2016 New Year’s Resolutions
January 4, 2016
Reassess Your Size Status, Update Your DSBS and SAM Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings
Happy New Year! The start of a new year is a time for New Years Resolutions. Here are several we strongly urge you to follow-through on early in 2016.
1. Reassess Your (and Any Subcontractors) Small Business Size Status: Most companies operate on a calendar year for tax reporting purposes. For such companies the start of a new tax year, and the end of the prior year, means a change and forward adjustment of the three-year period used to calculate a companys average annual receipts (AAR) for size determination purposes. See our prior blog article on this topic here. Thus, effective January 1, 2016, companies that have been calculating their size based upon 2012-2014 receipts are required, for the first time, to start using 2013-2015 receipts. Obviously, and depending upon the companys receipts last year (tax year 2015) vs. 2012, this change alone could change a companys size status eligibility. Moreover, there have been significant changes in size standards over the past two years as a result of (i) SBAs ongoing industry-by-industry review and increases to many size standards, and (ii) SBAs Interim Final Rule issued in June 2014, adjusting all monetary-based size standards for inflation over the prior five years (previously discussed here). A size status review is particularly important this year, not only to ensure that future size certifications are correct, but also to consider whether your company might now be eligible for procurements for which you previously were too large. Please note that this review needs to consider each individual NAICS Code under which your company is listed or considering bidding. Also, check the updated status of any present or proposed subcontractors and teaming partners. While especially important for small businesses, a size status review also is important for large businesses with respect to any current or proposed small business teaming partners or subcontractors.
2. Review and Update Your Dynamic Small Business Search (DSBS) Listing: The start of a new year is also a good time for small businesses to review, and update as necessary, the companys SBA DSBS listing. This is a primary source for government agencies, and you need to ensure that your listing is accurate, up-to-date and fully reflects any new information that might help you get new work. In addition to ensuring accuracy as to your current address, phone numbers and size and any socioeconomic status representations, be sure to update your listing to include any new performance history, and new professional and industry certifications, and make sure that your keywords are comprehensive, so as to make it easy for contracting specialists to find you. You might also want to check the listings of your key competitors to see how your listing stacks up, and whether other changes might enhance your competitive status.
3. Review and Update Your SAM Listing: Once you complete the size status reassessment, you need to review and update your listings on the Governments System for Acquisition Management (SAM), at www.SAM.gov. This is necessary both (1) to ensure the current accuracy of the listed information, and (2) if you are a small business, to maintain and continue your companys small business status. Please remember that information on SAM is now deemed to be a representation and certification by you as to the current accuracy of the posted information. Both the company and you individually can be held liable for any inaccurate information. Moreover, at least annual updating is required or a small business will lose and be unable to claim small business size status until updated. On a related note, if your business address has changed, be sure to update your Dun & Bradstreet DUNS number listing, and follow-up to ensure that the changes are passed through to and show up on SAM and DSBS.
4. Review and Ensure the Accuracy and Currency of Your Past Performance Information: The start of a new year also is a good time to review the accuracy and currency of your past performance information in the Contractor Performance Assessment Reporting System (CPARS), Past Performance Information Retrieval System (PPIRS) and elsewhere, so that you can initiate efforts to correct and update this information, if needed, in advance of future procurements where such information might be key to your competitive standing and award eligibility. Once a procurement comes down to the critical evaluation and award stages, it is usually too late to impact performance ratings. This is particularly true as to missing past performance evaluations, which take time to be prepared and go through the comment and review process. If you have performed well under one or more contracts over contract performance years that ended during the past year, you should ensure that CPARS evaluations have been performed and entered, documenting your good performance, so that you can claim, and agencies can give you credit, in any new procurement. This also will ensure that you have an opportunity to reply to and explain any negative comments.
5. Update Your Employment Policies, Handbooks, Postings and Subcontract Flow-Downs: While it is always good at the start of each year to review your ethics and compliance programs, it is particularly important this year that you update your employment policies, handbooks, postings and subcontract flow-down clauses, in view of the virtual flood of new Executive Orders and implementing Department of Labor and FAR regulations over the past year, including the increased $10.15 minimum wage effective January 1, 2016, prohibitions on pay secrecy and human trafficking, expansion of the Equal Opportunity Clause to include prohibitions on sexual orientation and gender identity, changes to the rules governing individuals with disabilities, and new VETS tracking and reporting requirements, just to name a few.
There certainly are many other good resolutions you also should consider, including to keep current on new developments. 2016 is going to be very busy, as the Obama administration rushes to implement various initiatives before leaving office. However, taking the five actions listed above will position you well to move forward in 2016.
Hopewell Darneille is responsible for the contents of this Article.
© Jackson Kelly PLLC 2016