Impact of New Health and Welfare Rates on SCA Government Contracts
It’s that time of the year again when the Department of Labor’s (DOL) Wage and Hour Division (WHD) issues new Service Contract Act (SCA) health and welfare (H&W) rates. In June 2023, WHD increased the prevailing H&W fringe benefits from a rate of $4.80 per hour to $4.98 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates have increased from $4.41 per hour to $4.57 per hour. Updated rates of . . . Read More
Federal Court Prohibits SBA’s Use of Rebuttable Presumption for 8(a) Program
On July 19, 2023, the U.S. District Court for the Eastern District of Tennessee issued an important decision where it declared that the Small Business Administration’s (SBA) rebuttable presumption of social disadvantage, which is used in admitting many small-disadvantaged businesses to the SBA’s 8(a) program, violated the equal protection rights of a government contractor and enjoined the use of the rebuttable presumption in administering the 8(a) program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., No. 2:20-CV-0041-DCLC-CRW (E.D. Tenn. July . . . Read More
DHS Updates Cybersecurity Regulations Clarifying Old and New Obligations
The Department of Homeland Security (DHS) recently released a final rule (Final Rule), effective July 21, 2023, updating the Homeland Security Acquisition Regulation (HSAR) to include cybersecurity provisions aimed at safeguarding Controlled Unclassified Information (CUI) and facilitating improved incident reporting. This rule’s promulgation follows a recent trend and overall government-wide effort focused on strengthening our national security against bad actors and foreign adversaries. PilieroMazza recently blogged about some of those efforts, including the TikTok ban ( here ), new standardized cybersecurity obligations mirroring . . . Read More
Get Ready! Enhanced Cybersecurity Standards for Federal Contractors Coming Soon
For years, the federal contracting community has closely monitored the oft-delayed Department of Defense’s (DOD) Cybersecurity Maturity Model Certification (CMMC) program—now on iteration 2.0—as the forefront of cybersecurity obligations. That focus may soon be expanding. Contractors outside of DOD’s orbit may soon be subject to similar requirements. Civilian agency contractors should start preparing now for an enhanced cybersecurity proposed rule to prevent gaps or issues when the regulation goes into effect—not to mention it just being good business to have . . . Read More
GAO Confirms Agency Must Consider Experience of Each Partner in a Small Business Joint Venture
Earlier this year, the Government Accountability Office (GAO)—in AttainX, Inc. , B-421216, B-421216.2 (Feb. 9, 2023)—clarified that in evaluating the experience of a mentor-protégé joint venture (JV) for a small business set-aside procurement, the agency must evaluate each JV member’s experience individually, as well as any experience of the JV itself. After the decision was issued, the protestor requested GAO reconsider its ruling, alleging the decision contained an error of law. In MiamiTSPi, LLC-Reconsideration , B-421216.3 (May 11, 2023), GAO denied that request in . . . Read More
Final Rule Implements New Process for Appealing HUBZone Status Protests
Based on new rules that take effect on May 10, 2023, the U.S. Small Business Administration (SBA) Office of Hearings and Appeals (OHA) will now hear appeals from Historically Underutilized Business Zone (HUBZone) status protests. PilieroMazza and others advocated for this change for some time, and it is now a reality. This is a welcome development to put the HUBZone program on par with the other small business programs and allow HUBZone firms to avail themselves of the appeal process at OHA. The . . . Read More
Veterans Affairs Imposes Increased Cybersecurity Rules on Government Contractors
The U.S. Department of Veterans Affairs (VA) released a final rule , effective February 24, 2023, amending the VA’s Acquisition Regulation (VAAR) to impose new cybersecurity procedures and processes to protect sensitive VA data and health information. Although much of the recent cybersecurity buzz has centered around the Department of Defense’s (DOD) Cybersecurity Maturity Model Certification ( CMMC ) framework, the VA did not want to be left out. These VAAR additions will force affected contractors at all tiers to implement internal controls . . . Read More
SBA Releases Preview of New HUBZone Maps Effective July 1, 2023
HUBZone contractors have been anxiously awaiting updates to the HUBZone maps. In 2021, SBA extended the “freeze” on the HUBZone maps until June 30, 2023, to provide enough time to update the maps based on the 2020 Census results. SBA targeted the release of a beta version of the new HUBZone maps in January 2023, and SBA recently hit that mark. A preview of the new HUBZone maps that will take effect on July 1, 2023, is now up on . . . Read More
Congress Passes FY2023 NDAA and Implements Significant Changes to Federal Procurement Policy
Congress recently passed the FY2023 National Defense Authorization Act (NDAA) , authorizing $858 billion in defense spending and implementing some significant changes to federal procurement policy. The bill will now be sent to President Biden to be signed into law, which we anticipate will happen any day. PilieroMazza examines key themes and provisions in the FY2023 NDAA that government contractors (small and large) should know to take advantage of contract opportunities and maintain compliance requirements. Background The NDAA is annual legislation that authorizes funding and programs for . . . Read More
Inflation Relief Is Coming for DOD Contractors
As PilieroMazza has reported , rising costs due to inflation have been one of the most significant issues facing contractors with fixed-price contracts for the past year. Although the Department of Defense (DOD) and General Services Administration (GSA) have taken some steps to ameliorate the situation, those solutions have left contractors wanting. But true relief may be in sight. Congress included a provision in the National Defense Authorization Act (NDAA) for Fiscal Year 2023 that would authorize DOD contractors to receive contract adjustments for inflation-related . . . Read More