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Richard Arnholt

Richard Arnholt advises companies, large and small, on the complex rules and regulations applicable to grants and contracts from federal and state governmental entities. In an era of increased budgetary pressures for contractors, Richard focuses his practice on providing practical business and legal guidance to help clients efficiently navigate the minefield of government procurement and grant regulations.

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On January 8, the Government Accountability Office (GAO) sustained a pre-award bid protest filed by Bass, Berry & Sims PLC (Bass Berry), which challenged the Federal Law Enforcement Training Centers’ (FLETC or the Agency) determination to exclude the protester, UNICA-BPA JV, LLC (UNICA), from a competition when UNICA had an active SAM registration at the time of final proposal revision (FPR), but not at the time of its initial proposal submission. The decision clarifies that FAR 52.204-7, System for Award Management applies to the proposal that would bind the offeror to perform the resultant contract.Continue Reading Bid Protest Minute: GAO Decision Clarifies SAM Registration Rule

On January 6, the Department of Justice (DOJ) announced that Athira Pharma Inc., a Washington-based biopharmaceutical company, agreed to pay over $4 million to settle allegations it violated the False Claims Act (FCA). The DOJ alleges Athira failed to report allegations of research misconduct in its grant applications, award progress reports, and assurances. The settlement serves as a reminder to companies performing on grants that the Department of Health and Human Services (HHS) takes allegations of research misconduct seriously and grantees must closely adhere to regulatory requirements related to disclosing such allegations.Continue Reading Athira Pharma Inc. Agrees to Settle False Claims Act Allegations

On November 13, the Government Accountability Office (GAO) sustained a protest by DecisionPoint Corporation concluding that when the Air Force determined EmeSec, a wholly owned subsidiary of DecisionPoint, was ineligible for award for not having the correct certification, it improperly ignored the effect of a novation. The GAO reasoned that the merger between EmeSec and DecisionPoint made DecisionPoint the new prime and therefore, DecisionPoint’s proposal, which included the required certification, should have been considered. The decision underscores the need for contractors, as well as agencies, to carefully consider the impact of mergers and acquisitions on eligibility for pending awards, an issue we have previously written about.Continue Reading Bid Protest Minute: COs Must Account for Corporate Restructuring When Assessing Qualifications

On November 5, the Court of Appeals for the Ninth Circuit held that the president lacks the authority under the Federal Property and Administrative Services Act (FPASA or Act) to impose a $15 minimum wage on federal contractors and remanded the case to the district court to reconsider in light of the Ninth Circuit’s decision. For decades administrations have used FPASA to implement social policy under the guise of government procurement rules, and courts have typically upheld these actions.Continue Reading Ninth Circuit Deflates Contractor Minimum Wage Mandate

After numerous fits and starts, on October 14, the Department of Defense (DoD) published a final rule implementing the Cybersecurity Maturity Model Certification (CMMC) program. Borne from documented deficiencies in the implementation of DoD-mandated security controls throughout the defense supply chain, the new CMMC program is a verification requirement to ensure contractors are complying with cybersecurity requirements at FAR 52.204-21, DFARS 252.204-7012, and DFARS 252.204-7020. Importantly, beginning in 2025 DoD RFPs will mandate the CMMC level contractors must meet in order to be eligible for award.Continue Reading DoD Announces Cybersecurity Maturity Model Certification 2.0 Final Rule (Finally!)

As we detailed in a previous blog, on October 3, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) published a strategic plan to “safeguard[] the integrity of HHS grants and contracts.” The plan comes after the HHS-OIG found “gaps in HHS oversight of grants and contracts—gaps that allow HHS funds to be misspent, programs to fall short of their promise, and people to be put at risk.”Continue Reading HHS-OIG Set To Intensify Scrutiny of Grants and Contract Compliance: How to Prepare

On October 3, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) published a strategic plan for improving oversight of public grants and contracts “to strengthen compliance with HHS award requirements; promote award practices that achieve program outcomes; and mitigate fraud, waste, abuse, and mismanagement.” This comes as grant fraud related to awards by HHS and other agencies routinely makes the news. For example, in July Janet Mello was sentenced to 15 years in prison for stealing over $100 million from a U.S. Department of Agriculture (USDA)/Department of Defense (DoD) grant program aimed at helping military families. Similarly, fraud stemming from the Paycheck Protection Act has been dubbed the “biggest fraud in a generation.”Continue Reading HHS’ Office of Inspector General Announces New Strategic Plan: What Contractors Should Know

On September 19, the Government Accountability Office (GAO) issued a report highlighting a gap in current Organizational Conflicts of Interest (OCIs) restrictions. According to the report, the Federal Acquisition Regulation (FAR) does not adequately address how contracting officers should consider bids from contractors who engage in contracting activities with the government of China and other countries of concern.Continue Reading New Organizational Conflict of Interest Regulations Coming Soon

On August 15, the Department of Defense (DoD) published a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to incorporate contractual requirements related to the proposed Cybersecurity Maturity Model Certification (CMMC) 2.0 program rule. Continue Reading DoD Publishes Proposed Rule to Amend DFARS Provisions Related to the CMMC 2.0 Program

In addition to opening the door to possible awards under the government’s Other Transactions Authority (OTA), products and services provided by contractors that meet the definition of a Non-Traditional Defense Contractor (NDC) may be treated by the government as commercial without any commercial determination pursuant to Defense Federal Acquisition Regulation Supplement (DFARS) 252.215-7013. Continue Reading Exception to Commercial Determination for Non-Traditional Defense Contractors Offers New Opportunities

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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