GOVERNMENT CONTRACTS
Small Business Administration (SBA) Office of Inspector General (OIG) Reports:
- 7(a) Loan Approval for Borrowers with Unresolved COVID-19 Pandemic Loan Compliance Issues: On May 21, SBA’s OIG issued an inspection report assessing SBA’s 7(a) loan approval process for borrowers with unresolved pandemic loan compliance. OIG found that SBA approved and disbursed 5,044 7(a) loans where the borrower had either a Paycheck Protection Program or COVID-19 Economic Injury Disaster loans that had unresolved compliance issues making them potentially ineligible for 7(a) loans. The OIG recommends that SBA review the loans to seek a remedy for those loans that are ineligible. Read more here.
- Spring 2024 Semiannual Report to Congress: On May 23, SBA’s OIG issued its Spring 2024 Semiannual Report to Congress, covering its review of SBA’s oversight and response to the pandemic, small business access to capital, SBA’s Disaster Loan Program, SBA’s procurement assistance, and management of the agency. Read more here.
Government Accountability Office (GAO) Report: Contract Financing: Factors That Influence the Use of Financing Methods and DOD’s Progress on Proposed Actions
On May 22, GAO released a report detailing its review of the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), and DOD guidance regarding use of progress payments and performance-based payments. GAO found that DOD provided more progress payments than performance-based payments in the past ten years. DOD proposed many actions to expand the defense industrial base, several of which are intended to directly assist subcontractors and small businesses. Read more here.
Vendors Readying Bids for Multibillion-Dollar SEWP VI Contract, Bloomberg Government
Technology companies planning to bid for spots on the sixth iteration of NASA’s long-running Solutions for Enterprise Wide Procurement vehicle got the green light Thursday to prepare their IT products and services proposals. July 11 is the bid deadline, with awards possibly by October. Read more here (subscription required).
Legislation Weighing Contractors’ National Security Risk Heads to Senate Floor, Government Executive
One bill would bar federal agencies from contracting with entities that consult with the Chinese government. A Senate committee last week advanced two measures to promote national security in federal contracting and procurement. Read more here.
State Department Seeks Comments on Proposed Federally Funded R&D Centers, ExecutiveGov
The State Department has started soliciting feedback on its proposed plan to establish and sponsor three federally funded research and development centers to facilitate public-private collaboration on several efforts related to modernization and diplomacy. Read more here.
Upcoming Government Contract Presentations
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, June 11, 2024, Isaias “Cy” Alba, IV
NETWORKING: Prime Another Day, June 12, 2024, Isaias “Cy” Alba, IV, Nichole D. Atallah
WEBINAR: Legal Strategies & Capture Planning, June 14, 2024, Isaias “Cy” Alba, IV
CONFERENCE: Negotiating Subcontracts, June 17, 2024, Jacqueline K. Unger
BID PROTESTS
Question the Questions and the Answers: Bid Protest Decision Highlights Need to Clarify Ambiguities Prior to Bidding, PilieroMazza Blog, Katherine B. Burrows, Eric Valle, Dozier L. Gardner, Jr.
Many solicitations for government contracts provide prospective contractors with the opportunity to ask questions. In some instances, the government’s answers to those questions create additional questions. When that’s the case, it’s crucial to seek clarification early; waiting to see how the procurement unfolds can have drastic consequences, leaving contractors with no recourse. A recently issued bid protest decision from the U.S. Court of Federal Claims—Eagle Hill Consulting, LLC v. United States—highlights this important point. Read more here.
CORPORATE & ORGANIZATIONAL GOVERNANCE
California Senate Passes Beneficial Ownership Disclosure Bill, Bloomberg Law
Corporations and limited liability companies would have to reveal their beneficial owners in a publicly available database under a bill passed by the California Senate. Identities would be publicly available, unlike New York law. Anonymous LLCs skirt worker protections, lawmaker says. Read more here (subscription required).
Financial Crimes Enforcement Network (FinCEN) News Release: FinCEN Holds Bilingual Beneficial Ownership Engagement in Puerto Rico
On May 22, FinCEN held an outreach event on beneficial ownership reporting requirements with Puerto Rico’s Secretary of State. This outreach event marks FinCEN’s first bilingual outreach event about FinCEN’s beneficial ownership requirements. Read more here.
LABOR & EMPLOYMENT
Get Expert GovCon Guidance from PilieroMazza, BOOST Blog, Sarah L. Nash, Nichole D. Atallah
Sarah Nash and Nichole Atallah, partners in PilieroMazza’s Labor & Employment Group, helped BOOST learn more about how they help navigate the twists and turns of the GovCon road. Read more here.
Upcoming Labor & Employment Presentations
TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 12, 2024, Nichole D. Atallah
CYBERSECURITY & DATA PRIVACY
Coming Soon! CISA’s Proposed Rule on Government-wide Cybersecurity Reporting Requirements for Government Contractors, PilieroMazza Blog, Isaias “Cy” Alba, IV, Daniel Figuenick, III
The Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) was enacted in 2022 with the primary purpose of preserving national security, economic security, and public health and safety. CIRCIA provides the Director of the Cybersecurity and Infrastructure Security Agency (CISA) authority to enact rules regarding various reporting requirements therein. In early April 2024, CISA released a proposed rule (Rule) with two significant requirements: (1) a 72-hour deadline to report covered cyber incidents and (2) a 24-hour deadline to report ransom payments connected to ransomware attacks. Over the next eleven years, CISA estimates the Rule will result in an estimated $1.4 Billion in costs to industry and affect over 316,000 different entities. PilieroMazza offers a high-level overview of the Rule, its key requirements, and notable issues contractors may want to consider commenting on by June 3. Read more here.
Securities and Exchange Commission (SEC) Director of the Division of Corporation Finance Statement: Disclosure of Cybersecurity Incidents Determined to be Material and Other Cybersecurity Incidents
On May 21, Erik Gerding, the Director of SEC’s Division of Corporation Finance released a statement clarifying that the rules adopted by SEC that require public companies to disclose cybersecurity incidents are required only for material incidents. Erik Gerding also clarified that non-material cybersecurity incidents may still be voluntarily disclosed, and the clarification is not intended to discourage non-material cybersecurity incidents to be reported. Read more here.
Department of Defense (DOD) Memorandum: Class Deviation, Revision 1, Safeguarding Covered Defense Information and Cyber Incident Reporting
On May 22, DOD issued a memorandum, effective immediately, revising the Class Deviation issued on May 2. Revision 1 to the Class Deviation requires the clause in the attachment to be used by contracting officers instead of Defense Federal Acquisition Regulation Supplement (DFARS) 252.204-7012. The Class Deviation requires contractors subject to the DFARS clause to comply with NIST SP 800-171, Revision 2. Read more here.
U.S. Government Urges Federal Contractors to Strengthen Encryption, Bloomberg News
Companies working with the U.S. government may be required to start protecting their data and technology from attacks by quantum computers as soon as July. Department of Commerce is directed to issue new cryptographic standards. Read more here (subscription required).
NIST’s Emerging Tech Work Will Be ‘Very Difficult’ Without Sustained Funding, Director Says, NextGov/FCW
Testifying before a House committee, NIST Director Laurie Locascio highlighted her agency’s ongoing work while making clear the need for more funding. Read more here.
CISA Would Get Millions for Cyber Workforce Outreach to Underserved Communities Under New Bill, NextGov/FCW
The measure comes amid concerns from cybersecurity officials and professionals over how workforce diversity gaps may threaten U.S. cyber defenses. Read more here.
