SBA Scorecard: Largest Small Business Federal Contracting Year, Some Goals Missed

It’s that time of year again! The time of year that all federal government contractors wait for with bated breath to see how well agencies performed in relation to their small business subcontracting goals (or at least how well the metrics show them to be doing). Time for the SBA’s Annual Scorecard. Ok, so maybe it’s not quite that hyped up. But it is informative, nonetheless. And for 2023, it looks like things are looking up with every category making gains from the previous year. Once again, government-wide performance earned an overall score of an “A” by achieving 109.13% of its goal coming in with a whopping $178.6 billion spent with small business contractors.  

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Clearing Things Up? A Quick Look at the Proposed Plain Language in Contracting Act

In 2010, Congress passed the “Plain Writing Act,” which essentially requires that federal agency communications to the public must be in language that “the public can understand and use” and is “clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience.” In other words, the idea was that agencies should stop using so much jargon and legalese. However, this arguably didn’t apply to contract opportunity notices. Congress is now looking at making sure that omission changes with the proposed “Plain Language in Contracting” Act, at least with regards to small business set-asides. We explore this more in depth in this post.

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SmallGovCon Week in Review: April 22-26, 2024

Good day and happy Friday! We hope you had a very productive week and are looking forward to the weekend. We have been, and will be, receiving some much-needed rain, so outdoor weekend activities might be a bit hit or miss here. It’s wonderful weather for all those recently planted gardens, however, as long as the storms aren’t bad!

In federal government contracting news this week, be sure to check out the stories about the new sustainability rules (and our recent blog), as well as new legislation on solicitation language and buying technology.

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Contracting While Impaired: Court Rejects Overbroad Finding of OCI Based on Impaired Objectivity

Contracting agencies, and contractors, must always be aware of potential organizational conflicts of interest (OCIs). An OCI can result in a contractor being kicked off a federal procurement. One type of OCI is an impaired objectivity OCI, typically resulting from a contractor evaluating its own offer or its own performance. In a recent decision, the United States Court of Federal Claims (COFC) said that an agency was overly cautious in rejecting an offeror based on a perceived OCI.

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New FAR Final Rule Promotes Sustainability

As many know, a prominent goal of President Biden’s administration has been to promote green initiatives, and help reduce America’s carbon footprint. That initiative has now found its way to federal contracting. In a recent final rule, the FAR is being updated to facilitate federal contracting’s move, closer to net-zero emissions. This FAR update, updates and sets requirements for agencies to procure “sustainable products and services”, outlines what those products and services actually are, and places new expectations on contractors.

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Beyond Tax Returns: Federal District Court Says Contractors Must Include Information Outside Tax Returns in Calculating Size

When it comes to calculating a company’s receipts for size purposes, the procedure for is (or at least was) pretty simple: Look at the company’s tax returns. Indeed, it has long been SBA’s position that they can only consider tax returns, as noted in Nordstrom Contracting & Consulting Corp., SBA No. SIZ-5891 (Mar. 7, 2018) (“[T]here is no authority for an area office to consider any evidence apart from tax returns…when calculating a firm’s average annual receipts.”) among other cases.  In other words, if something was not mentioned in a tax return, it couldn’t be considered by SBA. The only exception was if the tax returns were not filed, in which case SBA will review financial statements or similar information in lieu. 13 CFR § 121.104. Therefore, other than that exception, a contractor only needs to rely on the information in its tax return when making its size representation.

But the U.S. District Court of the District of Columbia (DDC) thinks otherwise. On May 18, 2023, it entered a decision on opposing motions for summary judgment in a size protest that had become a False Claims Act case. In this decision, it concluded the opposite: Contractors must in some cases consider information outside their tax returns. Let’s take a deeper dive.

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SmallGovCon Week in Review: April 15-19, 2024

Happy Friday everyone! Here in the Midwest we are enjoying some nice spring weather. But along with the beautiful flowers comes the allergies for some folks. In contracting news this week legislators in Washington have been working on bills in an attempt to make it easier for small businesses to work with the government and there is continued movement on cybersecurity for federal contractors. You can read more about that in the articles below as well as other contracting news.

Have a great weekend.

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