HUBZone Joint Ventures: FAR Council Gets It Wrong

The FAR Council’s proposed update to the limitations on subcontracting, and the DoD’s subsequent FAR deviation, have been met with widespread approval by small contractors.

But for HUBZone Program participants, the proposed rule and DoD deviation contain a glaring problem: a requirement that the HUBZone member of a joint venture take sole responsibility for meeting the applicable limitations on subcontracting.  This requirement, which doesn’t apply to joint venturers in other socioeconomic programs, is unfair to HUBZones, and at odds with SBA regulations.

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Handling a Protest with Kid Gloves: GAO Questions Army’s Domestic Leather Requirement

In these cold winter months, gloves with touchscreen capabilities are all but essential. Recently, the Army sought to procure touchscreen-compatible combat gloves, but required that all goatskin leather used for the gloves be “100% Domestic” in accordance with the Berry Amendment.

In Mechanix Wear, Inc., B-416704 (Nov. 19, 2018), however, GAO sustained a protest against this requirement because the item being procured was subject to a Berry Amendment exception. 

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Supreme Court Could Limit Agency Power

Monday, the U.S. Supreme Court decided to hear a case that could have far reaching implications in agency law—including for government contractors. The Court granted certiorari to a case that could greatly diminish the amount of deference given to agencies interpreting their own regulations. 

For contractors, a Supreme Court decision to curtail agency deference could lead to increased success rates in bid protests and other disputes.  

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SmallGovCon Week in Review: December 3-7, 2018

The first week of December went by in a flash. Santa Claus will be here before you know it; hopefully you’ve all been very good this year!

In this week’s edition of the SmallGovCon Week In Review, data and cloud computing continue to be hot topics, GAO looks at post-disaster contractor performance, and we see the lengths the DEA is willing to go to have clean floors.

Have a great weekend!

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Limitations on Subcontracting: DoD Issues Comprehensive FAR Deviation

Earlier this week, the FAR Council issued a proposed rule to conform the FAR to the SBA’s regulation governing limitations on subcontracting.  But the DoD isn’t waiting around while the FAR Council finishes the process.

The DoD has issued a comprehensive FAR deviation, effective immediately.  The DoD’s FAR deviation will, effectively, temporarily conform the DoD’s use of the FAR to the SBA’s regulation while the FAR Council works on a final rule.

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Don’t Rely on Auto-Generated EPDS Filing Emails, says GAO

Earlier this year, GAO unveiled its new Electronic Protest Docketing System (“EPDS”) for bid protests. EPDS serves as the central filing system for all bid protests pursued before GAO. As a courtesy, EPDS will automatically generate a courtesy email notice anytime a new document is filed with GAO.

In a recent Request for Reconsideration, however, GAO was asked to reconsider its dismissal of a protest after the protester failed to receive the automatically-generated EPDS notice that the Agency Report had been filed. GAO held that the protester in question couldn’t rely on its failure to receive the email to avoid the ordinary timeliness rules applicable to GAO bid protests.

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Limitations on Subcontracting: FAR Council Finally Proposes Rule Change

For small government contractors, the disconnect between the SBA’s updated limitations on subcontracting rule and the FAR’s outdated rules has been very confusing.  For more than two years, the FAR and SBA regulation have used different formulas to determine compliance, and the SBA rule–but not the FAR–allows the use of “similarly situated entities” on small business set-asides and 8(a) contracts.

This has created major headaches for small businesses, who have had no definitive answer to what should be a simple question: “which rule do I follow?”  Now, finally, there is some important progress to report in clearing up this discrepancy: yesterday, the FAR Council issued a proposed rule to update the FAR’s limitations on subcontracting provisions and conform them to the SBA’s rule.

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