Preserving the Attorney-Client Privilege when Conducting an Internal Investigation
You may recall that, back in July 2014, we advised that the D.C. Circuit Court of Appeals had overturned a D.C. District Court decision in a False Claims Act case that required the results of an internal investigation, which the investigating company had asserted were protected by the attorney-client privilege, to be turned over to the whistleblower’s counsel. The trial court had supported its decision against the application of the privilege by, among other things, pointing out that the employees that had been interviewed—by non-attorneys—had not been told that the interview was being conducted for the purpose of obtaining or providing legal . . . Read More
Paid Sick Leave for Federal Contractors is One Step Closer to Reality
By Corey Argust For employers, it seems like every time you turn around there is a change in the law or regulations to add to the list of compliance challenges. Federal contractors can now add paid sick leave to that list. On February 25, 2016, the Department of Labor (“DOL”) released its proposed rule for providing employees working on federal contracts with sick leave. The proposed rule would implement Executive Order 13706, which President Obama signed on September 7, 2015. . . . Read More
CFIUS Annual Report Shows Items of Interest for Government Contractors
By Kimi Murakami The Committee on Foreign Investment in the United States (“CFIUS”) recently issued its Annual Report to Congress regarding transactions that they reviewed during 2014. Below are highlights of trends and issues gleaned from the report, as well as a few best practices that contractors performing work for the U.S. federal government may find interesting regardless of whether your business may soon be the target of a non-U.S. buyer. What is CFIUS? To guard against foreign investment that . . . Read More
WOSBs: $17.8 Billion in FY15 Spending and MORE NAICS Codes!
By Megan Connor On March 2, 2016, SBA announced that federal government spending in FY 2015 met the 5% spending goal for WOSBs. According to the SBA, 5.05% or $17.8 billion of all federal small business eligible contracting dollars were awarded to WOSBs. This is the first time in the history of the WOSB Program that the goal has been met. This great news was then followed on March 3, 2016 , by SBA’s publishing of updated NAICS codes list for EDWOSB and WOSB set-aside and sole source contracts, . . . Read More
Kingdomware Oral Arguments—Remand to Lower Courts Is a Possibility
“Yeah, it’s a contract,” conceded Department of Justice (“DOJ”) attorney Zachary Tripp during recent oral arguments in Kingdomware Technologies Inc. v. United States. According to Tom Saunders, attorney for Kingdomware, that concession should begin and end the case currently before the Supreme Court on the issue of whether the Department of Veterans Affairs (“VA”) is required to set-aside awards for Veteran-Owned Small Businesses and Service-Disabled Veteran-Owned Small Businesses when ordering from the Federal Supply Schedules (“FSS”). Unfortunately for Kingdomware—and the . . . Read More
Five Reasons to File a Size Protest
Small business government contractors are sometimes resistant to the idea of filing size protests against their competitors. How much time and effort will it take? Is there enough evidence? Will the agency be offended? These are the types of questions that small business owners often ask themselves in deciding whether to challenge the size status of an apparent awardee and, in some instances, the answer to any one of them may justify a decision not to file a size protest. . . . Read More
Time for A Check Up of Your Firm’s Compliance with Government Contracting Standards
Some of you may recall that, back in the 1970s, the legendary actor John Wayne appeared in public service announcements urging people to undergo a “check-up.” Now that the New Year has begun, it is a good time for small government contractors to undertake a “check-up” of their government contracting representations and certifications, as well as ethical compliance programs, to make sure they are still up to date. To begin, firms that pursue federal small business set-aside procurements should review, . . . Read More
SBA Closes the Door on Resellers of Major Commercial Software
On January 26, 2016, SBA issued its final rule regarding proposed size standard increases to numerous NAICS codes, but one thing that could impact many IT contractors is the new requirement and/or clarification from SBA that IT Value Added Resellers (“ITVAR”) under the footnote/exception to NAICS Code 541519 do have to comply with the nonmanufacturer rule when reselling software under that code. This change does not impact those ITVAR contractors who perform on contracts where the largest portion, by dollar . . . Read More
The SBA’s Final Rule on the 8.73 Percent Inflationary Adjustment to the Monetary-based Size Standards can be Confusing
On January 25, 2016, the Small Business Administration (“SBA”) issued a final rule, effective immediately, adjusting the monetary-based size standards for inflation by 8.73%. While this final rule may suggest that the size standards have been increased again following the increase that went into effect in 2014, it actually reflects the same adjustment the SBA made in 2014, when an interim final rule was issued increasing the size standards. Thus, firms interested in pursuing set-asides under the revenue-based size standards . . . Read More
Creativity and Controlled Risk: A Recipe for a Successful M&A Transaction
One prevailing theme in merger and/or acquisition (M&A) transactions is risk allocation. How much risk is either the buyer or seller willing to assume? And, separately, what level of risk must either party assume in order to get the deal done? Assuming neither party has all the negotiating leverage, both parties will need to take on some amount of risk. There is a life adage that says “time heals all wounds.” In M&A transactions, however, the opposite is true; and, . . . Read More