaluation factor at the indefinite delivery indefinite quantity (IDIQ) level for a procurement.

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Limitations on Subcontracting: Partial Set Asides

Subcontracting is a hot topic in the federal government contracting world. Large businesses placing bids on federal procurements are often required to have a small business subcontracting plan, while small businesses are limited to exactly how much work they can subcontract out. The FAR and SBA rules contain the details relevant to small businesses’ limitations on subcontracting. These regulations are, in general, pretty straightforward. Well, at least when it comes to total small business set asides for one specific type of work. Further, there are a ton of resources available to help small business federal contractors understand these limits. Just googling “limitations on subcontracting” comes up with webinars, blogs, federal government sites, and even YouTube videos on the topic, but most only focus on the more general limitations. There aren’t nearly as many resources that take on the topic of partial set asides, but these limitations are important as well. In this post, I am going to walk you through how these limitations apply to partial set asides to show that contracts partially set aside for small businesses are not nearly as intimidating as they may seem.

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Event: Limitations on Subcontracting and the Nonmanufacturer Rule Webinar hosted by Texas El Paso APEX Accelerators, June 6, 10:00-11:30am MDT

For small businesses and their teammates, few topics in government contracting are as confusing as the limitations on subcontracting for set-aside and socioeconomic sole source contracts.  And if that isn’t stressful enough, the “LoS” is an area of heavy enforcement: get it wrong, and a contractor can face major penalties. The nonmanufacturer rule is another commonly misunderstood rule in the federal government contracting realm–but also, one we encounter quite often in our role assisting federal contractors.

In this course, government contracts attorneys, Nicole Pottroff & Stephanie Ellis, from Koprince McCall Pottroff LLC, will help you make sense of the limitations on subcontracting and nonmanufacturer rule. Using a step-by-step process and plenty of examples to bring these rules to life will help you ensure both understanding and compliance. Hope you will join us! Registration link here.