Weekly Update for Government Contractors and Commercial Businesses– July 8, 2022

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GOVERNMENT CONTRACTS

Federal News Network Quotes PilieroMazza’s Cy Alba on Re-Release of Polaris RFP, Cy Alba, 07.06.22
Cy Alba, a partner in PilieroMazza’s Government Contracts Group, recently discussed the re-release of the Polaris request for proposals (RFP) with Federal News Network. Potentially worth tens of billions of dollars, the small business governmentwide acquisition contract for IT services has drawn close attention from government contractors, with seemingly endless updates to the RFP. After a nearly two-month pause on bid submissions, the General Services Administration re-released the solicitation on June 30, 2022, with updated relevant experience requirements. Read more here.

Temporary 504 Express Loan Authority for Certified Development Companies Participating in the Accredited Lenders Program
A Small Business Administration (SBA) interim final rule has implemented additional authority that the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act temporarily provides to Certified Development Companies participating in the Accredited Lenders Program with respect to 504 loans that are not more than $500,000 and that are not made to a borrower in an industry with a high rate of default, as defined by SBA. Effective as of June 27, 2022, the rule applies to loan applications submitted to the Certified Development Company on or after June 27, 2022, and approved by the Certified Development Company and SBA through September 30, 2023. Comments are due August 26, 2022. Read more here.

An SBA Team Targets Set-Aside Contracts Awarded to Ineligible Firms
The Small Business Administration Office of Government Contracting and Business Development has rolled out a series of new reforms to ensure contracting opportunities are reaching small businesses. The reforms stemmed from reports indicating that small and minority organizations were disproportionately falling out of the federal government’s shrinking vendor base compared to larger firms. Read more here.

FY 2023 Procurement Management Review Schedule and Call for Volunteers
The Defense Contract Management Agency will lead independent Procurement Management Reviews (PMRs) of each Fourth Estate component that performs contracting operations. The reviews will assess the effectiveness of the contracting function, analyze and assist in any problem areas, and identify noteworthy practices that may be beneficial to all organizations. Read more here.

Streamlining and Modernizing the 7(a), Microloan, and 504 Loan Programs to Reduce Unnecessary Regulatory Burden
A Small Business Administration (SBA) final rule will remove or revise various business loan program regulations that are obsolete, unnecessary, ineffective, or burdensome. The final rule will also make technical amendments to incorporate recent statutory changes and other non-substantive changes. The rule will be effective August 1, 2022. Read more here.

GSA and NGLCC Collaborate to Expand Support for LGBTQI-Owned Businesses
The General Services Administration (GSA) and the National LGBT Chamber of Commerce have signed a memorandum of understanding (MOU) that aims to enhance access to GSA contracting opportunities for LGBTQI-owned small businesses. Through the MOU, the two organizations will work together to increase awareness of GSA programs and services among LGBTQI-owned small businesses and small business owners. This will include providing information to local LGBTQI affiliate chambers of commerce around the country about GSA programs, services, and events that help small businesses learn about contracting and subcontracting. Read more here.

Upcoming Government Contracts Presentations

EVENT: Cyber Preparedness and Its Impacts on Your Bottom Line, July 13, Dave Shafer. Read more here.

EVENT: Mentor Protégé Programs, July 14, Tony Franco. Read more here.

WEBINAR: FCA Implications for M&A Transactions, July 26, Cy Alba and Matt Feinberg. Read more here.

WEBINAR: Small Government Contractors and the FCA: Is More Enforcement on the Horizon? August 31, Jackie Unger and Matt Feinberg. Read more here.

WEBINAR: Protecting Your Confidential Information: FOIA Exemption 4 for Government Contractors, September 15, Kevin Barnett. Read more here.

BUSINESS & TRANSACTIONS

PSC Submits Proposed Rule Comments to SEC Leadership
The Professional Services Council (PSC) submitted comments to the Securities and Exchange Commission (SEC) on two recent sets of proposed rules that have critical implications for federal contractors supporting the federal government’s missions. Among other items, PSC urged the SEC to research, leverage, and if necessary, build upon existing reporting requirements in any final rule rather than create duplicative ones that add to a company’s compliance costs without offering novel data or information. PSC also noted that the SEC should make every effort to limit climate-related disclosure requirements to information that is material to investors’ decisions. Read more here.

LITIGATION & DISPUTE RESOLUTION

Construction Company Owner Convicted of Fraud in Securing More Than $240 Million in Contracts Intended for Service-Disabled Veteran-Owned Small Businesses
A federal jury convicted the owner of several companies in the construction industry for his role in a long-running scheme to defraud the United States. According to court documents and evidence presented at trial, Michael Angelo Padron, along with co-conspirators Michael Wibracht and Ruben Villarreal, conspired to defraud the United States to obtain valuable government contracts under programs administered by the Small Business Administration. The evidence showed that Padron conspired to install Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his co-conspirator and business partner Wibracht, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control to secure over $240 million in government contracts that were set aside for SDVOSBs to benefit their larger, nonqualifying businesses. Read more here.

Upcoming Litigation & Dispute Resolution Presentations

WEBINAR: FCA Implications for M&A Transactions, July 26, Cy Alba and Matt Feinberg. Read more here.

WEBINAR: Small Government Contractors and the FCA: Is More Enforcement on the Horizon? August 31, Jackie Unger and Matt Feinberg. Read more here.