Letter of Intent: A Seller’s Friend or Foe?
For a business owner, the sale of the company is the final act in the life cycle of the company (TargetCo). It represents the business owner’s opportunity to cash out on and be rewarded for his or her vision, ingenuity, years of hard work, sacrifice and risk-taking. Typically, after some confidential discussions and limited sharing of a TargetCo’s financial and non-financial information, a critical, next step in the sale process is negotiating and entering into a letter of intent (LOI) . . . Read More
No Longer on Hold: SBA Resumes 7(a) Lending to Small Businesses
The 7(a) lending program is back on track. Last month, President Obama signed into law a bill that would raise the SBA’s lending authorization ceiling to $23.5 billion for its flagship lending program. With the bill’s signing, the SBA resumed loan approvals and small businesses are again able to get loans backed by the federal government. On July 23, 2015—just a few days before the president put pen to paper—the SBA maxed out its $18.75 billion lending limit for small . . . Read More
Government Contractors Beware: Trying to Fit A Square Peg into A Round Hole
By Kimi Murakami What may be standard in the corporate world can severely disrupt set-aside status in the highly-regulated government contract space. Take the recently-decided case of Precise Systems. This decision presents another cautionary tale of why it is so critical for contractors to understand the SBA rules–or to talk to lawyers who do–before entering into corporate restructuring transactions. In the final decision issued by Chief Judge Patricia Campbell-Smith in the case of Precise Systems, Inc. v. U.S., No. 14-1174C (Fed. Cl., . . . Read More
Ninth Circuit Eases Ability for Whistleblowers to Bring Qui Tam Actions
In an important development under False Claims Act (“FCA”) case law, the U.S. Court of Appeals for the Ninth Circuit has expressly abrogated former precedent limiting the ability of whistleblowers to recover funds reimbursed to the Federal Government under the FCA to a greater degree than in many other circuits. The case is United States ex rel. Hartpence v. Kinetic Concepts, Inc., No. 12-55386 (9th Cir. July 7, 2015). Generally, the FCA prohibits the knowing submission to the Federal Government . . . Read More
A Look At The Numbers: 2015 Government Contracting Annual Report
Some very interesting data, trends, and analysis of government contracting, which should be of interest to government contractors, was published in a recent report by the National Contract Management Association (NCMA) and Bloomberg Government (Bloomberg). Some of the data should come as no surprise to firms seeing how U.S. government contracting dollars continue to be declining. According to the report, titled “Annual Review of Government Contracting, 2015 Edition,” contract spending will likely continue to fall due to budget caps and the . . . Read More
The Importance of Preservation of Electronically Stored Information in Contract Disputes
Contract disputes, whether over performance, payment or interpretation of terms, are an inevitability of doing business and, in an ideal world, when they arise they would all be resolved through compromise and agreement. But we do not live in an ideal world, and contract litigation appears to be on the uptick as the economy improves. Whereas in the “old days” the largest part of your contract file might have been taken up by the contract itself, the Information Age has . . . Read More
False Claims: A Growing Concern when Doing Business with State & Local Governments
By Michelle Litteken Imagine that you are at your desk reviewing emails when your phone rings. It is a prosecutor from the state attorney general’s office, and he tells you that your company is the subject of a fraud investigation. You are shocked. You are the president of a successful business, supported by hardworking and diligent employees. Your company does everything above board and you have no idea why the government would be investigating you. The answer may be the . . . Read More
No Piggy-Backing Allowed: GAO Regulations Compel Offerors to File Their Own Protest Rather than Intervene
Last September, we wrote about the importance of an awardee intervening in a bid protest challenging the contract award before the U.S. Government Accountability Office (“GAO”). By intervening, the awardee protects its right to review documents related to the award decision in the agency report, respond to protest grounds and ensure its interests are represented. See Skipping Intervention in a GAO Bid Protest Can Be a “Pound Foolish” Exercise by Patrick Rothwell. But what about other disappointed offerors? Can they intervene in the protest filed by a fellow disappointed offeror if they also . . . Read More
Negotiating the Provisions of Your Office Lease
One contract that virtually all businesses enter into is an office lease. But despite how common office leases are, the…One contract that virtually all businesses enter into is an office lease. But despite how common office leases are, the provisions in them can vary dramatically. Indeed, a prospective tenant and landlord each has a significant amount of room to negotiate the specific terms of their lease agreement. Business owners should be sure to fully negotiate this important contract, with a . . . Read More
Could Your Employees Be Eligible for FMLA Leave on Their First Day of Work? The Answer C
By Corey Argust It would be easy for employers to assume that they need not worry about an employee’s eligibility for Family and Medical Leave Act (“FMLA”) leave until at least one year has passed since the employee began working for the employer. This is because to be eligible for leave under the FMLA, an employee must have: 1) been employed “for at least 12 months by the employer with respect to whom leave is requested;” and 2) worked “for . . . Read More