Update: SBA Proposed Rule Would Require “Rule of Two” Application to Multiple Award Contract Task and Delivery Orders (Part I)

SBA’s recently proposed rule seeks to officially broaden the reach of its “Rule of Two”–a government contracting requirement fundamental to supporting our nation’s small business infrastructure, policies, and goals. I emphasize “officially” because, even though this is technically a proposed change to SBA’s rules, it is really more of a “regulatory implementation” of judicial law than anything (don’t worry, we will go into more detail on this point later). Specially, SBA’s proposed rule would require the Rule of Two’s application to task orders and delivery orders under most standard multiple award contracts (MAC). This Part I blog will briefly explain what the Rule of Two is and detail SBA’s proposed update to it. But keep your eyes out for the soon-to-follow Part II blog on this topic. There, we will dig in deeper to the relevant history of (including the court case linked above), the sources and policies behind, and the potential implications for SBA’s proposed Rule of Two update.

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Webinar event: The SBA and DoD Mentor-Protégé Programs, December 3, 2024, hosted by Kansas APEX Accelerators

Please join us on December 3, 2024, 9:30-11:30am CST for this webinar event. Touted as a game-changer when it was first introduced in 2016, the U.S. Small Business Administration’s All Small Mentor-Protege Program isn’t new anymore. Known now as simply the SBA Mentor-Protege Program, it is still extremely useful for large and small contractors alike.

Government contracts attorney Gregory Weber and Annie Birney of Koprince McCall Pottroff LLC will explain the ins and outs of the SBA Mentor-Protege Program, covering the program’s eligibility requirements, its potential benefits (including the ability to form special mentor-protege joint ventures), the application process, and common misconceptions and pitfalls. Additionally, Gregory and Annie will provide an introduction to the even older DoD Mentor-Protege Program, which set the stage for the SBA’s program, and compare the two programs. Register here.

OHA: SBA VetCert Review of Bylaws Was too Strict

We have previously blogged on SBA OHA decisions where an applicant was denied certification in one of SBA’s socioeconomic programs because the applicant failed to meet SBA’s control requirements. (You can check out some recent posts here and here). These decisions served as friendly reminders that before submitting an application, future applicants should take a closer look at its governing documents for potential concerns SBA may raise in its review.  

A recent OHA decision, however, suggests that SBA’s strict interpretation of an applicant’s governing documents isn’t always the correct interpretation.

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SmallGovCon Week in Review: November 11-15, 2024

Happy Friday! We hope you had a great week and are looking forward to the weekend. We have had some beautiful Fall weather here in the Midwest and finally received some much needed rain. It’s hard to believe the holidays are right around the corner!

Please visit SmallGovCon often for updates on the latest information in federal government contracting matters. We truly appreciate our readers and always strive to provide helpful content. Have a great weekend!

This week in federal government contracting news included updates on what the new administration could mean for federal contracting and some great strides for small businesses such as how SBA helps all types of small businesses.

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Dialing Down: SAM Registration Not Constantly Required

As we’ve written about on the blog, protests have been decided because the offeror was not registered in SAM for the entirety of the proposal review process period. For instance, in this post, we discussed a GAO decision where GAO held that the FAR requires offerors to maintain SAM registration throughout the evaluation period, meaning from proposal submission to award of the contract. A COFC case came to the same conclusion. Well, the federal government didn’t like the result and has published an interim rule to remedy it.

In a recent interim rule effective November 12, 2024, the FAR is being updated to clarify that “the offeror must be registered at time of offer submission and at time of contract award, but would not be required to be registered at every moment in between those two points.”

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Veterans Day: Thank You for Your Service

Today, at SmallGovCon, we would like to take this opportunity to honor all the veterans and active-duty military for their service.

The first celebration using the term Veterans Day occurred in Birmingham, Alabama, in 1947. Raymond Weeks, a World War II veteran, organized “National Veterans Day,” which included a parade and other festivities, to honor all veterans. The event was held on November 11, then designated Armistice Day.

Armistice Day, commemorating the end of World War I in 1918, when major hostilities officially ceased on the eleventh hour of the eleventh day of the eleventh month. Later, U.S. Representative Edward Rees, from our home state of Kansas, proposed a bill that would change Armistice Day to Veterans Day.

Today, Veterans Day is a time to reflect on the contributions of millions of men and women who have defended their country, often enduring incredible hardship and separation from their families. It’s a moment for communities nationwide to show gratitude and respect, whether through parades, ceremonies, or personal acts of kindness toward veterans.

Thank you for your service, Veterans!

Compensation for Professional Employees and You: GAO Sustains Where Agency Doesn’t Explain Why Proposed Decreased Compensation is Reasonable

While the federal government uses wage determinations for many occupations that contractors must abide by, things are different with professional occupations such as physicians, accountants, engineers, and (yours truly) attorneys. Contractors generally have more leeway with regard to how they pay their professional employees on a given contract. But it’s not unlimited. This is something that the National Oceanic and Atmospheric Administration (NOAA) didn’t address in its evaluation for a procurement, resulting in a successful GAO protest. In this post, we’ll look at the rules here and what went wrong.

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