Overcoming the Inflation Crisis: The Ins-and-Outs of Extraordinary Contractual Relief for Government Contractors
An all-but-forgotten remedy in government contracting, Extraordinary Contractual Relief (ECR) , is in the midst of a potential resurgence due to the Department of Defense’s (DOD) most recent memorandum on inflation entitled Managing the Effects of Inflation with Existing Contracts . As PilieroMazza previously discussed , the current inflation crisis prompted DOD to suggest that, subject to the availability of funds, contractors should seek ECR when seeking an upward adjustment to the price of an existing firm-fixed-price contract. If you are a government contractor impacted by inflation while performing a contract, see below for the ins‑and‑outs . . . Read More
SBA Proposes Revisions to Bona Fide Place of Business Requirements for 8(a) Construction Contracts
The bona fide place of business requirement provides that for 8(a) construction contracts, the contractor must have an SBA-approved bona fide place of business in the applicable geographical area. Since August 25, 2021, and as PilieroMazza reported , SBA placed a moratorium on the bona fide place of business requirements for 8(a) construction contracts. The moratorium was extended through September 30, 2023. This client alert reviews certain proposed changes that government contractors operating in the construction sector and participating in the 8(a) . . . Read More
SBIR/STTR Programs Renewed: Compliance Requirements for Small Business Contractors
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SSTR) Extension Act of 2022 was enacted into law on September 30. The Act reauthorizes the SBIR/STTR programs until 2025. The reauthorization is both crucial for current participants, and aspiring small businesses wishing to conduct government-funded research and development (R&D). Small businesses currently participating, or considering submitting a proposal under either program, must be aware of the new program changes, their effective dates, and the potential consequences of noncompliance. . . . Read More
Impact of SBA Proposals on Federal Subcontracting
As PilieroMazza recently noted , SBA released a major proposed rulemaking that will impact government contractors. The proposed rule is focused on SBA’s 8(a) Program (see our client alert highlighting those proposed changes here ), but it also impacts the rules for subcontracting on federal projects. This client alert provides contractors with an overview of SBA’s proposals related to the limitations on subcontracting, subcontractor affiliation, and subcontracting plans. Limitations on Subcontracting (LOS) SBA’s rules currently provide that the period of time used to determine . . . Read More
Section 889 Part B to Take Full Effect for DOD Contractors on October 1st
In October 2020, we wrote about a memorandum issued by the now former Director of National Intelligence (DNI), John Ratcliffe, which waived the requirement that Department of Defense (DOD) contractors comply with Part B of Section 889 of the National Defense Authorization Act for Fiscal Year 2019 until September 30, 2022. Unless another waiver is granted, full compliance with Section 889, Parts A and B, will be required starting October 1st for all DOD contracts. Essentially, Section 889 is a broad prohibition . . . Read More
SBA’s Proposed Rule Alters the Landscape for Size and Status Protests
On September 9, 2022, the U.S. Small Business Administration (SBA) issued a proposed rule (the Rule) making substantial changes to the 8(a) Business Development program (covered here in a previous PilieroMazza alert). Scattered throughout the Rule are various protest-related changes for the Women-Owned Small Business (WOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB), and Historically Underutilized Business Zone (HUBZone) Programs. The Rule expands and limits the ground rules for filing a size or status protest against an apparent successful offeror. To avoid losing contracting opportunities . . . Read More
SBIR/STTR Extension: Proposed Requirements for Small Business Contractors
On September 22, the Senate passed the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Extension Act of 2022 . As it heads to the House of Representatives, government contractors in these programs should be weary of various changes that would significantly impact both programs, if passed. Particularly, the bill cracks down on foreign investment and affiliation in SBIR/STTR participants, as well as increasing performance standards for firms considered “SBIR Mills,” the term given to small businesses receiving a significant number of awards under Phase I and II of the SBIR program . . . Read More
DOD Offers Relief for Contractors Facing Registration Challenges with SAM.Gov
As many contractors know all too well, the System for Award Management (SAM) has had a rocky 2022 driven by the transition from the Data Universal Numbering System (DUNS) to the assignment of Unique Entity IDs (UEI) through SAM. PilieroMazza previously wrote about the issues here . The switch resulted in a wide range of entity validation issues, causing contractors undergoing the validation process to miss their payment deadlines and significantly hampering their ability to register in SAM in time for . . . Read More
Impact of SBA Proposals on WOSB and HUBZone Programs, Joint Ventures/Mentor-Protégés, and Nonmanufacturer Rule Waivers
As PilieroMazza noted recently here , SBA released a major proposed rulemaking that will impact government contractors. While the proposed rule is heavily geared toward SBA’s 8(a) Program, SBA included proposals for many of its other small business programs as well. This client alert provides contractors with an overview of SBA’s proposals related to Woman-Owned Small Business (WOSB) and HUBZone Programs, as well as joint ventures and nonmanufacturer rule (NMR) waivers. WOSB Program As you may be aware, SBA’s regulations provide . . . Read More
DOD and GSA Inflation Update: Key Takeaways for Government Contractors
Inflation continues to be among the top problems facing government contractors , as it continues to rise and contractor’s resources to address the problem become depleted. Even falling gas prices is not enough to curb the steady rate of inflation. In the past two weeks, the Department of Defense (DOD) and General Services Administration (GSA) updated their guidance on contractual adjustments for inflation. Although not perfect, the guidance is a step in the right direction. In this client alert, PilieroMazza attorneys offer key takeaways to help . . . Read More