Weekly Update for Government Contractors and Commercial Businesses – October 22, 2020

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BUSINESS & TRANSACTIONS

BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: Post-Transaction Pitfalls—Part 3 of a 3-Part Series, October 16, 2020, Kathryn Hickey and David Shafer
M&A transactions involving government contractors are subject to a host of regulatory and industry-specific considerations. This blog series covers key concerns that can impact a deal. Parts 1 and 2 focus on common problems that arise before and during a transaction. They are available here and here. Part 3 drills down on post-transaction pitfalls in government contractor M&A deals that can jeopardize the value of the target company. Read more here.

BLOG: 8 Tips to Manage Risks in Healthcare Transactions, October 15, 2020, Frank Massaro
In a typical investment or acquisition, the buyer conducts due diligence of the target company. Due diligence involves extensive review of the target company’s history, finances, and operations, including its contracts, customer and supplier relationships, and employees, to understand the risks and opportunities associated with the investment or acquisition. Healthcare companies have their own unique requirements and structures, so a buyer’s due diligence must consider and thoroughly evaluate these additional factors to mitigate the buyer’s risk post-closing. Read more here.

Upcoming Business & Transactions Presentations

WEBINAR: Mergers and Acquisitions in Healthcare: Getting Your House in Order, November 11, 2020, Kathryn Hickey. Read more here.

WEBINAR: Capture Planning: Go To Market Strategies, November 20, 2020, Cy Alba. Read more here.

GOVERNMENT CONTRACTS

CLIENT ALERT: PilieroMazza Summarizes SBA’s Final Rule on Mentor-Protégé Programs, October 16, 2020, Pamela Mazza and Peter Ford
The Small Business Administration (SBA) issued its final rule making changes to its rules on joint ventures, the mentor protégé program, the Section 8(a) program, and much more. In developing this final rule, SBA reviewed and considered the many comments it received, and PilieroMazza believes that the final rule makes many positive changes that will simplify its procedures for small businesses, particularly 8(a) program participants. This post summarizes major changes in the final rule. If you have questions concerning SBA’s final rule on its Mentor Protégé Programs, please register for our webinar on October 28, 2020, at 2 PM ET, where SBA’s John Klein and PilieroMazza’s Pam Mazza and Peter Ford will examine the rule changes and its implications for your business. Read more here.

BLOG: SBA Adopts Critical Rule Change on Small Business Recertification: Tweaking Its “Technical Correction”, October 16, 2020, Samuel Finnerty
On October 16, 2020, SBA enacted a final rule that merges the 8(a) Business Development Mentor-Protégé Program and the All Small Mentor-Protégé Program and makes a number of other significant changes that impact the small business contracting community. One modifies SBA’s recertification rules and will directly affect a contractor’s ability to pursue options and orders set aside under pre-existing contracts. Read more here.

CLIENT ALERT: WOSB Certification Required Beginning October 15 – Are You Ready? October 14, 2020, Meghan Leemon
As of October 15, 2020, all women-owned small businesses (WOSB) and economically disadvantaged women-owned small businesses (EDWOSB) pursuing WOSB / EDWOSB set-asides, as well as solicitations with pools reserved for WOSBs / EDWOSBs, must be certified as a WOSB / EDWOSB, either by SBA or a third-party certifier. The application for certification by SBA is free and may be completed at beta.certify.sba.gov. Beginning October 15, if you have not completed the certification application, this will impact your ability to bid on WOSB / EDWOSB set-aside contracts. Read more here.

PODCAST: Exiting the Valley of the Shadow of Death: Growth Strategies for Small Businesses Moving to Mid-Tier, October 13, 2020, Cy Alba
In this episode, PilieroMazza Partner Cy Alba sits down with Sharon Heaton, Founder and CEO of sbLiftOff, to discuss growth strategies for small businesses seeking to maintain their size or move to the mid-tier. Read more here.

NASA’s SEWP Sees 40% Spending Increase in 2020
Federal Computer Week reported that one of the federal government’s largest multiple award contracting vehicles, the National Aeronautics and Space Administration’s (NASA) Solutions for Enterprise-Wide Procurement (SEWP), had major spending increases as compared to last year. The total spending for fiscal year 2020, according to SEWP, topped spending for fiscal year 2019 by almost 40%. 

DOD Officials See ‘Troubling’ Small Business Decline Since COVID-19
Defense News reported that, over recent months, the U.S. Defense Logistics Agency has awarded hundreds of millions of dollars in contracts for the federal response to the coronavirus pandemic, but the contracts are not necessarily benefitting the Department of Defense’s (DOD) usual vendors. In fact, the DOD contracting arm is seeing fewer small businesses, from its traditional supplier base, competing for contracts in the wake of the coronavirus pandemic. Read more here.

Top Management and Performance Challenges Facing SBA in Fiscal Year 2021
The SBA’s Office of Inspector General released a report examining management and performance challenges facing the SBA in Fiscal Year 2021. Though the report discusses several challenges and issues, SBA’s management of the COVID 19 stimulus is the greatest overall challenge facing the agency. Read more here.

Schedules Consolidation – An Integrated Commercial Services Marketplace
The Coalition for Government Procurement reported that the General Services Administration’s (GSA) Schedules Consolidation initiative continues to proceed quickly, with the agency and its contractors implementing Phase 3 of the Schedules Consolidation, which involves the consolidation of multiple schedule contracts into a single contract for those impacted contractors. Read more here.

GSA Releases MAS Contractor Assessment Reference Guide
GSA’s Multiple Award Schedule (MAS) Contractor Assessment Reference Guide is now available. The reference guide provides a foundational and transparent understanding of the MAS Contractor Assessment process for GSA’s industry partners. Read more here.

FPDS Transitions to beta.SAM.gov
The Federal Procurement Data System (FPDS) transitioned to beta.SAM.gov. Contract data reports are now available there. Read more here.

DOD to Streamline Software Development
National Defense Magazine reported that DOD leadership signed a new policy to guide the military’s software development and streamline acquisition processes. The software acquisition pathway is one of the six pathways included in the new Adaptive Acquisition Framework, which tailors each pathway to the unique characteristics of the capability being acquired. Read more here.

Court Clarifies Timeline in JEDI Case
Nextgov reported that, according to court filings detailing the case’s schedule, DOD’s Joint Enterprise Defense Infrastructure (JEDI) cloud computing contract—won by Microsoft and legally challenged by Amazon Web Services—will be tied up in court for at least the next few months. Read more here.

Proposed Rule Would Update Definition of Commercial Item
DOD, GSA, and NASA published a proposed rule that would amend the Federal Acquisition Regulation to change the definition of “commercial item.” Comments are due December 14, 2020. Read more here.

18F Guide Outlines Common Reasons Why Agency IT Projects Fail – And How to Avoid Them
Federal News Network reported that out of all the large IT modernization projects taking place in government, only about 13% of them actually succeed. To keep this work from losing steam, 18F, the digital services office within GSA, has released a de-risking guide that pinpoints common areas of risk for agile software development. Read more here.

Upcoming Government Contracts Presentations

WEBINAR: PCI Subcontracting Summit 2020: Purchasing Systems, October 27, 2020, Cy Alba. Read more here.

WEBINAR: Other Transaction Authorities (OTA), October 27, 2020, Peter Ford. Read more here.

WEBINAR: SBA’s Final Rule on Mentor-Protégé Programs: Key Changes for Government Contractors, October 28, 2020, Pamela Mazza and Peter Ford. Read more here.

WEBINAR: Understanding and Avoiding Affiliation Under Small Business Contracting Programs, November 12, 2020, Tony Franco. Read more here.

WEBINAR: Succeeding in Government Small Business Contracting: Guidance for Primes and Subs, November 17, 2020, Cy Alba. Read more here.

WEBINAR: Most Common Pitfalls for SDVOSB and HUBZone Firms, November 17, 2020, Cy Alba. Read more here.

WEBINAR: PCI Subcontracting Summit 2020: Administration, November 24, 2020, Cy Alba. Read more here.

CYBERSECURITY & DATA PRIVACY

Federal Contractors Argue Cyber Insurance Is Not a Safe Bet for Better Security
Nextgov reported that a broad range of federal contractors fear a watchdog report on the government’s role facilitating coverage of cybersecurity risks will lead to a mandate that their companies hold related insurance policies. Read more here.