On August 9, President Biden plans to sign the CHIPS and Science Act into law in the White House Rose Garden. The bill provides $52.7 billion in subsidies and incentives to domestic semiconductor manufacturers to strengthen existing supply chains and better compete with China. While details of the bill have been debated as the legislation has gone through multiple rounds of revisions and edits, elected officials have remained focused on the goal of enacting a bill that ensures funding to promote domestic rather than non-U.S. business. To realize those ambitions, the legislative authors took a page from the Committee on Foreign Investment in the United States’ (CIFUS) playbook, producing a quasi-outbound investment screening mechanism that could bring big changes.
Continue Reading Chipping Away at Trade: New Tool Could Bring Big Changes
New Certification Process for Veteran-Owned Small Businesses
On July 6, the SBA issued a proposed rule that would implement Section 862 of the National Defense Authorization Act for Fiscal Year 2021 establishing a government-wide certification process for Veteran Owned Small Businesses (VOSBs) and Service Disabled Veteran Owned Small Businesses (SDVOSBs).
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Responsibility vs. Responsiveness: A Critical Difference Saves Flawed Initial Bid
As a general matter, an agency should reject a bid out of hand if it is deemed defective due to problems with bidder responsiveness. However, flawed bids determined on account of issues with bidder responsibility can be supplemented with the requested information any time before award. On May 18, the GAO wrangled with that critical difference in operative language, finding in favor of a bidder who successfully demonstrated the requested information dealt with a question of responsibility, rather than one of responsiveness, in J.E. McAmis, Inc., B-420518; B-420518.2.
Continue Reading Responsibility vs. Responsiveness: A Critical Difference Saves Flawed Initial Bid
SBA Enlarges Small Business Pool through New Rule Change
On June 6, the U.S. Small Business Administration (SBA) issued a final rule modifying its methodology for calculating the size of small businesses using an employee-based size standard and authorizes businesses participating in its Business Loan, Disaster Loan, Surety Bond, and Small Business Investment Company (SBIC) programs to choose whether to use a three-year or five-year receipts average when determining eligibility. The final rule becomes effective on July 6, 2022.
Continue Reading SBA Enlarges Small Business Pool through New Rule Change
Buyer Beware: Settling FCA Allegations Costs Manufacturer $5.2 Million
Numet Machining Techniques, a Connecticut-based machined parts manufacturer for commercial and military aerospace engines, recently agreed to pay $5.2 million to settle alleged violations of the False Claims Act (FCA) for misrepresenting its size standard following an acquisition.
Continue Reading Buyer Beware: Settling FCA Allegations Costs Manufacturer $5.2 Million
[WEBINAR] SBA ASMPP Joint Ventures: Best Practices for Successful Partnerships
A key benefit of Small Business Administration’s (SBA) All Small Mentor Protégé Program (ASMPP) is the opportunity for mentors and protégés to form joint ventures to bid together on prime and subcontracts as a small business. As the number of MPP relationships has grown, so too has the use of the ASMPP joint ventures (JV) to pursue opportunities previously out of reach for both parties. Hear from a panel of experts on best practices in JV formation, structuring, and growing the MPP relationship.
Please join Bass, Berry & Sims attorneys Todd Overman (moderator) and Sylvia Yi, joined by Steven Williams (Deloitte) and Ken Dodds (Live Oak Bank), for a webinar on June 28 at 1:00 p.m. ET / 12:00 p.m. CT, as they discuss these opportunities and much more. Click here to register.Continue Reading [WEBINAR] SBA ASMPP Joint Ventures: Best Practices for Successful Partnerships
Broad Agency Discretion to Cancel Bid Solicitations Curtailed with Recent Court Decision – “The Tribe has Spoken”
Generally, government agencies are given broad discretion to define their needs; however, last month, the United States Court of Federal Claims chose to curtail an agency’s authority to cancel and amend bid solicitations in Seventh Dimension, LLC v. U.S., No. 21-2275C (May 2022).
Continue Reading Broad Agency Discretion to Cancel Bid Solicitations Curtailed with Recent Court Decision – “The Tribe has Spoken”
DOD Publishes Final Rule Redesignating Contracts Previously Awarded Under FAR Part 12 Guidelines as Commercial Item Determinations (CIDs)
The Department of Defense (DOD) recently issued a final rule implementing Section 828 of the NDAA for Fiscal Year (FY) 2018, requiring the treatment of the majority of contracts for items awarded using Federal Acquisition Regulation (FAR) part 12 acquisition procedures to serve as a prior commercial item determination (CID).
Continue Reading DOD Publishes Final Rule Redesignating Contracts Previously Awarded Under FAR Part 12 Guidelines as Commercial Item Determinations (CIDs)
PCSF Strikes Again: Scheme to Rig Bids Results in Federal Grand Jury Indictment
Last month, the Department of Justice (DOJ) announced that a Florida grand jury indicted three men for conspiring to rig bids for customized promotional products to the U.S. Army and charged two of them with conspiring to defraud the United States. Bid rigging is how conspiring competitors effectively raise prices where purchasers — often federal, state, or local governments — acquire goods or services by soliciting competing bids.
Continue Reading PCSF Strikes Again: Scheme to Rig Bids Results in Federal Grand Jury Indictment
Opportunities for Small Business within Federal Contracting Space
In a May 4 article published by American City Business Journals’ The Playbook, I offered insight on the opportunities for small businesses to engage with federal contracting and practical steps to get started.
The federal government spent more than $665 billion on contracts in FY2020, and a variety of special programs for contracts are designed to meet the goal of spending at least 23% of all contracting dollars with small business owners.Continue Reading Opportunities for Small Business within Federal Contracting Space