Government Contracts

Bid protests are a ubiquitous part of government contracting, basically considered part of the normal procurement process. While bid protests can be filed at either the procuring agency level or at the U.S. Court of Federal Claims, the majority of bid protests are filed with the Government Accountability Office (GAO). Recently, on April 15, 2016, GAO released a proposed rule that will make several significant changes to their bid protest process. These proposed changes clarify some elements of the process, while at the same time raise several questions about how these new rules will affect protesters moving forward.
Continue Reading GAO Proposes Significant Changes to its Bid Protest Process

On Thursday, February 25, 2016, the U.S. Department of Labor proposed new rules to implement Executive Order 13706, which requires certain federal contractors to provide qualifying employees with at least seven days of paid sick leave each year, including paid leave for family care. These new rules are scheduled to go into effect by September 30, 2016, and employers who contract with the federal government should prepare for their implementation now. Noncompliance could result in suspension of federal payments or even termination of a federal contract.

The new rules generally apply to any employer who contracts with the federal government, whether pursuant to a prime contract or a subcontract, provided that the contract is either: (1) covered by the Davis-Bacon Act (DBA); (2) covered by the Service Contract Act (SCA); or (3) a contract in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public. A contract is covered by the DBA if the contract is in excess of $2,000 and the principal purpose of the contract is for the construction, alteration and/or repair of public buildings or public works. A contract is covered by the SCA if the contract is in excess of $2,500, and the principal purpose of the contract is to provide services in the United States through the use of service employees.Continue Reading New Mandatory Paid Sick Leave Rules Could Ensnare Unwary Federal Contractors

In A-T Solutions Inc. (A-T) v. R3 Strategic Support Group Inc. (R3), a Virginia federal judge denied a preliminary injunction to prevent a contractor and former teaming partner from bidding on a bomb-disposal contract.

A-T and R3 entered into a teaming agreement to bid on a $50 million bomb-disposal contract in May 2015. The Government canceled the solicitation in July1. After it was reissued in December 2015, R3 notified A-T it no longer wanted to team for the acquisition. A-T subsequently accused R3 of treating the teaming agreement as void, including the provision to keep A-T’s proprietary information confidential. A-T filed suit in the U.S. District Court for the Eastern District of Virginia, filing a motion for preliminary injunction and specific performance to stop R3 from bidding on the contract and to specifically perform under the teaming agreement.Continue Reading This Just In: Teaming Agreements are Still Unenforceable in Virginia

Bass, Berry & Sims attorney Todd Overman authored “Ten Unique Issues to Consider When Buying or Selling a Government Contractor,” outlining 10 helpful tips unique to acquisitions involving government contractors. The areas discussed include:

  1. Structuring the transaction – stock vs. asset purchase?
  2. How to deal with a corporate conversion
  3. Novation tips for the unwary
  4. Will

Next month, I’ll be headed to Las Vegas to discuss the “Fair Pay and Safe Workplaces” proposed rule and accompanying guidance at the Labor Management Cooperation Institute’s (LMCI) Attorneys Conference. The conference aims to bring labor and management lawyers from a diverse array of construction and industrial sectors together to discuss issues of common concern.

In a couple of days, I’ll be headed north to Montreal, Canada, to join leading aerospace and defense investment bankers and advisors at the 2015 Fall Meeting hosted by the International Law Section of the American Bar Association. I’ll be speaking at “Headaches and Hot Spots: A Review of the Changing World of M&A in