Earn-Outs in M&A Transactions: Red Flag Issues that Government Contractors Should Avoid

By Michael A. de Gennaro Government contractors who wish to grow by purchasing an existing business are aware of one simple truth:  The value of the target is linked directly to its ability to transfer its existing contracts. If there is a high risk profile—for example, if assets of the target are subject to novation in connection with the acquisition—then a purchaser is likely to seek either a downward adjustment in the purchase price or to propose deferred compensation, such . . . Read More

Understanding Government Contract Terminations

It is important for prime contractors to understand what it means if its contract with the Federal Government is terminated and what rights and obligations it has. Nearly every Government contract contains a clause allowing the Government to terminate a contract either for convenience or for default (also known as for cause). The Government may terminate your contract, or a portion of your contract, for convenience when it is in the Government’s interest. Essentially, this means that the Government has made . . . Read More

Get a Handle on Changing Leave Laws

Picking up work across states can be challenging for any employer, particularly with respect to employment law, and it’s not getting any easier. Recently, a number of states and localities are proposing and passing sick and family leave laws, each with differences, making it challenging for employers to comply with and pay for the additional benefit. States are motivated by the federal government’s failure to address paid sick and family leave broadly at the federal level. As a result, states . . . Read More

Government Asking for More Transparency on Federal Contracts Over 150K

By Dana Livne and John Shoraka For years the federal government has attempted to increase transparency in the federal marketplace and last month, U.S. Senators Claire McCaskill (D-MO) and Jon Tester (D-MT) introduced a  bill  that would require the posting online of the exact details of all government contracts worth $150,000 or more. The bill, “Contractor Accountability and Transparency Act of 2017”, seeks to implement a “machine-readable, searchable copy of each covered contract entered into by a Federal agency”.  If the . . . Read More

What Every Contractor Should Know About Requests for Equitable Adjustment

By Michelle Litteken Government contractors quickly learn to expect the unexpected. While working on a construction contract, a contractor may encounter undisclosed utility lines 15 feet underground. Or, an information technology support contractor may be asked to comply with heightened security requirements without being given a contract modification. These changes increase the cost of performance and can put a small business in a precarious position. In situations like this, many contractors file a request for equitable adjustment (“REA”), seeking additional . . . Read More

CVE Extends Verification Eligibility Period: What This Means for VOSBs

Last week, the Department of Veterans Affairs (“VA”) final rule extending the eligibility period for participation in the VA VetBiz Vendor Information Pages (“VIP”) Program took effect. The final rule extends the verification eligibility period from two to three years. For those service-disabled-veteran-owned small businesses and veteran-owned small businesses (“VOSBs”) wondering what they need to do to take advantage of an additional 12 months of eligibility, the answer is nothing.  All VOSBs listed in the VIP database as of March . . . Read More

Congress Overturns Fair Pay Safe Workplaces: GOP Deregulation Continues

Government contractors concerned over the potential impact of President Obama’s 2014 Executive Order 13673 “Fair Pay and Safe Workplaces” (EO) can breathe a sigh of relief. On March 6, 2017, the US Senate narrowly approved House Joint Resolution 37 (H.J. Res. 37), which overturns the EO in its entirety. All that remains now is for President Trump to sign the resolution into law, and with the stroke of a pen, years of debate and vitriol over the costs and constitutionality . . . Read More

The Weekly Update for November 4, 2016

DEPARTMENT OF DEFENSE Withholding of Unclassified Technical Data and Technology from Public Disclosure The Department of Defense (“DOD”) Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics has proposed a rule that establishes policy, assigns responsibilities, and prescribes procedures for the dissemination and withholding of certain unclassified technical data and technology subject to the International Traffic in Arms Regulations and Export Administration Regulations.  It applies to DOD components, their contractors and grantees, and is meant to control . . . Read More

PilieroMazza Recently Submitted Testimony to the House Small Business Committee Regarding the HUBZone Program

Our law firm represents numerous small businesses operating across the government contracting spectrum, including many businesses that participate in the HUBZone program. We are strong proponents of the HUBZone program and its important and unique place among the federal government’s small business set-aside programs. In representing many HUBZone firms, we have seen first-hand how HUBZone firms benefit from participation in the HUBZone program and, in turn, provide positive impact and many benefits to the people living in underserved communities. However, we have also seen first-hand the . . . Read More

The Weekly Update for August 5, 2016

SMALL BUSINESS ADMINISTRATION HUBZone and the National Defense Authorization Act for Fiscal Year 2016 Amendments GOVERNMENT CONTRACTS Detection and Avoidance of Counterfeit Electronic Parts Amendments Related to Sources of Electronic Parts This week’s report follows,  click here if you would like to download a copy . SMALL BUSINESS ADMINISTRATION Small Business Mentor-Protégé Programs The SBA is amending its regulations to the HUBZone Program.  The amendments: (1) authorize Native Hawaiian Organizations (“NHO”) to own HUBZone small business concerns; (2)  expand the HUBZone Program to assist small businesses in disaster areas and base closure areas; and (3) . . . Read More