Government Contracts

We authored a chapter in the Court of Federal Claims: Jurisdiction, Practice, and Procedure, a comprehensive treatise focused exclusively on practice before the United States Court of Federal Claims, with detailed discussion and analysis of all areas of the court’s jurisdiction. Our chapter was titled, “Congressional Reference Cases”, which discusses the unique role the…

Just one month after the U.S. District Court for the Eastern District of Texas shut down a Fair Pay and Safe Workplaces final rule, the District Court has enjoined the implementation of the Department of Labor’s (DOL) final rule updating its Fair Labor Standard Act (FLSA) exemptions. Had these gone into effect, they would have had a significant impact on government contractors’ labor costs.

In 2014, President Obama directed DOL to update and modernize its overtime regulations to be consistent with the intent of the FLSA. The FLSA provides for minimum wage and overtime pay protections for those covered by the Act. Exempted employees generally fall into the executive, administrative and professional (EAP) categories, and DOL has used the following three tests to determine whether an exemption applied: salary basis test, salary level test and duties test. “Exempt” employees are not eligible for overtime pay (time and a half) for hours worked over 40 in a work week.Continue Reading DOL Oversteps Overtime Regulations

Government contractors are learning the hard way that agencies need to be kept apprised of major changes within the company during the entire period of bid evaluations. Most recently, the Government Accountability Office (GAO) made an example of Lockheed Martin Integrated Systems, Inc. (LMIS), which was excluded from awards for failure to disclose its spin-off agreement with Leidos.
Continue Reading Buyer Beware: Lessons of Disclosure Learned the Hard Way

I provided comments for an article outlining the potential impact that President-elect Donald Trump’s administration may have within the defense industry. As I point out in the article, “[m]any companies have chosen to exit the government market because of the [recent] regulatory burdens. The compliance obligations have piled on. An enormous amount of regulation has…

On October 24, 2016, U.S. District Judge Marcia Crone granted a preliminary injunction to halt the implementation of the “Fair Pay and Safe Workplaces” Executive Order 13673 (EO 13673), implementing provisions of the Federal Acquisition Regulation (FAR) in the final rule, and Department of Labor (DOL) guidance that impose new reporting requirements on contractors regarding labor law violations.
Continue Reading Fair Pay and Safe Workplaces Not “Fair” to Contractors, According to Texas Judge

I will be in Knoxville today presenting at the 2016 GovCon Seminar hosted by Strategic Consulting Solutions and PDS Consulting Services. My session will be focused on the expansion of the Small Business Administration’s Mentor/ Protégé Program. Specifically, I will discuss how the recent program expansion is creating opportunities for contractors, large and small. The…

I authored an article for Bloomberg BNA outlining the details of the Small Business Administration’s (SBA) new Limitation on Subcontracting rule. This new rule limits the definition of a “similarly situated entity” to first-tier subcontractors. As I point out in the article, “[w]ith the option to team with other similarly situated entities, working essentially as…

Recently, Bass, Berry & Sims co-hosted (along with investment banking firm Bluestone Capital Partners and accounting firm BDO) a CEO panel discussion on “Building Shareholder Value in the Mid-Tier.”  Panelists included Chris Coleman, CEO of LookingGlass Cyber Solutions. Paul Leslie, CEO of Dovel Technologies. and Julian Setian, CEO of SOS International. Tim Garnett of The Avascent Group delivered a keynote presentation. The focus of the event was to discuss strategies for middle-market government contractors to build value for shareholders.
Continue Reading Growth Strategies for the Middle Tier

Since the start of September, the U.S. Treasury Department, Office of Foreign Assets Control (OFAC) has settled with two different companies for alleged violations of U.S. economic sanctions on Iran. The settlements, the first with World Class Technology Corporation (WCT) and the second with PanAmerican Seed Company (PanAmerican), yielded vastly different outcomes.  As summarized below, we think the divergent results serve to illustrate how OFAC weighs various factors in calculating penalty amounts.

WCT.  On September 7, 2016, OFAC settled with WCT for $43,200 based on alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR).  The alleged violations occurred when WCT exported seven shipments of orthodontic devices to Germany, Lebanon and the United Arab Emirates with suspicion that the devices would be exported to Iran.  The devices were collectively valued at almost $60,000.  The exports occurred between April 2008 and July 2010.Continue Reading Iran Sanctions: Recent Enforcement Sheds Light on OFAC Penalty Calculations

Key Points:

  • Dozens more Russian and Ukrainian entities have been designated as prohibited / restricted parties
  • A limited General License authorizes transactions, for a brief period of time, to halt business with a specific Russian entity
  • The designations reflect OFAC’s continued use of the “50 percent rule,” and the challenges of diligence on Russian transaction partners

Designations. On September 1, 2016, the U.S. Office of Foreign Assets Control (OFAC) designated 37 individuals and entities pursuant to its Ukraine-related sanctions program.  OFAC last designated individuals and entities under the Ukraine program in December 2015.
Continue Reading Happy September: OFAC Extends Russia/Ukraine Sanctions

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

Thought Leadership by our Attorneys.