A Win for Employers Enforcing Restrictive Covenants in Virginia
By Julia Di Vito The enforceability of a restrictive covenant in an employment agreement, including a non-competition, non-solicitation, or non-disclosure provision, depends greatly on the state in which the covenant is to be enforced. In Virginia, courts will not “blue pencil” or modify restrictive covenants, and thus if the restrictive covenant is unenforceable as written, then a court will not enforce it at all. Other states are more flexible and will enforce restrictive covenants to the extent they are reasonable. . . . Read More
Yet Another Recertification Rule
On December 29, 2014, the Small Business Administration (“SBA”) issued a proposed rule to implement the subcontracting limitation requirements mandated by the National Defense Authorization Act of 2013. Buried therein was a new proposed regulation with regard to recertification of size prior to a contract award. Under this new, proposed size recertification rule, firms that are bidding on small business set-aside contracts will need to recertify their size prior to an award if they engage in a merger and/or an . . . Read More
When Should you File a Contract Disputes Act Claim?
By Julia Di Vito Under the Contract Disputes Act (“CDA”), a contractor must submit a claim within six years of accrual of the claim. A claim is simply a written demand for payment directed to the contracting officer (“CO”) that indicates that it is requesting a final decision. Although six years seems like more than enough time to submit a claim, it is best to not take that time period for granted. Determining when a claim actually accrues can pose . . . Read More
The “Rule of Two” For Orders Placed Against Multiple Award Contracts: The Other Shoe Has Dropped
As many of you may recall, Congress passed the Small Business Jobs Act (“Act”), in July 2010. The purpose of the Act was to ameliorate the effects of the 2008 financial crisis and subsequent recession. Although the Act expanded opportunities for small business there were, nonetheless, some provisions which, in fact, made doing business with the Government somewhat more difficult for small business contractors. In particular, Section 1331 of the Act mandated the Office of Federal Procurement Policy (“OFPP”) and . . . Read More
In a Business Owners Agreement, Should All Owners Be Equal?
Good business planning involves owners of the company developing and entering into a shareholders agreement, operating agreement or partnership agreement (owners agreement). A good owners agreement will allow the owners to plan and prepare upfront for disruptive events in the company’s business life cycle, whether good or bad. And, as part of putting together an owners’ agreement, one of the fundamental questions owners need to resolve is whether all owners should have equal rights. The answer is it depends—in some . . . Read More
GAO and COFC Task Order Jurisdiction – To Count or Not To Count Option Periods
Jurisdiction of the GAO and the Court of Federal Claims to hear task order protests is limited to protest of awards over $10 million. How one defines whether a task order is over or under the $10 million threshold is subject to interpretation. The latest question presented in a GAO protest was a solicitation requirement to evaluate a priced based on “all options,” including the 6-month option to extend services under FAR 52.217-8. There are a number of cases stating . . . Read More
Cybersecurity Monday: Who Is Shopping for Your Data?
At this time of year, everyone is shopping for a good bargain. And with “Cyber Monday,” the internet has become the place to go for the best deals. The shift to online and cloud-based information systems and data storage has also opened up a new market for online shopping, trafficked by hackers and other cyber criminals who want to take or corrupt your company’s personal, proprietary, and other sensitive information. Many small businesses believe that they are not likely . . . Read More
Holiday Office Party Etiquette: Don’t Dance on the Table
Everyone loves a good holiday party. It is a time to unwind with co-workers and show appreciation for another year of hard work. But if you are the boss, you may have heard about or been a part of a holiday party gone awry and are terrified of the possible legal ramifications. The first issue that usually comes to mind is alcohol and driving. And while you should be concerned about whether your state has a “social host” law that . . . Read More
DOT’s New DBE Utilization Rules
The Department of Transportation’s (“DOT”) new Disadvantaged Business Enterprise (“DBE”) regulations went into effect on November 3. These new rules will have a significant impact on the highway construction industry, according to the Associated General Contractors of America. Because so many small disadvantaged businesses also participate in the DBE program, it is important that they stay abreast of these new regulations. The DOT considered the revisions to be a minor adjustment to the old rules, but they actually have a . . . Read More
SAM’s New Ownership Disclosure Requirements
The System for Award Management (“SAM”) administrator recently issued a new requirement for identification of your entity’s ownership in order to maintain an active registration in SAM. The notice, which was issued Nov. 1, informs small business owners of new ownership questions that are now required to be answered in order to keep their SAM registration active. The notice is included below: Effective November 1, 2014, a new Federal Acquisition Regulation (FAR) Subpart 4.18 – Commercial and Government Entity Code (CAGE) requires you to . . . Read More