Ostensible Subcontractor Affiliation: Who Manages The Work Matters

So you’ve teamed with an ineligible incumbent contractor to bid on some government work and, to try and maintain continuity, the incumbent would like to retain project management functions. “No big deal,” you think, “I’ll just create a management position to oversee the project manager.”

Actually, it could be a big deal if you’re trying to avoid ostensible subcontractor affiliation. Among the four key factors for determining ostensible subcontractor affiliation is whether the management previously served with the subcontractor under the incumbent contract. And according to a recent SBA Office of Hearings and Appeals decision, creating a figurehead management position to oversee the project manager won’t negate this indicia of ostensible subcontractor affiliation.

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SBA Proposes Rules For SDVOSB/VOSB CVE Protests & Appeals

The SBA has proposed rules to enable contractors to file protests with the SBA Office of Hearings and Appeals challenging the SDVOSB or VOSB status of a company included in the VA’s CVE VetBiz database.  The same set of proposed rules would allow a contractor to appeal to OHA if the VA denies the contractor’s application for inclusion in the CVE database, or cancels an existing verification.

The proposed rules, once finalized, will offer important new protections for SDVOSBs and VOSBs and are the first official step in implementing Congress’s mandate that the SBA and VA consolidate their SDVOSB eligibility requirements.

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SmallGovCon Week In Review: September 25-29, 2017

It’s a sad day here at Koprince Law. Molly Schemm, who has been my fantastic legal executive assistant since before the firm’s doors even opened, is leaving to pursue new adventures in Alabama.  All of us here at the firm will miss Molly dearly–and we won’t be the only ones.  Molly’s warmth and professionalism have earned her many friends among our clients, too.  We wish Molly the very best.

Before the weekend begins (and Molly begins her drive South), it’s time for your weekly dose of SmallGovCon Week In Review.  In this edition, a provision commonly known as the “Amazon” amendment is garnering renewed attention, an Alabama contractor is sentenced for defrauding the government, SAM is getting a makeover, and much more.

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Release of Claims Can’t Be Undone by Refusing Government Payment

I recall sitting in a mediation one day when the mediator, a judge, told me and my client that we all have lightning in our fingers. He went on to explain that this means, once you sign a contract, it’s like magic in the sense that you can’t get out of the contract and are bound by it, absent certain exceptional circumstances.

I was reminded of this concept while reading a recent opinion from the Armed Services Board of Contract Appeals that dealt with the effect of a contractor signing a release with the government and then trying to back out of that release by refusing payment from the government.

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Thank You, Nebraska!

I am back in Lawrence after a great trip late last week to Omaha, where I gave a half-day seminar on joint venturing, teaming and subcontracting for federal government small business contracts.

Thank you very much to Veronica Doga and her team at the Nebraska PTAC for organizing the event and making sure everything ran smoothly.  Thanks also to the other sponsors for contributing their time, expertise and meals (like many things in life, in-depth seminars on government contracts always go over better on a full stomach).  And of course, thank you to all of the attendees who spent a sunny Friday morning talking about mentor-protege agreements, teaming agreements, and similar topics.  It was great to meet so many new people.

I’ll be sticking around for the next couple weeks before catching a flight to Salt Lake City for the 2017 Utah PTAC Procurement Symposium on October 11.  If you’ll be at the Symposium, please stop by the Koprince Law LLC booth to say hello.  Hope to see you there!

SmallGovCon Week In Review: September 18-22, 2017

Greetings from Omaha, where I’ve just wrapped up a great half-day training session sponsored by the Nebraska PTAC.  If you haven’t been to Omaha, you’re missing out: I’m enjoying exploring the Old Market District, and keep wondering when I’ll run into Warren Buffett.

Of course, I’m not about to let a little road trip get in the way of our weekly roundup of government contracts news. In this edition of the SmallGovCon Week In Review, we have an update on an SDVOSB fraud case that we have been following for awhile, a push to close loopholes in the Buy American Act, some promising changes for the SBA Surety Bond Guarantee program, and more.

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