FAR Issues Final Rule on Limitations on Subcontracting

It has been a long time coming, but the Department of Defense, in conjunction with the GSA and NASA, are finally issuing a final rule amending the FAR guidance regarding limitations on subcontracting. In this post, we are going to explore just what these changes are and what they mean for government contractors such as yourself. The hope is this brief summary and analysis will provide you some insight as to just what the new rules do.

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CIO-SP4 Amendment 11 Removes a Small Business Requirement

A quick update on CIO-SP4. NITAAC has issued amendment number 11 to CIO-SP4. It moves the deadline to August 27, and takes out some confusing language about small business teams.

Specifically, it has removed the language saying: “The small business prime must demonstrate how they will comply with the LOS by including in their Small Business Teaming Agreement the specific level of effort and how each will ensure compliance with 52.219-14.”

That is now deleted.

That is the only change of note from Amendment 11. As it was a confusing provision and had been vexing many small business teams, it’s good that NITAAC took it out. But did they have to wait until the last possible moment?

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SmallGovCon Week in Review: August 15-20, 2021

Happy Friday to all of our SmallGovCon readers and we hope you had a great week! This week saw some interesting federal contracting developments, such as several announcements from the SBA including an announcement to increase the amount of federal contracting dollars that go to small, disadvantaged businesses as well as the appointment of key Small Business Administration staff. Jay Bonci was also sworn in as the Air Force CTO, this week.

Read on for other news in federal government contracting.

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Number of Small Businesses Awarded Federal Government Contracts Has Dropped 12.7% in Four Years

The number of small businesses receiving government contracts dropped yet again in Fiscal Year 2020–and the four-year decline is 12.7%.

In its FY 2020 goaling scorecard, the SBA reported that 45,661 distinct small businesses received contracts in the top 100 NAICS codes. The previous fiscal year, 46,661 distinct small businesses received contracts. Four years ago, when SBA first started including this statistic in its annual reports, the number stood at 51,866. Clearly, the numbers are going in the wrong direction.

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CIO-SP4 Amendment 10: More Changes and No Delay

Amendment 10 clarifies obligated dollar values, how to have subcontracted federal work counted, restrictions to contractor participation in task areas, evaluation of contractor program manager(s), establishing a static date from which to calculate the three-year look-back for corporate experience relevance, and evaluation of labor rates.

Needless to say, there is a lot of things packed into Amendment 10, and here’s the kicker, proposals are still due August 20th! With little time to digest, let alone alter, proposals in line with Amendment 10, NITAAC has left little room for offerors to catch up with the changes.

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GAO: Multiple Contracts With Single Agency May Increase Conflict Risk

As federal contractors begin to become engaged in multiple programs for a particular agency, the potential for the firm to encounter a situation where it finds itself involved in an organizational conflict of interest (OCI) may increase. This is particularly true with respect to “impaired objectivity” OCI, which is when a firm’s ability to render impartial advice to the government is or might be undermined by the firm’s competing interests. These OCIs often arise in service contracts where the contractor is placed in a position of evaluating its own performance on other contracts.  

In a recent case, GAO found that an agency’s award of a contract created an impermissible impaired objectivity OCI for a contractor from two different perspectives for services that the contractor provided in the capacity as both a prime and subcontractor for an agency. The case is Steel Point Solutions, LLC B-419709,B-419709.2 (July 07, 2021).

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SmallGovCon Week in Review: August 9-13

Happy Friday the 13th, Readers! In doing research on the origins of why Friday the 13th became an ominous day on the calendar, I found a lot of theories.  Dr. Simon Bronner, a professor of American studies and folklore at Pennsylvania State University says that Friday the 13th is just a convenient milestone for people who are looking to trace bad luck to a certain cause—but there’s nothing special about the date itself. Apparently, the number 13 is considered lucky in some countries, like Italy, he adds. I’m one who prefers to look at things optimistically so I’m gong to side with the Italians on this one. I hope your Friday the 13th is the best day ever.

Here are some articles covering the happenings in federal government contracting this week. Enjoy, and have a wonderful Friday the 13th and weekend. Wishing you all “buona fortuna” (good luck in Italian).

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