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
Government Contracts
“Small” Space Companies: Growth Comes at a Cost
Space has become central to protecting U.S. national security interests as Americans increasingly rely on space-based services to support everyday life. As a result, the U.S. government has bolstered investment in the space sector creating a wealth of opportunities for contractors. For example, the U.S. Department of Defense’s (DoD) budget request for fiscal year 2025 is seeking $33.7 billion for space programs. Continue Reading “Small” Space Companies: Growth Comes at a Cost
Register Now | Small Businesses as Inorganic Growth Targets Webinar
Join me on December 3 for a webinar where I’ll dive into why small GovCon businesses with set-aside designations could be particularly attractive for acquisition in 2025. If you’re looking to enter the full and open market, acquiring a set-aside company may be a strategic path to hitting that elusive $100 million revenue target before selling.Continue Reading Register Now | Small Businesses as Inorganic Growth Targets Webinar
DoD Announces Cybersecurity Maturity Model Certification 2.0 Final Rule (Finally!)
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!)
HHS-OIG Set To Intensify Scrutiny of Grants and Contract Compliance: How to Prepare
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
HHS’ Office of Inspector General Announces New Strategic Plan: What Contractors Should Know
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
New Organizational Conflict of Interest Regulations Coming Soon
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
SBA Seeks to Make Changes to Recertification Requirements for Multiple-Award Contracts
On August 23, the U.S. Small Business Administration (SBA) issued a proposed rule that would make significant changes to SBA’s recertification requirements. Most notably, the rule would change when size and socioeconomic status are determined and amend when a contractor’s eligibility under certain multiple-award contracts upon recertification. Continue Reading SBA Seeks to Make Changes to Recertification Requirements for Multiple-Award Contracts
Bid Protest Minute: COFC Makes It Clear; SAM Registration Can Sink a Proposal
On September 10, the Court of Federal Claims (COFC) issued an opinion in Zolon PCS II, LLC v. United States, holding that the National Geospatial-Intelligence Agency (NGA or Agency) unreasonably issued a deviation from FAR 52.204-7, which requires offerors to be continuously registered in SAM.gov from the time of proposal submission through award. Continue Reading Bid Protest Minute: COFC Makes It Clear; SAM Registration Can Sink a Proposal
SBICCT Initiative Adds New Tool to Drive Innovation
The Department of Defense (DoD) has long searched for ways to foster innovation in the defense industrial base by harnessing US comparative advantages like our capital markets and American technological innovation. The recent establishment of the Small Business Investment Company Critical Technology (SBICCT) Initiative aims to do just that as it adds another instrument to the DoD’s tool belt in order to “build enduring advantages for the warfighter and for the taxpayer.” Given the favorable terms offered, those looking to deploy capital should carefully review the benefits the SBICCT program has to offer.Continue Reading SBICCT Initiative Adds New Tool to Drive Innovation