What are "secondary sanctions"? How do they enforce U.S. sanctions & embargoes against non-U.S. parties? Thad McBride explains to the Society of Corporate Compliance and Ethics. Read more.I recently discussed how the United States uses “secondary sanctions” to enforce U.S. sanctions and embargoes against non-U.S. parties. Under secondary sanctions, the U.S. government restricts U.S. companies and individuals from conducting business with non-U.S. companies and individuals because of those parties’ affiliation with a sanctioned business or person.

As I explained, “[Secondary sanctions] are an example of U.S. extraterritorial jurisdiction at its most extreme. Even if there is no U.S. actor, no goods or parts of U.S. origin, no direct connection whatsoever, the U.S. wants to nevertheless strongly discourage non-U.S. companies from doing business with [sanctioned entities] by, for example, restricting their access to the U.S. market.”Continue Reading Secondary Sanctions in Trade Compliance

I am excited to participate in the “Best Practices for Growing Your Business Through Joint Ventures and Mentor-Protégé Strategies” panel during the East Tennessee Small Business Growth Conference on April 10, 2019 in Clinton, TN.

Visit the event page for more information and registration.

JD Supra Names Todd Overman 2019's Top Author in Government ContractingI am proud to have been named a top author in JDSupra’s 2019 Readers’ Choice Awards for my thought leadership in the government contracting space.

In addition, the post COFC Decision Foreshadows VA Proposed Rule on Service-Disabled Veteran-Owned Small Business Eligibility Rules was one of last year’s top read articles.Continue Reading JD Supra Names Todd Overman “Top Author” in 2019 Reader’s Choice Awards

Don't miss the presentation: The Current State of M&A at AMIS Summit 2019’s Government Contract Industry Forum.

I’m very pleased to share that I will be presenting at the JAMIS Summit 2019’s Government Contract Industry Forum. My presentation will focus on the current state of M&A within the industry.

The JAMIS Summit gathers experts within the finance/accounting, program/project management, purchasing, business development, human resources, and executive leadership arenas to network, learn and exchange insight on current trends and industry knowledge.Continue Reading The Current State of M&A in the Government Contract Industry

Late last month, the Small Business Administration’s (SBA) Office of Hearings & Appeals (OHA) issued a decision adhering to its prior line of cases discussing when present effect will be given to an indication of interest (IOI) between a small business and its potential large business acquirer for size determination purposes.  As with prior cases, OHA conducts a fact-intensive analysis to determine whether the parties had an agreement in principle at the time the small business submits its bid on a federal procurement.  The case, Size Appeal of Enhanced Vision Systems Inc., SBA No. SIZ-5978, offers some helpful tips on how to avoid an affiliation finding when negotiating an IOI and still pursuing small business set-aside opportunities.

Background

On October 5, 2017, the U.S. Department of Veterans Affairs, Office of Acquisition Operations – Strategic Acquisition Center (VA) issued a small business set-aside RFP for in-home video magnification closed-circuit televisions.  The solicitation had a 1,250 employee size standard.  Proposals were due on December 12, 2017.  Enhanced Vision Systems, Inc. (EVS) timely submitted its proposal and was subsequently acquired by Freedom Scientific, Inc., a subsidiary of VFO Holdings, BV.  The contracting officer notified bidders that EVS was the apparent successful offeror.  In response, FedBiz IT Solutions LLC (FedBiz), an unsuccessful offeror, challenged the awardee’s size arguing that EVS had already entered into negotiations at the time of its initial offer, and therefore should be considered affiliated with VFO, the acquiring large business.  The Area Office sustained the protest, finding EVS and VFO affiliated, and therefore exceeded the employee size standard for the procurement.Continue Reading SBA OHA Clarifies Present Effect of “Indications of Interest” When Determining Size Status

Taylor Hillman and I recently discussed how small Alabama businesses can enter the world of federal contracts. The All Small Mentor-Protégé Program (ASMPP) was established by the Small Business Administration (SBA) to extend business development assistance to all small businesses and help them achieve success in competing for federal government contracts. Only 20 of the 511 approved Mentor-Protégé Agreements had Alabama addresses as of May 5, 2018, despite one of the ASMPP’s top 10 district offices being located in Alabama, showing the potential for growth of the program within the state.

The SBA created an all-inclusive program with the Service Disabled Veteran Owned Small Businesses, Women Owned Small Businesses, HUBZones, and others, to streamline and enhance the program. Protégés can learn valuable lessons from mentors, including financial support; assistance in navigating the federal procurement bidding, acquisition and performance processes; business development advice including strategic planning and opportunity identification; and guidance on internal business management systems.
Continue Reading Small Business Entry into Alabama Government Contracts Space

On February 15, 2019, the Government Accountability Office (GAO) issued a consequential decision for those contractors who will compete for federal contracts as part of a mentor-protégé joint venture.  In Ekagra Partners, LLC, B-408685.18, Feb. 15, 2019, the GAO partially sustained the protest on the basis of an improper limitation on the submission of teaming agreement member past performance, and partially denied the protest finding that agencies can limit the number of past performance experience projects that can be submitted in a mentor-protégé joint venture’s proposal in reliance on a large business mentor firm.

In Ekagra, the protestor challenged the terms of the request for proposals (RFP) seeking to award additional Multiple Award Task Order Contracts (MATOCs) under the General Services Administration’s (GSA) One Acquisition Solution for Integrated Services (OASIS) Small Business (SB) Pool 1.  OASIS SB Pool 1 MATOC covers a wide variety of professional services including, but not limited to, consulting, logistics, engineering, scientific, management consulting, project management, and other professional services.Continue Reading GAO Decision Limits Consideration of Mentor’s Past Performance in a Mentor-Protégé Joint Venture

What are the recent changes in rules that could impact your small business and teaming partners in federal contracting in 2019? The Small Business Administration (SBA) and Federal Acquisition Regulatory (FAR) Council have recently finalized and issued proposed rules implementing provisions of past NDAAs that could alter how you team and ensure compliance with set-aside requirements on future procurements.

I will address these issues at an upcoming meeting of the Society of American Military Engineers, as well as highlight some lessons learned from SBA’s All Small Mentor Protégé Program as the program enters its third year.Continue Reading Hot GovCon Topics Impacting Small Business in 2019

  • Company committed multiple apparent violations of U.S. sanctions on North Korea
  • Penalty imposed in part because of company’s “non-existent” sanctions compliance program
  • Settlement underscores need to address supply chain risks

On January 31, 2019, U.S. Treasury Department, Office of Foreign Assets Control (OFAC)announced a $996,080 settlement agreement with e.l.f. Cosmetics, Inc. (ELF) to settle ELF’s potential civil liability for 156 violations of the North Korea Sanctions Regulations.  According to OFAC, fake eyelash kits that ELF believed to be from China were in fact supplied from North Korea.

Presumably very few Americans awake in the middle of the night worrying that North Korean fake eyelashes pose a threat to U.S. national security.  Yet in pursuing this action vigorously, OFAC made clear that it is willing to seek penalties against any U.S. business that directly or indirectly benefits the North Korean economy.  In announcing the settlement, OFAC highlighted the importance of conducting “full-spectrum supply chain due diligence when sourcing products from overseas, particularly in a region in which the DPRK, as well as other comprehensively sanctioned countries or regions, is known to export goods.”Continue Reading OFAC Settles with Cosmetics Company, Reiterates Importance of Supply Chain Compliance

CFIUS & the Government Shutdown - Bloomberg LawI commented about the impact the government shutdown is having on deals that require review and approval by the Committee on Foreign investment in the United States (CFIUS).  CFIUS is the interagency committee authorized to review transactions involving foreign investment in the United States to determine the effect of such transactions on national security.

Due…

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

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