Similar But Different: FAA Size Protest Challenges
Most small business contractors are familiar with the notion that the U.S. Small Business Administration (“SBA”) has exclusive jurisdiction over all size protests. In fact, in the realm of government contracting, there is really no question as to which federal agency “wears the pants” when it comes to handling small business size issues. Still, is the SBA really the only federal agency capable of making a formal size determination regarding a business concern? Officials at the Federal Aviation Administration (“FAA”) . . . Read More
Protecting an LLC From A Wayward Member While Maintaining SBA Eligibility
By Ambi Biggs When creating a limited liability company (“LLC”), members are often so concerned with getting the company established–and anticipating problems that may arise with third parties, be it suppliers or customers–that they fail to consider what will happen if issues arise among the members themselves. This is a mistake. Usurpation of corporate opportunities, the misuse of company assets and a breach of fiduciary duties are just some of the most common issues that can arise among LLC . . . Read More
STOP, THIEF! – How to Keep Your “Secret Sauce” In-House, When an Employee Is Lured to Greener Pastures
No matter how collegial and successful a workplace you have created for your employees, attrition is an inevitable fact of life in business, and in government contracting in particular. And when departing personnel have been privy to hard-won confidential and proprietary company data, the thought of that information falling into the hands of a competitor have caused many a sleepless night for business owners. This article is intended to outline some steps that the prudent executive should take to preserve . . . Read More
New Washington, DC Wage Law with Sweeping Changes In Effect This Week
On February 26, 2015, the Amended DC Wage Theft Prevention Act (the “Act”) goes into effect and imposes several new obligations on Washington, DC employers. The Act makes sweeping changes to notice and recordkeeping requirements and imposes heavy penalties on employers that violate the Act. The following describes several obligations of which DC employers should be aware: Pay Notice Requirements Within 90 days of the Act’s effective date, or May 27, 2015, DC employers must furnish a wage notice to . . . Read More
SBIC Investment: A Potential Source of Capital for Government Contractors
By Linh Phu, Access National Bank Owners of privately-held businesses generally finance their businesses with their own capital, augmented with bank loans. An additional source of funding for government contractors is available from Small Business Investment Companies (SBICs). The Small Business Investment Company Program was established by Congress in 1958 to supplement the long term capital, both debt and equity, available to small businesses. The SBICs are privately owned and managed investment funds, but regulated and licensed by the U.S. . . . Read More
Does Your Employee Incentive Plan Create an Early Pay-Out and Exit for Key Employees at the Owners’ Expense?
Business owners have at their disposal a variety of employee incentive compensation tools to attract and retain talent. In terms of employee incentive plan design, business owners work to strike a balance between “carrots”–rewards to employees–and “sticks”–measures to protect the company’s downside if the employee fails to deliver value. What should a properly-designed employee incentive plan do? Generally speaking, a well-crafted employee incentive plan will incentivize key employees to drive value and build the company; and in exchange be rewarded . . . Read More
Coming Soon to a FAR Near You: Cybersecurity Requirements
There are a growing number of cybersecurity requirements applicable to government contractors that work with the Department of Defense (DoD) and intelligence community. Thanks in part to a number of recent, high-profile cyber attacks, the laws and regulations governing cybersecurity will surely expand further. Indeed, President Obama mentioned cybersecurity in his 2015 State of the Union address, around the same time several new or rehashed legislative proposals were issued. These laws and regulations are designed to impose requirements on contractors . . . Read More
How Much U.S. Work Is Needed for the Small Business Set-Aside Rules To Apply?
By Kimi Murakami In a decision issued last year, the GAO denied the protest of Maersk Line, Limited, of Norfolk, Virginia (“Maersk”), a large business, which challenged the decision of the Department of the Navy, Military Sealift Command (“MSC”) to conduct the procurement for cargo transportation services in accordance with the small business set-aside requirements of the Federal Acquisition Regulation (“FAR”) Part 19. Maersk Line, Limited, B-410280 (December 1, 2014). Maersk argued that the agency erroneously applied the set-aside rules . . . Read More
DOD Seeks to End the 25-Year “Pilot” Status of the DoD Mentor-Protégé Program
By Alex Levine The U.S. Department of Defense (“DoD”) recently announced its intent to request a 10-year extension of its mentor-protégé program. The move is a bid to add more permanence to a program, since its advent in 1991 has been labelled a pilot program that must be reauthorized in a National Defense Authorization Act every few years. The DoD hopes that the move will encourage participation amongst businesses, participation which the DoD asserts has been “chilled” due to the . . . Read More
Organizations Urge SBA to Expedite WOSB Sole Source
By Megan Connor As we explained in a previous blog post , Section 825 of the National Defense Authorization Act for FY 2015 creates sole source authority for participants in the Woman-Owned Small Business (“WOSB”) Program. Additionally, Section 825 seemingly eliminates WOSB self-certification. Because these are two major developments in the WOSB Program, it could take considerable time for the SBA to issue its proposed rulemaking. Therefore, 24 organizations are urging the SBA to move on the sole source authority quickly and then . . . Read More