White House Proposes Reforms to Increase Dollars to Underserved Small Businesses

Small businesses are often seen as the backbone of the economy. Contained within the category of small businesses are what are known as Small Disadvantaged Businesses or SDBs. Currently, the federal government has a goal to award 5% of its contracting dollars to SDBs. The White House is seeking to triple this number by 2025. The White House recently released a Fact Sheet as to how it intends to meet this goal. So, let’s dive into some of the specifics.

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Happy Holidays from SmallGovCon!

Happy eve of Christmas Eve, readers! Here’s hoping the shopping is done and the presents are all wrapped and under the tree. Even though we are living in uncertain times, there is much to be grateful for this holiday season. Thank you for all of your support this past year and thanks for letting us bring you these helpful updates and analysis about federal contracting.

With Christmas two days away and 2022 right around the corner, it’s time to enjoy the holidays, reflect on the year that was, and look forward to the challenges and opportunities ahead.

We will post our usual Week in Review after the holidays.  Until then, best wishes for a wonderful and joyous holiday season. Stay safe and well!

2022 NDAA Requires Prompt SAM Update If SBA Issues Adverse Size Determination

If, as the result of a size protest or appeal, the SBA makes a final determination that a company is not a small business, the company will be required to update SAM within two days to reflect that it is no longer small. And if the company doesn’t recertify within two days, the SBA will do the honors and update the company’s SAM profile.

This tough new requirement is part of the compromise version 2022 National Defense Authorization Act, which is likely to be signed into law in the coming weeks, although it is unclear when the SBA’s regulations will be revised to implement the change.

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SmallGovCon Week in Review: December 13-17, 2021

Hello, Readers! Can you believe we’re more than halfway through December already? The holidays are upon us! Houses are decorated with twinkling lights. There’s a chill in the air (a relief after the odd 70 degree and high winds that hit the Midwest recently). Items are flying off of store shelves. Hopefully despite all that hustle and bustle, you’re getting to enjoy quality time with your loved ones.

The hot topics in government contracting this week include some new vaccine mandate lawsuit updates, cybersecurity measures, and a push for the federal government toward clean energy and sustainability. We also have one festive topic for you – ICE is on the hunt for holiday scams. Read about these topics and more below, and for even more information and news related to federal government contracting, check out our blog.

Best of luck with those last minute holiday preparations this weekend!

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GAO Confirms that Novations Work: Agency Properly Recognized Buyer of Contract as Awardee

The Anti-Assignment Act (41 U.S.C. § 6305) prohibits the transfer of a government contract or interest in a government contract to a third party. However, government agencies recognized that contractors are on occasion bought, sold, merged, or simply encounter circumstances upon which it becomes desirable or necessary for them to assign a government contract to a third party.  

To address this issue, the Federal Acquisition Regulation (FAR) provides for a novation process to give contractors a method to transfer government contracts and not run afoul of the prohibitions in the Anti-Assignment Act. The ultimate goal of the novation process is to successfully transfer the contract and have the government recognize a new contractor as the successor-in-interest to the transferred contract.

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Agency Properly Rejected Bidder for Listing COVID-19 as a “Force Majeure” Event

For government contractors, trying to predict how COVID-19 might affect a government project can be extraordinarily challenging task. One bidder recently attempted to provide some clarity by stating, in its bid, that COVID-19 was a “force majeure event” and that the bidder would be entitled to extra time if COVID-19 affected the project.

Unfortunately for the bidder, its effort failed: the agency rejected the bid for improperly exceeding the scope of a relevant FAR clause. The GAO then confirmed that the agency had acted properly.

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