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Government Contracts Monitor

Small Business / Socioeconomic Issues

SBA Reaffirms Size Is Determined Based on the Latest Three Fiscal Years and May Consider A Later-Filed Tax Return.

The U.S. Small Business Administration (“SBA”) size regulations provide that the size of a business concern that has been in business for three or more years is based upon the average annual receipts (“AAR”) of such concern for its three most recently completed fiscal years as of the date of the concern’s self-certification.  13 C.F.R § 121.104(c)(1).  The size regulations clarify that…

SBA Increases Small Business Size Standards for 22 Industries in NAICS Sectors 48-49, “Transportation and Warehousing,” Effective March 26, 2012

The U.S. Small Business Administration (“SBA”) recently issued a new Final Rule, effective March 26, 2012, increasing the small business size standards for 22 industries in NAICS Sectors 48-49, “Transportation and Warehousing.”  Small Business Size Standards: Transportation and Warehousing, 77 Fed. Reg. 10943 (Feb. 24, 2012).  These increases will enable many formerly small companies…

SBA Increases Size Standards for NAICS Sector 54 and NAICS Code 811212, Effective March 12, 2012

The U.S. Small Business Administration (“SBA”) recently issued a new Final Rule, effective March 12, 2012, increasing the small business size standards for 34 industries and 3 sub-industries in NAICS Sector 54, “Professional, Technical and Scientific Services,” as well as for NAICS Code 811212, “Computer and Office Repair and Maintenance.”  Small Business Size Standards: Professional,…

SBA Proposes Harsher Penalties for Small Businesses that Misrepresent their Size and/or Status

On October 7, the Small Business Administration (SBA) issued a proposed ruleto strengthen penalties for small businesses that misrepresent their size and/or special socioeconomic status.  Under the proposed rule, any business that willfully seeks and receives a Federal award[1] by misrepresenting itself as a small business or a small business with special socioeconomic status[2]…

OMB Adopts New Accelerated Payment Policy for Small Businesses

The Office of Management and Budget (“OMB”) recently established a new policy requiring agencies to make payments to small business contractors as soon as possible, with the goal of making the payments within 15 days of receipt of proper documentation. Office of Mgmt. & Budget, Executive Office of the President, OMB Bull. No. M-11-32, Accelerating Payments to Small Businesses for Goods and…

SBA District Office Reviews and Reverses 8(a) Joint Venture Eligibility Determination Based on New Evidence

The SBA Washington Metropolitan Area District Office recently reconsidered and reversed an earlier favorable eligibility determination on behalf of an 8(a) joint venture where newly-obtained information during a size protest indicated that the joint venture did not comply with SBA’s 8(a) joint venture regulations at 13 C.F.R. 124.513.

  The District Office had approved the proposed 8(a)…

Contractors ignoring the SCA and misusing the 8(a) program beware …

On July 25, 2011, the United States District Court for the District of Columbia ruled that the plaintiffs in a qui tam action brought against The Kane Company (“the Company”) under the False Claims Act (“FCA”) could proceed with their suit, holding they had adequately stated a claim under the FCA and for fraud. 

United States ex rel. Anthony Head v. Kane Co., No. 05-317 (D.D.C. July 25,…

NCLN20 COFC Case Provides Cautionary Tale for Small-Business Contractors

A recent U.S. Court of Federal Claims (“COFC”) case is a veritable “horror story” of what can happen to a small-business contractor that is not fully ready to perform and that expects – perhaps based on its past experience with agency contracting personnel – that a “friendly” contracting officer (“CO”) will exhibit patience towards the contractor. Sadly, and notwithstanding the court’s…

U.S. Department Of Labor Issues Notice Of Proposed Rulemaking Concerning Affirmative Action And Non-Discrimination Against Veterans

On April 26, 2011, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a notice of proposed rulemaking to eliminate 41 C.F.R. Part 60-250, as obsolete, and replace the existing 41 C.F.R. Part 60-300 with new regulations.  These regulations implement the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (“VEVRAA”), as amended, 38 U.S.C. §…

Update: Women-Owned Small Business Program Launched

On February 4, 2011, the Small Business Administration (SBA) launched the Women-Owned Small Business (WOSB) Program. The Women-Owned Small Business (WOSB) Program allows government agencies to set aside contracts for competition among only WOSBs.

WOSBs can now learn more about the Program through SBA’s website. There are important links on the SBA’s website providing Program information including…

Legislation Equalizes All Small Businesses for Contract Set-Asides

The newly enacted 2010 Small Business Jobs Act, among other things, puts all small business categories on equal footing when competing for government contracts. Before the 2010 Act, the 1953 Small Business Act said that government agencies “shall” set-aside contract awards for small businesses in Historically Underutilized Business Zones (HUBZone), while statutes for other categories of…

Proposed Legislation Could Put Alaska Native Corporations on Equal Footing with Other Small Businesses

Alaska Native Corporations (ANCs) will no longer receive preferential treatment over other small businesses under proposed legislation from Senator Claire McCaskill (D-Mo.) and Representative Bennie Thompson (D- Ms.). If passed, this legislation will make ANCs no different than other small businesses in the Small Business Administration’s 8(a) Program, such as those owned by minorities, women,…

 

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