Jackson Kelly PLLC

Government Contracts Monitor

Small Business / Socioeconomic Issues

Be Careful: You Might Have an Ostensible Subcontractor If . . .

When a follow-on contract is set aside for small businesses or an incumbent contractor outgrows the applicable size standard, contractors often get creative. That can be a good thing. There’s nothing inherently wrong with structuring teaming arrangements to support enable proposals from eligible prime contractors. But if your arrangements run afoul of the ostensible subcontractor rule, all your…

Colorado Construction Contractor Pays $1.8 Million to Settle with DOJ

On March 15, 2016, Judge Ketanji B. Jackson of the United States District Court for the District of Columbia approved $1,769,294 in criminal penalties and forfeiture for a Colorado construction firm that pled guilty last month to conspiring to illegally obtain federal contracts set aside for small, disadvantaged businesses. At the hearing, Judge Jackson said the sentencing deal between MCC…

Hopewell Darneille to Present at DYNET 2016, Fairmont, WV -- April 27, 2016

Hopewell Darneille, of the Firm’s Washington, DC office, will be a presenter at the seventh annual Dynamic Networking for Small Business (DYNET) Conference, a federal and prime contracting event in Fairmont, West Virginia, on April 27, 2015 at the Robert H. Mollohan Research Center.

Mr. Darneille will co-present a workshop on “Teaming, Joint Ventures, Subcontracting & Mentor-Protege Agreements in…

Mentor/Protege Agreements – When Does Yours Expire; More Traps for the Unwary!

Mentor-Protege Agreements (MPAs) are a hot topic right now, as we near the Small Business Administration (SBA)’s anticipated issuance of new regulations on a possible “universal” Mentor-Protege program that would extend SBA’s current 8(a) Mentor-Protege (M/P) rules (13 C.F.R. §124.520), to other socio-economic programs.  However, as we have discussed from time-to-time, the rules governing…

SBA’s Update of WOSB Set-Aside Industries Brings Mixed News

In addition to other changes previously noted, section 825 of the National Defense Authorization Act (NDAA) of 2015 required the Small Business Administration (SBA) to conduct a new study to identify the industries in which women-owned small businesses (WOSBs) are underrepresented in federal government contracting and report its findings to Congress. SBA’s March 3, 2016 Federal Register …

VA’s Rule of Two Applies to IDIQ Contracts

Most contractors are familiar with the “Rule of Two,” which in general requires acquisitions to be set aside if the government determines that there is a reasonable expectation that offers will be received by at least two small (or service disabled veteran-owned, etc.) business concerns and that award can be made at a fair and reasonable price. But what happens if the government determines that…

How Well Do You Answer the Mail, and Are You Willing to Pay the Price of Failure?

We all know that time is of the essence in government contracting. Compliance with time deadlines is critical, and missing the same can cost you big time, whether in lost work, lost rights or worse.  A threshold issue is how you receive and respond to government communications, since it is receipt, whether by hand, mail, email or fax, that triggers your obligation to respond.  What procedures do…

Short Take: GAO Refuses to Read Limitations on Subcontracting Clause into Solicitation

Small businesses and their teaming partners often spend a significant amount of time figuring out how best to comply with FAR 52.219-14, Limitations on Subcontracting. This should come as no surprise, since the clause imposes strict requirements concerning the amount of set-aside contract work that must be performed by the prime contractor and failure to comply can render a proposal…

Short Take: SBA Confirms Last Year’s Monetary-Based Size Standards Inflation Increases

The Small Business Administration (SBA) has published a Final Rule, effective January 25, 2016, adopting, as issued, SBA’s 2014 Interim Final Rule, previously discussed here, increasing SBA’s monetary-based size standards to account for inflation since 2008.  These adjustments, which resulted in size standard increases of approximately 8.73% (rounded to the nearest $500,000), were made…

Showing a “Clear Fracture” Does Not Rebut Presumption of Affiliation Based on a Common Investments Identity of Interest

Small Business Administration (SBA) rules relating to the concept of “affiliation” can render an entity “other than small” for a wide variety of reasons. Unfortunately, as demonstrated by the recent decision of SBA’s Office of Hearings and Appeals (OHA) in Size Appeal of Tenax Aerospace, LLC, SBA No. SIZ-5701 (December 23, 2015), these rules are complex and often difficult to apply.  The …

Sole Source Awards to WOSBs Are Finally Here, But Certification Questions Remain

Year-end 2015 brought two important developments for Women-Owned Small Businesses (WOSBs), that provide new business opportunities, as well as some uncertainty, as we start 2016. First, the FAR Council issued its eagerly-awaited Interim Rule authorizing sole source awards to WOSBs in appropriate circumstances. This new authority, which is effective immediately, levels the playing field between…

Opposition Research Has Its Limits – Knowing the Facts May Not Be Enough

In order to make good decisions about whether and how to protest an award decision, disappointed bidders must, among other things, have good information about the awardee. This is particularly true where the protest grounds being considered include the argument that the winner’s proposal violated the applicable limitation on subcontracting requirement, an attack that requires a showing that the…

 

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