Employee Stock Ownership Plans: More Confusion for Veteran-Owned Small Businesses
My house, my rules. That was the approach seemingly taken by the Department of Veterans Affairs (“VA”) when it crafted the regulations governing eligibility of Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses (collectively, “VOSBs”) for the Veterans First Contracting Program (the “VA Program”). The VA appears to have patterned its rules off the Small Business Administration’s (“SBA”) rules for both the 8(a) Business Development Program and the Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBC”) Program (the “SBA Program”), which has created a lot of confusion for veterans participating in both . . . Read More
What to Do When an Investigator Comes Knocking
Our firm has observed a significant uptick in the investigation of government contractors in the last few years. This is driven, in large part, by a political and regulatory environment that assumes fraud, waste and abuse are endemic in the government contracting space. Operating in this environment, contractors should have plans in place to deal with government investigators. We usually recommend that firms take the following steps in the event an investigator comes knocking at their door: Contact your legal . . . Read More
SCA H&W Rate Increases to $4.02 per hour Effective July 22, 2014
The prevailing health and welfare (H&W) fringe benefit rate was increased effective July 22, 2014 to $4.02 per hour, with the exception that the benefit rate in Hawaii will be $1.66. The new H&W rate applies to “all invitation for bids opened, or other service contracts awarded on or after July 22, 2014.” The contracting agency must include a new wage determination reflecting the new H&W rate to trigger the contractor’s obligation to pay the higher H&W rate. The contracting . . . Read More
An 8(a) Contracting Cautionary Tale’s Final Scene
Many may have fond childhood memories of their parents reading cautionary tales or poems to them before going to bed, such as Hilaire Belloc’s “Rebecca: Who Slammed Doors For Fun and Perished Miserably” or Shel Silverstein’s “Sarah Cynthia Sylvia Stout Would Not Take the Garbage Out.” Like these poems, the stories are usually very funny. Yet, however ludicrous they may be, the writings often teach valuable life lessons without (usually) giving children bad dreams in the process. When one exits . . . Read More
The gTLD Explosion: Changes to Domain Names that All Businesses Should be Aware Of
The universe of domain names within the internet is undergoing radical change and businesses need to be aware of how to navigate in this new world. On June 20, 2011, the Internet Corporation for Assigned Names and Numbers (“ICANN”), the international non-profit corporation that oversees the domain name system in the internet, approved the launch of its new generic top-level domains (“gTLD”) program dramatically expanding the existing gTLD system. gTLDs are the extensions (i.e., letters or words) that come to the right of the “dot” in a . . . Read More
EEOC Issues New Pregnancy Discrimination Guidelines
On July 14, 2014, the Equal Employment Opportunity Commission (EEOC), in a split decision, issued new guidelines regarding its enforcement of pregnancy discrimination laws. Although the guidance should be carefully reviewed, among the most notable changes is that the EEOC now interprets the Pregnancy Discrimination Act (PDA) to require employers to provide reasonable accommodation to employees who have work restrictions due to pregnancy even if the employee does not qualify as disabled or is not regarded as disabled under the Americans with . . . Read More
Attorney-Client Privilege Protects Against Production of Internal Investigations of Fraud
By Katie Flood If you have been worrying about a potential issue related to an audit or False Claims Act (FCA) complaint, but have been nervous to proceed with an internal investigation in case those results should come back damning and later be disclosed a court case, there is good news from the DC Circuit. In a petition filed in the case In re Kellogg Brown & Root, Inc., DC Circuit No. 14-5055 (June 27, 2014), the DC Circuit overturned the . . . Read More
Minimum Wage for Contractor Employees on Fast Track to Your Contracts
At some point in the past few months, you may have heard about Executive Order 13658 (EO), issued on February 12, 2014, wherein President Barack Obama establishes a $10.10 per hour minimum wage for employees of federal contractors and subcontractors by January 2015, adjusted annually thereafter by the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. There is a disagreement about the actual impact the EO will have since most federal contractors and subcontractors subject to the provisions . . . Read More
GAO Affirms Timeline for SBA Approval of Joint Venture Agreements
By Kelly DiGrado The U.S. Government Accountability Office (GAO) recently affirmed that joint venture (JV) agreements need not be approved by the Small Business Administration (SBA) prior to submission of a proposal for an 8(a) set aside contract. See BGI-Fiore JV, LLC, B-409520 (May 29, 2014). The case arose in the context of a pre-award protest of NASA’s decision to eliminate of BGI-Fiore’s proposal from competition for an 8(a) set aside contract. NASA rejected the proposal of BGI-Fiore, JV, LLC, a JV between . . . Read More
Prompt Payment Act Interest Decreases
Effective July 1, 2014, the Prompt Payment Act (PPA) and Contract Dispute Act (CDA) interest rates have decreased to 2% per annum. See 79 Fed. Reg. 33647 (June 12, 2014). Since 2008, when the PPA and CDA interest rates were as high as 5 5/8 % per annum, the interest rates under the PPA and CDA have trended downward to a low of 1 3/8 % per annum for the first half of 2013. This meant that contractors were recovering next to nothing for . . . Read More