Recently, we looked at part of a Court of Federal Claims (COFC) decision regarding the duty of good faith and fair dealing. In that post, we observed how, unsurprisingly, the government’s insistence that a contractor carry out the express terms of a contract is not strong ground for a claim of breach of the duty of good faith and fair dealing. In this post, we’re going to continue our review of this case (with regards to the duty of good faith and fair dealing) and give more general thoughts on this duty. We’ll finish up with a third post that addresses the biggest issue in this case.
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A Look at the Duty of Good Faith and Fair Dealing (Part 1)
The duty of good faith and fair dealing in contract law is, admittedly, a bit poorly named. It does not require that a party act in bad faith to breach it. You do not need to act nefariously to run afoul of it. But then the question arises: What is it? How does one breach it? This was (among other things) a question explored in a recent Court of Federal Claims decision regarding an Small Business Innovative Research (SBIR) contract. We will look at that decision’s review of the duty of good faith and fair dealing here in a 2-part series.
Continue readingSBA to Small Businesses: Be Careful with Ostensible Subcontractors on SBIR Awards
In a recent decision, the Small Business Administration (SBA) Office of Hearings and Appeals (OHA) examined a company that received two Small Business Innovation Research (SBIR) grant awards. The SBA Area Office had determined that the awardee was not an eligible small business due to ostensible subcontractor affiliation and other reasons. This decision is an important reminder for SBIR candidates on how they should structure subcontracting teams, as SBA will examine SBIR awardee eligibility.
Continue readingCongress Reauthorizes SBIR/STTR, Adds a Few Wrinkles
Congress recently approved reauthorization of both the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The law, known as the ‘‘SBIR and STTR Extension Act of 2022’’, was ratified by the House on September 29 and became law on October 3, 2022. While the big takeaway is that the SBIR and STTR programs will continue, this post will highlight a few additional restrictions that were put into place for these important programs. Included among these are some additional reporting and oversight for companies with a lot of awards and foreign influence over companies.
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