Event: APTAC Limitations on Subcontracting Session

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.  

Wouldn’t it be nice if someone would explain the limitations on subcontracting in plain English?  Well, if you’re a PTAC counselor, you’re in luck. On November 5, 2020, Koprince Law LLC Senior Partner Steven Koprince will present a session at the 2020 APTAC Fall Conference to help PTAC counselors and their clients understand and comply with this essential rule.

SBA Rule Tamps Down Joint Venture Unequivocal Control Requirement

The SBA’s new rule on Consolidation of Mentor-Protégé Programs contained a lot of updates. One of those concerned the level of control that a lead joint venture member has to have over a joint venture.

In particular, SBA now says that the lead venturer doesn’t have to have unequivocal control as the Office of Hearings and Appeals had suggested in the past. The other joint venture partners can have some say in the joint venture, but how much?

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SBA Clarifies How to Calculate Joint Venture Receipts for Small Business Size Purposes

In many industries, small business status under SBA’s government contracting rules depends on a company’s average annual receipts. But if a company is a member of a joint venture, it can be confusing figuring out which joint venture receipts count toward the company’s small business size.

Fortunately, in its recent new rule, SBA has provided two important clarifications. Let’s take a look.

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SmallGovCon Week in Review: Oct. 19 – Oct. 23, 2020

We’ve made it through another week–well done! I wanted to give a shoutout to the University of Texas San Antonio PTAC. Steven Koprince and I enjoyed discussing some legal updates with them earlier this week.

This week, we also explored some key changes from the recent SBA rule on Consolidation of Mentor-Protégé Programs. These included changes regarding replacing the three-in-two joint venture rule, consideration of subcontractor experience, joint venture Facility Security Clearance, and joint venture limitations on subcontracting.

But there were a lot of other federal contracting stories this week, including CMMC questions from industry, a micropurchase update on orders, and a public official pleading guilty to acceptance of gratuities.

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Joint Ventures and the Limitations on Subcontracting: SBA Provides Some Clarity

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.

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You May Dig Yourself into the Mud by Failing to Use the Standard Form for Your Bid Bond

When 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.  

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