SBA Size Standards Under the Microscope
?SBA’s size standards are one of the agency’s most important metrics. The size standards draw a bright line between small and large businesses for each industry by NAICS code. A firm that is below the size standard for its industry is eligible to pursue federal contracts and programs reserved for small businesses. And small businesses are also exempt from other rules that would otherwise apply to federal contractors. So how and where SBA draws the size line for each industry . . . Read More
Transactional Data Reporting: Brave New World
By Katie Flood As part of its Category Management initiative, the U.S. General Services Administration (“GSA”) has piloted the Transactional Data Reporting rule (“TDR”), which is meant to provide a greater degree of transparency into the federal and commercial marketplace practices of GSA Schedule contractors. The TDR is meant to remove burdensome tracking and reporting supplier requirements from the Price Reductions Clause (“PRC”) and Commercial Sales Practices (“CSP”), as contractors will now be required to report data on a transactional . . . Read More
2016 GAO Bid Protest Annual Report: Sustain Rate Hits Nine Year High, Up More Than 10 percent from 2015
By Megan Connor This article originally appeared in the First Quarter Legal Advisor. GAO recently released its annual report to Congress, which included data concerning its protest filings for the fiscal year 2016. Based on the data, 2016 was a historic year. GAO not only decided more cases on the merits in 2016 than in any prior year, dating back to 2001, but it also sustained more cases in 2016 than in any year during that same period. It is . . . Read More
Small Business Valuation — What Is It And Why Does It Matter?
By Michael A. de Gennaro Government contractors who have built successful businesses over a period of time often neglect to answer one simple question until very late in the game. The question, “What is my business worth?” has far-reaching implications and comes up in a number of scenarios, such as the sale of the contractor’s business, the creation of long-term incentive plans for employees, estate/business succession planning, and death/divorce of an owner. At least monthly, we receive a call from . . . Read More
Keep an Eye Out for Identity of Interest Affiliation
By Julia Di Vito Anyone who does business with a small business government contractor will always want to be aware of any potential bases for affiliation that might arise. However, the so-called “identity of interest” affiliation, as described in 13 C.F.R. § 121.103(f), is a particularly easy type of affiliation for a firm to have and not even realize it. It is important to be aware of the way identity of interest affiliation can be found and how to avoid . . . Read More
2016 Saw Rise in False Claims Act Actions and Recoveries
By Ambi Biggs The U.S. government and whistleblowers brought an increased number of False Claims Act (“FCA”) cases – as well recovered a larger amount in settlements and judgements – in the fiscal year 2016, as compared to 2015. In 2016, the U.S. Department of Justice recovered $4.7 billion in settlements and judgments, the third highest annual recovery ever for the department in the FCA’s history. Under the FCA, anyone who knowingly presents a false or fraudulent claim to the . . . Read More
Key Issues for Due Diligence of Government Contracts – Part II
By Kimi Murakami In a recent blog post, I highlighted key issues to be analyzed when performing due diligence on a target company that performs government contracts. In addition to the review of government contracts, comprehensive due diligence review of any target company should also include evaluation of five other broad categories relating to general business matters discussed below as part II of key issues to be considered when performing due diligence in M&A transactions for government contractors. 1. . . . Read More
Expert Witness Testimony: Often the Critical Component for a Successful Case
If your company is facing litigation, especially in high-stakes cases, one of the first questions you and your counsel should address is whether the testimony of an expert witness might be helpful, or even essential, to your case. Expert witness testimony comes into play, as stated in Federal Rule of Civil Procedure 702, whenever “the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue.” Whether . . . Read More
Court of Federal Claims Applies a 150 Employee Size Standard to ITVAR Non-Manufacturers
The Court of Federal Claims (“Court”) has issued a bid protest decision which stated, in apparent dicta, that a concern must satisfy a 150-employee standard under the Information Technology Value Added Resellers (“ITVAR”) exception to NAICS code 541519 as opposed to the 500-employee size standard which a concern usually must meet to qualify as a small business under the requirements of the “non-manufacturer rule” (“NMR”). York Telecom Corp. v. United States, No. 15-489 (Fed. Cl. Jan. 11, 2017). According to an SBA . . . Read More
Key Issues for Due Diligence of Government Contracts – Part I
By Kimi Murakami Comprehensive due diligence review of any target company is imperative when determining whether to buy another company. Layer on the fact that the target company has government contracts then several unique issues must also be critically evaluated when performing due diligence. Failure to do so could result in a significant loss in value of the target – and its contracts – after the acquisition has closed. What follows is a list of certain key issues that should . . . Read More