Hello and Happy Friday! We hope you had great week and are finishing the week strong today. The SBA and Whitehouse announced that the current administration exceeded its small business goal with a record breaking $163 Billion in federal procurement opportunities. That’s an $8.7 billion increase from the previous year, which is great news for small businesses. You can read more about this and other newsworthy articles below. Have a great weekend.
While every federal government contractor is likely familiar with bid protests, whether directly involved in one or not, it is far less likely that those same contractors are as familiar with NAICS code appeals. This is probably due to the infrequent nature of NAICS code appeals, with roughly 20 being filed each year. However, even if so few are filed annually, they tend to have a relatively high success rate, with appeals decided on the merits being decided in favor of the Appellant about 50% of the time. Below, I will take a look at a recent NAICS code appeal to help demonstrate what the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) takes into account when reviewing NAICS code appeals, and why you, as a contractor, should review a solicitation’s classification to potentially give you a leg up.
Happy Friday! We hope you had a great week and can take time to enjoy your weekend. We’ve been receiving a lot of rain here in the Midwest lately. The rain gauge was completely full and topped out at 4 1/2″ in a 12 hour span of time, this past week. Everything outside is looking beautiful and I’m guessing there will be a lot of lawn mowing going on this weekend.
We’ve included several articles that hopefully provide some good information concerning federal government contracting this week. Enjoy your weekend!
Happy Friday and we hope you are looking forward to a nice, long weekend. Monday, May 29 is Memorial Day and an official federal holiday, but do you know when and why it was established? If not, here’s a brief history lesson.
After the Civil war, in late 1860s, Americans in various towns and cities had begun holding springtime tributes to countless fallen soldiers. In 1966 the federal government declared Waterloo, New York as the official birthplace of Memorial Day because it hosted an annual, community-wide event, during which businesses closed and residents decorated the graves of soldiers with flowers and flags. In 1968, Congress passed the Uniform Monday Holiday Act, which established Memorial Day as the last Monday in May and declared Memorial Day a federal holiday. So, now you have the background story of how this day was established. We hope you all have a wonderful weekend and here are some recent articles, including ones on a pending default, VA contracts, and small disadvantaged businsses.
13 C.F.R. § 125.6 sets out the limitations on subcontracting for all small business set-asides (including 8(a), SDVOSB/VOSB, HUBzone, and WOSB/EDWOSB set asides.) These limitations on subcontracting are crucial for any small business federal contractor to be familiar with, and we have discussed how they work here. But, while the regulation does provide for certain legal penalties for violations of these limitations, up until SBA’s recent rule change, it didn’t provide for any direct consequences for a company’s past performance (although conceivably an agency could mention limitations on subcontracting as part of a CPARS review). Furthermore, SBA now will require that compliance with the limitations be looked at on an order-by-order basis for multi-agency set aside contracts where more than one agency can issue orders under the contract, and for full and open contracts where the task order is set aside for small businesses. All this is effective May 30, 2023, and we explore these changes here.
You may have noticed that SBA issued a final rule last week that created sweeping changes to the SBA’s 8(a) Program regulations, but along with that, SBA made sure to slip in a change to the ostensible subcontractor rule that has been a sticking point for many contractors when facing affiliation concerns. With this final rule, SBA will update the regulations to provide contractors certain ways to defend against potential ostensible subcontractor rule affiliation, depending on the type of contract at issue. This represents a shift in thinking, related to how to combat allegations brought under this affiliation rule and could present some new wrinkles for contractors to consider when setting up subcontracting arrangements.
Happy Friday, Readers. We hope you have had a great week. It’s a beautiful day in Lawrence, Kansas and it should be a great weekend for Easter egg hunting if you are so inclined. We hope you can spend time with family and friends this weekend and enjoy the spring weather.
There were some important announcements in federal government contracting this week including the continued saga of CIO-SP4 and anticipation over the Oasis+ contracts. You can read more about that and other federal government contracting news in the articles below. Enjoy the weekend.