Weekly Update for Government Contractors and Commercial Businesses – December 8, 2020

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BUSINESS & TRANSACTIONS

BLOG: Got Millennials? Two New Trends for Private Company Boards of Directors, December 2, 2020, Laura Sims
Recent trends in corporate governance best practices for privately held companies show a shift away from the previous view of Boards of Directors solely as a formality. Increasingly, private companies are realizing the value of boards as a powerful strategic tool to achieve a more cohesive, efficient, and valuable company. Drawing from governance and reporting requirements for public companies under the Sarbanes-Oxley Act of 2002, private companies are creating their own governance structures that mirror those of publicly traded companies, but which also allow them to specifically tailor a governance model to their individual industry, culture, and future growth goals. Below are two ways U.S. privately held companies can maximize board potential by leveraging a new type of diversity: generational diversity. Read more here.

NEWS: PilieroMazza Advises Intelligence Contractor T-Rex Solutions on Acquisition of Zot, Inc., December 1, 2020, Cy Alba, David Shafer, Francis Massaro
PilieroMazza client T-Rex Solutions, LLC—a leading IT professional services firm in Greenbelt, Maryland, helping the federal government modernize, protect, and scale its systems and data—acquired substantially all the assets of Zot, Inc., an engineering services firm serving the intelligence community. Commenting on the acquisition, Cy Alba, a partner in PilieroMazza’s Government Contracts Group, stated, “Having had the pleasure of representing T-Rex for over ten years, it has been amazing to watch the team at T-Rex grow the company. This is yet another step in that journey, and we are proud to continue to be a part of it.” Read more here.

Upcoming Business & Transactions Presentations

WEBINAR: Smart Growth in the Federal Market: How to Thrive in the Mid-Tier or Stay Small, December 15, 2020, Cy Alba. Read more here.

GOVERNMENT CONTRACTS

BLOG: DPA Use Under the Biden Administration: What a Stronger Pandemic Response Means for Government Contractors, November 23, 2020, Jon Pomerance
The Biden Administration plans to adopt a more forceful approach to the COVID-19 pandemic, which will likely include use of the Defense Production Act of 1950 (DPA). As we discussed last April, the DPA authorizes the U.S. government to compel prioritized sales and direct industrial production. For government contractors that receive orders issued under the DPA, operations and contractual obligations can be disrupted, so it is critical to know your rights and obligations under the statute. Read more here.

SBA Proposes Small Business Size Standard Revisions in Five Industrial Sectors
The Small Business Administration (SBA) is seeking public comments on a proposed rule that would revise small business size standards for businesses in five North American Industrial Classification System (NAICS) sectors to increase small business eligibility for SBA’s loan and contracting programs. The NAICS sectors reviewed in the proposed rule are: Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; and Other Services. Comments on the proposed rule are due January 26, 2021. Read more here.

SAM.gov Transition Set for April 2021
The General Services Administration (GSA) announced that on April 26, 2021, the functionalities of current SAM.gov will be integrated into the modernized beta.SAM.gov environment. Once integrated, the environment will be renamed SAM.gov and the term “beta” will be retired. Read more here.

Migrate Your GSA Advantage Catalog to MAS by March 31, 2021
The General Services Administration (GSA) published a reminder that, to be in full compliance with the Multiple Award Schedule Consolidation Mass Mod A812, contractors must complete two important steps by March 31, 2021: (1) update their catalog in GSA Advantage, and (2) update their Price List. Read more here.

SBA Amends Regulations Applicable to Small Business Lending Companies
The Small Business Administration (SBA) published a final rule amending regulations applicable to Small Business Lending Companies and Non-Federally Regulated Lenders (NFRLs) (collectively referred to as SBA Supervised Lenders). Key amendments to the regulations include a new application and review process for SBA Supervised Lenders, including for transactions involving a change of ownership or control, updates to the  minimum capital maintenance requirements, clarifying the factors SBA will consider in its evaluation of an SBA Supervised Lender application, and limiting the 7(a) lending area for NFRLs. The rule goes into effect on January 4, 2021. Read more here.

Upcoming Government Contracts Presentations

WEBINAR: The CARES Act: Highlights and Planning for the Future, December 16, 2020, Cy Alba, Nichole Atallah, Kathryn Hickey, and Matt Feinberg. 

CYBERSECURITY & DATA PRIVACY

Final CMMC Acquisition Rule Goes into Effect
CyberScoop reported that the Cybersecurity Maturity Model Certification (CMMC) rule went into effect on November 30, 2020, following the 60-day comment period. Read more here.

Assessing Contractor Implementation of Cybersecurity Requirements
The Department of Defense (DOD) published a memorandum to promote workforce awareness and understanding of the requirements of interim Defense Federal Acquisition Regulation Supplement rule 2019-D041, which implements the National Institute of Standards and Technology Special Publication 800-171 DOD Assessment Methodology, implements the Cybersecurity Maturity Model Certification framework, and requires contracting officers to take specific actions prior to awarding contracts. Read more here.

Congress Passes “Internet of Things” Cybersecurity Bill
CyberScoop reported that Congress passed legislation aimed at enhancing the safeguards of internet-connected devices—also known as the internet of things (IoT). The bill, as drafted, directs the National Institute of Standards and Technology to establish baseline security requirements for any IoT manufacturer that wishes to contract with the federal government in areas such as patching or identity management and requires contractors to implement vulnerability disclosure policies. Read more here.

Upcoming Cybersecurity & Data Privacy Presentations

WEBINAR: Solving CMMC for Small Business, December 15, 2020, David Shafer. Read more here.

LABOR & EMPLOYMENT

Class Deviation: Combating Race and Sex Stereotyping
The Department of Defense (DOD) published a class deviation that implements Section 4 of Executive Order 13950, Combating Race and Sex Stereotyping. Section 4 requires agencies to include a clause in new solicitations and resultant contracts that prohibits contractors from using any workplace training that inculcates any form of race or sex stereotyping or any form of race or sex scapegoating in its employees. The class deviation remains in effect until it is incorporated in the Federal Acquisition Regulation or otherwise rescinded. 

Review of Federal Contracting and Hiring Practices Under Executive Order 13940
The Office of Management and Budget (OMB) published a memorandum that provides guidance for conducting reviews and developing reports under multiple sections of Executive Order 13940, Aligning Federal Contracting and Hiring Practices With the Interests of American Workers. First, Sections 2(a) and (b) require agencies to review their federal contractors’ use of temporary foreign labor or off shoring practices, where contract work is moved from domestic to foreign performance. Second Section 2(c) requires agencies to review whether their federal hiring practices are compliant with U.S. citizenship requirements. Lastly, Section 2(d) requires agencies to submit a report to the OMB, which summarizes the results of these reviews and discusses any planned follow-up actions and recommendations for executive or other action. Read more here.

Upcoming Labor & Employment Presentations

WEBINAR: May the Clause Be with You: FAR 52.222-43, Price Adjustments, December 16, 2020, Nichole Atallah. Read more here.