The Large Business Runway Extension Act: For Some Contractors, New Five-Year Size Period Will Backfire

Posted on December 17, 2018 by Steven Koprince

The House and Senate have passed the “Small Business Runway Extension Act of 2018,” which appears poised to become law in the coming days. The bill would amend the SBA’s small business size rules to use a five-year average, instead of a three-year average, in calculations using receipts-based size standards.

The purpose of the bill is to help contractors avoid becoming “other than small” following a period of quick growth, but not all companies will benefit. For companies with declining revenues, the bill may backfire, causing those companies to be stuck as large businesses longer.

GAO: Agency Conducted Price Realism Analysis and Misled Protester

Posted on December 14, 2018 by SmallGovConContributor

Unless a solicitation for a fixed-price contract provides that the agency can conduct a price realism analysis, it can’t. Even so, agencies sometimes perform this analysis without alerting prospective offerors of the possibility.

If they do, however, the ground is fertile for a protest.

SmallGovCon Week In Review (December 10-14, 2018)

Posted on December 14, 2018 by SmallGovConContributor

I wanted the pithy introduction to this week’s Week In Review to be a corny Christmas-themed joke. But there’s one problem: I don’t know any! (My dad jokes tend to come on the fly.)

If you know any (clean) holiday jokes, send them our way. We’ll try to feature them in next week’s edition!

But for this week’s edition, let’s focus on government contracting. We’ll look at the potential Christmas shutdown, GSA’s consolidation of schedule contracts, a VA-pilot program for facility construction, continuing non-compliance and oversight issues, GAO’s report on noncompetitive contracts, and more.

Have a great weekend!

Bill Changes Size Determination Measurement Period from Three Years to Five

Posted on December 13, 2018 by SmallGovConContributor

With the stroke of a pen, Congress may have just paved the way for some soon-to-be large businesses to remain small for longer.

Both the House of Representatives and the Senate have passed a bill that would amend the Small Business Act to change the period of measurement used to determine the size of a business from three years to five. The bill awaits the president’s signature to become law.

HUBZone Joint Ventures: FAR Council Gets It Wrong

Posted on December 13, 2018 by Steven Koprince

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.

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

Posted on December 12, 2018 by SmallGovConContributor

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.

Supreme Court Could Limit Agency Power

Posted on December 12, 2018 by SmallGovConContributor

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.