SmallGovCon Week in Review: June 19-23, 2023

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Happy Friday and happy Summer Solstice! It’s officially summer and the temperatures here in Lawrence, Kansas sure feel like it. We have been in the 90’s this week and we are certainly grateful for air conditioning (and maybe even looking forward to winter). We hope our readers have some fun summer vacation plans and find time to rest and relax a bit this weekend. Wear your sunscreen and stay hydrated!

In federal government news this week, budget talks and the draft NDAA are being worked on, while agencies focus on cybercrime and customer experience, among other things.

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SBA Revisions to the “Two-Year Rule” for Joint Ventures: a Reminder to Read the Entire Rule

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SBA recently revised its affiliation regulations in a number of ways, some of which we have already discussed here. We have likely sounded pretty upbeat about most of SBA’s recent updates thus far, as the majority do seem to be a step in the right direction–adding clarity to SBA’s rules and furthering the policies SBA seeks to enforce. Well, not trying to rain on any parades here, but at least one of SBA’s recent regulatory updates, (at least in our humble opinion) has the potential to confuse federal contractors regarding SBA’s affiliation rules. That update revised the language in SBA’s “Two-Year Rule” for small business joint ventures–though, it really didn’t change the substance or effect of the rule, at all. Let’s take a closer look.

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Event: SBA Mentor Protege Program Webinar hosted by Texas El Paso APEX Accelerators, June 27, 10:00am-11:30am MDT

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Touted as a “game-changer” when it was first introduced in 2016, the U.S. Small Business Administration’s All Small Mentor-Protégé Program isn’t new anymore. Known now as simply the “SBA Mentor-Protégé Program,” it is still extremely powerful for large and small contractors alike.

In this course, Koprince McCall Pottroff LLC government contracts attorneys Stephanie Ellis and I will explain the ins and outs of the Mentor-Protégé Program, covering the program’s eligibility requirements, its potent benefits (including the ability to form special mentor-protégé joint ventures), the application process, and common misconceptions and pitfalls. Free Registration Link here. Hope you will join us!

Clarity is Key: An Example of Why Clear Language is Important for Showing SDVOSB Control

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While SBA has taken over SDVOSB certification from the VA (along with some other rule changes), some things remain the same. One thing which we think will never change, is that making sure the language in your agreements is clear, is vital for the federal contractor (and indeed all businesses). While this is obvious for things like operating agreements and bylaws, documentation like meeting minutes should be clear as well. In a recent appeal of a denial of SDVOSB certification, a company had to go through what must have been a frustrating ordeal that might have been prevented with just a little extra language in the meeting minutes, only to have to deal with further frustration due to a couple of details.

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SmallGovCon Week in Review: June 12-16, 2023

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Happy Friday! Monday is our newest federal holiday, Junteenth. Courtesy of History.com, Juneteenth (short for “June Nineteenth”) marks the day when federal troops arrived in Galveston, Texas in 1865 to take control of the state and ensure that all enslaved people be freed. The troops’ arrival came a full two and a half years after the signing of the Emancipation Proclamation. Juneteenth honors the end to slavery in the United States and is considered the longest-running African American holiday. On June 17, 2021, it officially became a federal holiday.

I hope you will enjoy the activities in your community. In our town of Lawrence, Kansas, there is a parade, a free concert and lots of educational events this weekend. I’m really looking forward to it! GSA published a great press release on Junteenth, that we have included below. Lots of activity in the Federal government world this week. We have included some articles that we think are of interest. Have a great weekend!

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Exception to the Rule: Evaluating Price at IDIQ Versus Order Level Is a Limited Exception

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A recent COFC decision yielded some important insights about government contracting. We already wrote about some joint venture aspects of the decision. But the decision also touched on whether GSA’s solicitation violated federal procurement law by excluding price as an evaluation factor at the indefinite delivery indefinite quantity (IDIQ) level for a procurement.

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Limitations on Subcontracting: Partial Set Asides

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Subcontracting is a hot topic in the federal government contracting world. Large businesses placing bids on federal procurements are often required to have a small business subcontracting plan, while small businesses are limited to exactly how much work they can subcontract out. The FAR and SBA rules contain the details relevant to small businesses’ limitations on subcontracting. These regulations are, in general, pretty straightforward. Well, at least when it comes to total small business set asides for one specific type of work. Further, there are a ton of resources available to help small business federal contractors understand these limits. Just googling “limitations on subcontracting” comes up with webinars, blogs, federal government sites, and even YouTube videos on the topic, but most only focus on the more general limitations. There aren’t nearly as many resources that take on the topic of partial set asides, but these limitations are important as well. In this post, I am going to walk you through how these limitations apply to partial set asides to show that contracts partially set aside for small businesses are not nearly as intimidating as they may seem.

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