GOVERNMENT CONTRACTS
The SBA Is Unveiling New Credit Lines of up to $5 Million to Fund Small Businesses, CNBC
The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC. The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers. The SBA’s new working capital lines will have an annual fee and maximum interest rates based on the prime rate. Read more here.
Office of Management and Budget (OMB) Circular: Acquisition Data Management
On May 30, OMB’s Office of Federal Procurement Policy published a circular entitled, “Strategic Management of Acquisition Data and Information.” OMB intends for this circular to improve access to reliable data and information throughout the acquisition life cycle. OMB anticipates this will achieve more successful contracting outcomes. The circular creates a centralized data management strategy. The circular is available here.
Department of Defense (DOD) Final Rules: Defense Federal Acquisition Regulation Supplement (DFARS):
On May 30, DOD published three final rules amending the DFARS. All are effective as of May 30, 2024.
- Data Requirements for Commercial Products for Major Weapon Systems: This Final Rule amends DFARS 252.215-7010, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, implementing Section 803 of the National Defense Authorization Act for Fiscal Year 2023. The rule clarifies the data required for major weapons systems procurements. This rule allows offerors to give contracting officers access to data, in lieu of submitting it, and to redact customer information. DOD anticipates that this rule will increase the timeliness of data submissions by offerors and reasonableness determinations of the same for contracting officers. The Final Rule is available here.
- Limitation on the Acquisition of Certain Goods Other Than United States Goods: This Final Rule amends the DFARS implementing Sections 845 and 1603 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021, Section 816 of the NDAA for FY 2022, Section 853 of the NDAA for NY 2023, and Section 8016 of the Consolidated Appropriations Act of 2023. This rule adds limitations on the acquisition of star trackers for national security satellites and components thereof. DOD does not anticipate that this rule will have significant impact on the Government, offerors, or contractors. The Final Rule is available here.
- Restriction on Certain Metal Products: This Final Rule amends DFARS 252.225-7052, Restriction on the Acquisition of Certain Magnets, Tantalum, and Tungsten, implementing Section 844 of the National Defense Authorization Act for Fiscal Year 2021. This rule expands the scope of the current DFARS clause to include all upstream mining, refining, separation, and melting of covered materials. The Final Rule is available here.
Department of Defense (DOD) Proposed Rules: Defense Federal Acquisition Regulation Supplement (DFARS):
On May 30, DOD published two proposed rules to amend the DFARS. Comments close July 29, 2024, for both rules.
- Pilot Program to Incentivize Contracting with Employee-Owned Businesses: This Proposed Rule adds a new subpart to the DFARS part 270, Defense Contracting Programs, entitled, “Pilot Program to Incentivize Contracting with Employee-Owned Businesses,” which will implement Section 874 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 and Section 872 of the NDAA for FY 2024. This rule will allow non-competitive sole source awards to qualified businesses. A qualified business under this rule is an S Corporation for which 100 percent of outstanding stock is held through employee stock ownership. The Proposed Rule is available here.
- Procurement Technical Assistance Program: This Proposed Rule will modify DFARS 252.205-7000, Provision of Information to Cooperative Agreement Holders, which will implement Section 853 of the National Defense Authorization Act for Fiscal Year 2024. This rule requires contractors to provide cooperative agreement holders with a list of employees or offices responsible for entering subcontracts under defense contracts. The Proposed Rule is available here.
The White House Fact Sheet: Biden-Harris Administration Takes Action to Expand Access to Capital for Small- and Medium-Sized Climate Businesses
On May 30, the Biden-Harris Administration announced a plan to expand access to capital for small businesses committing to the adoption of clean energy. Through the Small Business Administration’s 504 Loan Program, small businesses will receive funding for clean energy and manufacturing projects. Read more here.
Department of Defense (DOD) Memorandum: Required Conventions and Electronic Data Capture for Exhibit Line Items (ELINs)
On May 23, DOD issued a memorandum emphasizing and highlighting that contracting officers should work with procurement offices to ensure that data for ELINs are accurately provided in procurement packages. DOD emphasizes that clarity is necessary pre-award. 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
LABOR & EMPLOYMENT
Clocking in with PilieroMazza: DOL Increases Salary Basis Test on July 1, 2024: Impact on Federal Government Contractors, PilieroMazza Podcast, Sarah L. Nash, Nichole D. Atallah. Click here to access the podcast.
Equal Employment Opportunity Commission (EEOC) Final Rule: Procedures for Previously Exempt State and Local Government Employee Complaints of Employment Discrimination under Section 304 of the Government Employee Rights Act of 1991
On June 4, EEOC published a final rule to amend existing regulations by which State and local government employees who were previously exempt may bring claims of employment discrimination. The amendments provide for digital transmission of documents, update the regulation based on other regulations or statutes, and make editorial revisions to improve clarity and correct errors. The final rule is available here and will be effective July 5, 2024.
State of Maine Department of Labor (MEDOL) Proposed Rules: Maine Paid Family and Medical Leave Program
On May 20, MEDOL published proposed rules updating its Paid Family and Medical Leave Program. These rules are intended to provide employers with clarity about what constitutes a covered employee and family, nature and extent of attempts to schedule leave, and notice and undue hardship. The rule also clarifies that the MEDOL will be responsible for the enforcement of the rules, the rules do not provide a private right of action, penalties for non-compliant employers, equivalent private and self-insured plans, and employer fund contributions. The proposed rules are available here. MEDOL’s press release is available here. Comments must be made in writing by July 8, 2024, or must be made in-person on June 10, 2024, at 9am ET.
Department of Justice (DOJ) Press Release: Justice Department and Department of Labor Secure Agreements with Tech Company to Resolve Discriminatory “Whites Only” Job Posting
On May 23, DOJ announced that it and the DOL reached separate settlement agreements with a technology company for posting a job advertisement requesting, “‘only US Born Citizens [white] who are local within 60 miles from Dallas, TX [Don’t share with candidates].’ (brackets in original).” DOJ criticizes this company and notes that, “It is shameful that in the 21st century, we continue to see employers [use] ‘whites only’ and ‘only US born’ job postings.” The full press release is available here.
Upcoming Labor & Employment Presentations
TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 12, 2024, Nichole D. Atallah
CYBERSECURITY & DATA PRIVACY
Department of Homeland Security (DHS) Proposed Rule: Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) Reporting Requirements; Correction
On June 3, DHS published a correction to its proposed rule that was published on April 4, 2024. This correction updates the proposed rule to clarify that the applicability of the criteria for transportation system entities was based on a rule not yet published in the Federal Register. As such, DHS’s proposed rule was modified and corrected to address this error. The correction is available here. Comments to the April 4 proposed rule close July 3, 2024.
Watchdog Calls out EPA for Continued Cybersecurity Concerns, Government Executive
The EPA has still not implemented GAO’s 2019 recommendation to develop a process for conducting an organization-wide cybersecurity risk assessment. Read more here.
