SmallGovCon Week in Review: October 4-8, 2021

Happy Friday and we hope you had a very productive week. There was a lot of discussion this week concerning the federal vaccine mandate as well as an announcement from the Department of of Justice concerning the cyber fraud. You can read more about those topics and other news in federal government contracting in the articles below.

Have a great weekend!

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DOD Construction: House-Passed 2022 NDAA Establishes Preferences for Local Contractors

Local construction contractors would receive new contracting preferences for Department of Defense contracts under the version of the 2022 National Defense Authorization Act passed by the House of Representatives on September 23.

During floor debate on the 2022 NDAA, the House agreed to an amendment proposed by representative Andy Kim. The amendment requires, to the extent practicable, that DOD give a preference to construction contractors who hire local employees. The amendment also requires all contractors and subcontractors for military construction projects to be licensed in the state where the work is to be performed.

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OHA: Provisions in Operating Agreements for SBA Set-Aside Program Participants can Sink Eligibility

The organizational documents for a business seeking certification under a SBA socio-economic program can play an important part in a company demonstrating its eligibility under the SBA’s requirement for control by the company’s owners, such as a service-disabled veteran or disadvantaged owner. Unlike some of the SBA’s requirements for eligibility, the manner in which a program applicant or participant might run afoul of this requirement are not always obvious. Typical provisions in the organizational documents that, under “non-SBA” circumstances may seem innocuous, may unintentionally undermine the disadvantaged owner’s requirement of showing of unconditional ownership and control. 

In a recent OHA decision regarding Service-Disabled Veteran-Owned Small Business (SDVOSB) eligibility, (CVE Protest of: Randy Kinder Excavating, Inc.  d/b/a RKE Contractors, Protester Re: E&L Construction Group, LLC), an unsuccessful bidder filed a protest of a set-aside contract award, alleging that the company was not unconditionally controlled by the disadvantaged owner. After considering a variety of arguments, OHA issued a decision based on a handful of provisions in the respondent’s operating agreement.

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SmallGovCon Week in Review: September 27-October 1, 2021

It’s already October! Can you believe it? The leaves on our trees are starting to turn beautiful shades of yellow, red and orange and the temperatures are finally starting to cool down after a very hot and humid summer.

A lot has been happening this week in federal government contracting as contractors braced for a government shut down. Here are a few articles that we think are noteworthy.

Have a great weekend and enjoy that fall weather!

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House-Passed 2022 NDAA Raises Small Business Goal to 25% and Increases SDVOSB, HUBZone, SDB and WOSB Goals

The version of the 2022 National Defense Authorization Act passed by the House of Representatives on September 23 would increase the government’s small business prime contracting goal from 23% to 25%.

The House-passed version of the 2022 NDAA would also increase the prime contracting goals for service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses.

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VA Contracting Officers May Now Use Veteran Employment Preferences in Competitive Acquisitions

Newcomers to the federal marketplace are often surprised when they learn that eligibility for the VA’s SDVOSB and VOSB preference programs are based on the status of the contractor’s owners–and have nothing to do with how many veterans the contractor employs.

While the SDVOSB/VOSB eligibility rules aren’t changing, VA Contracting Officers now have authority to give preference to offerors that employ veterans on a full-time basis. A new VA Acquisition Policy Flash provides guidance to VA Contracting Officers on implementing 38 U.S.C. 8129, a statute that took effect in January 2021 and provided Congressional authority for offering such a preference.

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