NATIVE AMERICAN LAW & TRIBAL ADVOCACY
Trials and Trib(e)ulations: SBA Seeks Tribal Consultation on Eligibility, Funding, and Contract Competition, PilieroMazza Tribal Advocate Client Alert, Isaias “Cy” Alba, IV, Katherine B. Burrows
Government contractors who are members of a tribal nation should be aware of the meetings listed below and a listening session the Small Business Administration (SBA) is hosting regarding important developments within the SBA. These developments could affect HUBZone contract eligibility and federal funding and support programs for tribal nations, as well as prohibit Mentor-Protégé Joint Ventures from competing for Multiple Award Contracts. Read more here.
GOVERNMENT CONTRACTS
When a Protégé Rebels Against Its Mentor: The Price Contractors Pay for Not Knowing Fiduciary Duties, PilieroMazza Blog, Isaias “Cy” Alba, IV
What happens when a protégé rebels against its mentor? In a recent decision from the Eleventh Circuit, Yorktown Sys. Grp. Inc., v. Threat Tec LLC1, the court had to deal with such a question after Threat Tec, the protégé and small business in a joint venture, terminated its mentor, Yorktown, in order to acquire its workshare. In this opinion delivered by Judge Ed Carnes, the Eleventh Circuit affirmed the Northern District of Alabama’s decision to grant Yorktown a preliminary injunction based on its breach of fiduciary duty claim. This blog covers the heavy price government contractors in a JV might pay for not knowing what fiduciary duties are owed to them, what duty they owe others, and if any are owed at all. Read more here.
General Services Administration (GSA) Final Rule: GSA Acquisition Regulation (GSAR), Federal Supply Schedule (FSS) Economic Price Adjustment
On August 5, GSA published a final rule to standardize and simplify Multiple Award Schedule (MAS) clauses for economic price adjustments and remove requirements within those clauses to align with commercial standards and practices. The rule is available here and will be effective September 4, 2024.
Department of Homeland Security (DHS) Proposed Rule: Homeland Security Acquisition Regulation (HSAR), Rescinding Reserve Officer Training Corps and Military Recruiting on Campus Clause
On July 31, DHS’s Office of the Chief Procurement Officer published a proposed rule and request for comments from the public regarding updates to remove and reserve an HSAR clause and subpart that prohibits awarding contracts to institutions of higher education that prohibit Reserve Officer Training Corps units and military recruiting on campus. The rule is available here. Comments close September 30, 2024.
Small Business Administration (SBA):
- Press Release: Administrator Guzman Announces Transformation of Customer Experience for Federal Contracting Certifications: On July 31, SBA Administrator Isabel Casillas Guzman announced plans to launch a new, streamlined contracting certifications experience, MySBA Certifications, enabling contractors to apply for and manage multiple federal contracting certifications in one place. The new certifications tool — slated to open for new applicants in September — is a key component of the SBA’s multi-year transformative modernization of the agency’s customer experience. Read more here.
- Press Release: SBA Launches New Business Resilience Guide: On August 1, SBA announced the release of a Business Resilience Guide, a resource for small business owners who may not be familiar with disaster preparation. The guide, which has six sections to plan and recover from disasters, includes best practices and template forms to help mitigate disasters. Read more here.
- Clarification: Clarification to Direct Final Rule on Eliminating Self-Certification for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs): On August 1, SBA published a clarification to its rule published on June 6. This publication merely clarifies that applications for certification are due December 22, 2024. The clarification is available here.
Upcoming Government Contract Presentations
SEMINAR: Negotiating Subcontracts, August 22, 2024, Meghan F. Leemon
TRAINING: Understanding and Avoiding Affiliation for Small Business Government Contractors, August 26, 2024, Meghan F. Leemon, Emily A. Reid
TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, September 10, 2024, Eric Valle, Daniel Figuenick, III,
SEMINAR: 16.207 – Firm-Fixed-Price, Level-of-Effort Term Contracts, September 11, 2024, Isaias “Cy” Alba, IV
TRAINING: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, September 26, 2024, Katherine B. Burrows, Eric Valle
SEMINAR: Common Scenarios Triggering False Claims Act Violations, Part 1: Government Contracts and Cybersecurity, September 26, 2024, Matthew E. Feinberg, Jacqueline K. Unger, Mark F. Rosenow
LABOR & EMPLOYMENT
Newly Increased Health and Welfare Rates on SCA Government Contracts, PilieroMazza Client Alert, Sarah L. Nash, Nichole D. Atallah
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. In July 2024, WHD increased the prevailing H&W fringe benefits from a rate of $4.98 per hour to $5.36 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates have increased from $4.57 per hour to $4.93 per hour. Updated rates of $2.36 per hour (without the EO) and $1.93 (with the EO) also apply to employees in Hawaii covered by the Hawaii Prepaid Health Act. In addition, the DOL will, going forward, discontinue the use of even-numbered wage determinations, which, when incorporated in a contract, required compliance with the H&W fringe benefits on an “average cost” basis. For government contractors with an existing SCA contract, obtaining a new SCA contract, renewing options, or modifying existing contracts with a new wage determination, PilieroMazza covers what you need to know. Read more here.
Senate Appropriators Endorse 2% Pay Raise for Feds Next Year, Government Executive
With neither chamber in Congress willing to override President Biden, his plan to increase federal workers’ pay by 2% on average appears headed for implementation later this year. Read more here.
A Senate Panel Has Advanced Bills Codifying Skills-Based Hiring, Restricting IG Employees’ Political Activity, Government Executive
Bipartisan legislation would add employees in agency offices of inspectors general to the list of those “further restricted” from political activity under the Hatch Act. The Senate Homeland Security and Governmental Affairs Committee unanimously advanced legislation codifying recent changes to the federal hiring process stressing applicants’ skills and experience over educational attainment. Read more here.
Upcoming Labor & Employment Presentations
CONFERENCE: Why Should Business Leaders Care About HR? It’ll Cost You If You Don’t, September 27, 2024, Nichole D. Atallah
CORPORATE & ORGANIZATIONAL GOVERNANCE
U.S. Chamber of Commerce Letter: Coalition Letter to Congress to Delay the Corporate Transparency Act’s Filing Deadline
On July 25, the U.S. Chamber of Commerce sent a letter to Congress, which was signed by 135 associations representing millions of small businesses, requesting a 1-year extension for small business Beneficial Ownership Information reporting under the Corporate Transparency Act. Read more here.
CYBERSECURITY & DATA PRIVACY
New Tech, Personnel Will Help CISA With Coming Rush of Cyber Incident Reports, NextGov/FCW
The Cybersecurity and Infrastructure Security Agency (CISA) is looking to onboard additional technologies and personnel to deal with a coming influx of cyber incident reports, according to a report released by the Government Accountability Office. Read more here.
Senate Panel Advances Cyber Regulatory Harmonization Bill, NextGov/FCW
The bill aims to address overlapping cyber laws that CISOs (Chief Information Security Officers) say have caused compliance headaches. A Senate panel advanced a forerunner cybersecurity regulatory overhaul bill on Wednesday aimed at synchronizing federal-level cybersecurity laws. Read more here.
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1No. 22-13598, 2024 WL 3463501 (July 19, 2024).
