GOVERNMENT CONTRACTS
2024 Chambers USA Ranks PilieroMazza’s Government Contracts Group as “Highly Regarded” Nationwide, PilieroMazza News
PilieroMazza is delighted to share that the 2024 edition of Chambers USA recognizes the Firm’s Government Contracts Group with the highest nationwide ranking. This is the Group’s third consecutive year in the ranking. Additionally, Jessica duHoffmann, who leads the Firm’s Construction Group, was ranked—also for a third consecutive year—for her work in construction law. Visit this link for more information. Read more here.
Cy Alba Featured in PCI Podcast Series “Top 10 Tips and Traps for Bid Protests,” PilieroMazza News
Public Contracting Institute’s Practical Matters GovCon Podcast features PilieroMazza’s Cy Alba in their 3-part podcast series “Top 10 Tips and Traps for Bid Protests.” Cy leads the Firm’s Government Contracts Group, serving as Chair of PilieroMazza’s largest practice group which includes the Bid Protests team. Read more here.
Small Business Administration (SBA) Direct Final Rule: Eliminating Self-Certification for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs)
On June 6, SBA published a direct final rule amending its SDVOSB program to implement Section 864 of the National Defense Authorization Act (NDAA) for Fiscal Year 2024 and to eliminate self-certification for SDVOSBs awarded contracts or subcontracts. Effective October 1, 2024, each prime contract and subcontract award shall be certified by VetCert. The deadline to apply for certification is December 22, 2024. Businesses may continue to self-certify but must submit an application for certification by the deadline. The direct final rule is available here and will be effective August 5, 2024. Comments close July 8, 2024.
Chairman Williams Issues Subpoena to SBA for Agency’s Refusal to Comply with Investigation into Decision to End Collection on Pandemic Loans, House Committee on Small Business, Press Release
Congressman Roger Williams (TX-25), Chairman of the House Committee on Small Business, subpoenaed the Small Business Administration (SBA) regarding the Committee’s investigation into the agency’s decision to end collection on Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loans (COVID EIDL) valued at $100,000 or less and the decision not to sell all or part of the COVID EIDL portfolio. These actions were necessary because of the agency’s refusal to comply with the Committee’s ongoing investigation, instead providing minimal information and ignoring numerous requests for information. Chairman Williams issued the following statement. Read more here.
General Services Administration (GSA) Final Rule: GSA Acquisition Regulation (GSAR), Reduction of Single-use Plastic (SUP) Packaging
On June 6, GSA published a final rule amending the GSAR to add definitions, a provision, and a clause to allow Federal Supply Schedule offerors to provide SUP free packaging and to identify those products under the FSS. This rule is intended to reduce SUP waste. The final rule is available here and will be effective July 8, 2024.
Department of Defense (DOD) Correction: Defense Federal Acquisition Regulation Supplement (DFARS), Limitation on the Acquisition of Certain Goods Other Than United States Goods
On June 6, DOD published a correction to its final rule that was published on May 30, 2024. This correction updates the final rule to correct the rule to require DFARS 252.225-7064, Restriction on Acquisition of Certain Satellite Components, to be used in solicitations and contracts for acquisitions of star trackers and satellites. The correction is available here and is effective as of June 6, 2024.
Federal Acquisition Regulation (FAR) Proposed Rules:
On June 7, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration published two proposed rules amending the FAR. Comments for both rules close August 6, 2024.
- HUBZone Program: The proposed rule will implement section 864 for the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 which will authorize the Small Business Administration’s (SBA) Office of Hearings and Appeals to decide appeals from status protests of Historically Underutilized Business Zone (HUBZone) small business concerns (SBCs). This rule also outlines the information required to be included in HUBZone status protest appeals and removes the requirement for HUBZone SBCs to represent its status as such in the System for Award Management. The proposed rule is available here.
- Subcontracting to Puerto Rican and Covered Territory Small Businesses: This proposed rule will implement sections of NDAA for FY2019 and FY2021 adding Puerto Rico, U.S. Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands to the list of territories from which SBCs can receive preferential treatment under the Mentor-Protégé Program. Further, this rule clarifies that subcontracting plans are not required for firms owned by an Alaska Native Corporation and prime contractors are allowed to rely on subcontractor’s representations of its size and socioeconomic status. The proposed rule is available here.
Upcoming Government Contract Presentations
WEBINAR: Legal Strategies & Capture Planning, June 14, 2024, Isaias “Cy” Alba, IV
CONFERENCE: Negotiating Subcontracts, June 17, 2024, Jacqueline K. Unger
WEBINAR: BOOST Retention and Profits with Leadership Coaching for GovCons, June 25, 2024
PM WEBINAR: Sustainable Procurement: A Closer Look at the New Federal Acquisition Regulation (FAR), July 9, 2024, Katherine B. Burrows, Eric Valle
WEBINAR: FAR Session 14, Parts 22 & 23, July 10, 2024, Sarah L. Nash, Nichole D. Atallah
WEBINAR: Do’s and Don’ts of Subcontracting on Federal Projects, July 11, 2024, Isaias “Cy” Alba, IV, Nichole D. Atallah
CONFERENCE: Using JV’s to Win Work with GSA and Beyond, July 23, 2024, Jon Williams
LABOR & EMPLOYMENT
Proactive Measures for Impending Increases to FLSA Salary Basis for White Collar Employees, PilieroMazza Blog, Nichole D. Atallah
Announced on April 23, 2024, the Department of Labor’s (DOL) Wage and Hour Division’s (WHD) final rule (Rule)—Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees—will begin impacting employers as soon as July 1, 2024. Under the Rule, to maintain employee white-collar exemptions, employers will need to ensure employees are paid a salary of $844 weekly or $43,888 annually ($132,964 annually for highly compensated employees). These thresholds will increase again on January 1, 2025, to $1,128 weekly or $58,656 annually ($151,164 annually for highly compensated employees). Thresholds will increase every three years on July 1, 2024, making the next threshold increase occurring on July 1, 2027. WHD intends to update the threshold levels 150 days before the update is required, meaning we can expect the next update to occur on or before February 1, 2027. While the Rule is likely to face court challenges, meeting both the duties test and the increased salary basis test can be challenging. Employers should start the following processes to ensure they are prepared before July 1. Read more here.
Overtime Expansion Challenges Multiply in Texas Federal Courts, Bloomberg Law
The US Labor Department’s new overtime rule is facing three legal challenges in Texas district courts, as businesses, the state of Texas, and industry lobbying groups try to vacate the rule ahead of its implementation next month. Texas attorney general makes new federalism and state sovereignty claims. Read more here (subscription required).
Public Input on EEOC/NLRB Memo A Must, US Rep. Says, Law360
A coming joint memorandum from the nation’s federal discrimination and labor law watchdogs addressing when workplace speech qualifies as unlawful harassment should be opened to public comment before being published, the Republican chairwoman of the House Education and the Workforce Committee said. Read more here (subscription required).
Upcoming Labor & Employment Presentations
CONFERENCE: New Employment Issues in Government Contracting, July 23, 2024, Sarah L. Nash, Nichole D. Atallah
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
Upcoming False Claims Act / Audits & Investigations Presentations
PM WEBINAR: Common Scenarios Triggering False Claims Act Violations, Part 1: Government Contracts and Cybersecurity, June 26, 2024, Matthew E. Feinberg, Isaias “Cy” Alba, IV, Jacqueline K. Unger
PM WEBINAR: Common Scenarios Triggering False Claims Act Violations, Part 2: Construction and Workforce Issues, June 27, 2024, Matthew E. Feinberg, Jessica A. duHoffmann, Sarah L. Nash
PM WEBINAR: Common Scenarios Triggering False Claims Act Violations, Part 3: Claims and Investigations, July 2, 2024, Matthew E. Feinberg, Mark F. Rosenow
CONSTRUCTION
Rise in Construction Contracts Boost Pentagon’s Strategic Goals, Bloomberg Government
The Defense Department’s construction-related procurement has nearly doubled since the beginning of fiscal 2015 and surpassed $40 billion for the full fiscal year of 2023, according to Bloomberg Government data. Read more here (subscription required).
House Votes to Block Vets’ Access to Gender-Affirming Care, Law360
On June 5, the U.S. House of Representatives passed a $147.5 billion spending bill along mostly party lines funding military construction and the U.S. Department of Veterans Affairs, which would block veterans’ access to gender-affirming care and which the White House has already threatened to veto. Read more here (subscription required).
CYBERSECURITY & DATA PRIVACY
Government Accountability Office (GAO) Report: Cybersecurity: Efforts Initiated to Harmonize Regulations, but Significant Work Remains
On June 5, GAO released a report detailing GAO’s continued efforts to harmonize cybersecurity regulations. This report summarizes GAO’s testimony to the Biden-Harris Administration to address cybersecurity regulation and protect the nation’s critical infrastructure. The full report is available here.
HHS Research Arm to Spend $50M on ‘Revolutionary’ Cyber Tools, Federal News Network
The new project comes amid sustained Congressional attention on the Department of Health and Human Services’ (HHS) role in overseeing healthcare cybersecurity in the wake of the Change Healthcare incident. Amid relentless targeting of the health sector by ransomware attacks, the HHS research arm says it will invest more than $50 million in advanced healthcare cybersecurity tools. Read more here.
CORPORATE & ORGANIZATIONAL GOVERNANCE
Department of the Treasury (Treasury) Final Rule: Surety Companies Doing Business with the United States
On June 10, the Treasury published a final rule amending its regulations regarding the Federal surety bond program to allow for additional companies to be designated as reinsurers, require companies to submit information for financial analysis, and modernize regulatory structure. When applying for a certificate of authority, companies will need to also report changes in operations and/or corporate structure impacting financial statements. The published final rule is available here and will be effective August 9, 2024.
