Weekly Update for Government Contractors and Commercial Businesses – August 2024 #3

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GOVERNMENT CONTRACTS

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 Health and Human Services (HHS) Proposed Rule: HHS Acquisition Regulation (HHSAR), Information Technology (IT); Standards for Health IT

On August 9, HHS published a proposed rule and request for comments from the public regarding proposed amendments and updates to the HHSAR to implement procurement requirements for health IT to meet the requirements and standards promulgated by the Office of the National Coordinator for Health Information Technology. The rule is available here. Comments close October 8, 2024.

New Senate Bill Aims to Codify Chevron Deference with Congressional Intent, Government Executive

Sen. Ron Wyden’s, D-Ore., Restoring Congressional Authority Act would reimpose judicial deference to federal agencies in clarifying regulatory intent after the Supreme Court struck down a 40-year precedent in June. Read more here.

Industry Pressure Forces NASA to Press Pause on SEWP VI, Federal News Network

Increasing pressure from the industry about the lack of clarity of the SEWP VI solicitation has forced NASA to hit a pause on its governmentwide acquisition contract. Read more 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. LeemonEmily A. Reid 

TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, September 10, 2024, Eric ValleDaniel 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. BurrowsEric Valle

SEMINAR: Common Scenarios Triggering False Claims Act Violations, Part 1: Government Contracts and Cybersecurity, September 26, 2024, Matthew E. FeinbergJacqueline K. UngerMark F. Rosenow

SEMINAR: Common Scenarios Triggering False Claims Act Violations, Part 3: Claims and Investigations, October 10, 2024, Matthew E. FeinbergMark F. Rosenow

LABOR & EMPLOYMENT 

Supreme Court Opens Door to Broader Spectrum of Employment Discrimination Cases, PilieroMazza Blog, Sarah NashGeorgianne Kokenis

In April 2024, the U.S. Supreme Court held that transferring an employee to a new position with the same rank and pay may constitute an adverse action under Title VII. The recent decision in Muldrow v. City of St. Louis, Missouri may have a substantial impact on employers. Employers nationwide should be aware of the new standard, implement internal processes to avoid discrimination claims, and understand how these changes will impact future personnel decisions. 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.

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

LITIGATION & DISPUTE RESOLUTION

Managing Small Business Risk, Part I: Expect Litigation Even When It Seems Unlikely, PilieroMazza Blog, Mark F. Rosenow

No business wants to be investigated or charged by the government, sued by a competitor, or compelled to defend against an employment lawsuit. The risks of such litigation to any company are so predictable, though, that large businesses with in-house legal departments regularly employ attorneys focusing exclusively on these practices. Prior to the start of any specific dispute, lawyers in litigation and related roles guide business leaders and units in shaping internal policies and developing cultures of compliance. Indeed, the right operating guidelines—when properly drafted to insulate businesses against current and future legal challenges, widely publicized within the organization, and closely followed—will mitigate litigation-related risks and can justify the expense involved.

But what should small businesses without an in-house legal team do? And are there best practices, easily implemented and not requiring huge costs, available for businesses across industries? This blog series answers these questions and more. Read more here.

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.

CONSTRUCTION

Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction, PilieroMazza Blog, Matt Feinberg, Jon Neri

Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or independent contractor is not always easy to make and depends on the specific policies and practices applicable to each worker. Making the correct decision is critical. Consistent with numerous other jurisdictions across the country, a new lawsuit filed by the District of Columbia Attorney General demonstrates the District’s intent to curb instances of worker misclassification particularly within the construction industry. Construction companies must be vigilant when making the determination of whether a worker must be classified as an employee or independent contractor to avoid potentially harsh penalties that may arise when a worker is misclassified. Read more here.

S.211, SMART Leasing Act, Passed Senate

On August 2, S.211 passed in the Senate with unanimous consent. This Bill was first introduced by Sen. Peters (D-MI) on February 1, 2023, in the Committee of Homeland Security and Governmental Affairs. If enacted, this Bill will allow the General Services Administration to implement a pilot program allowing Federal agencies to lease underutilized properties and use rent payments to reduce deficit and fund projects. The full text of the Bill as engrossed in the Senate is available here.

Upcoming Construction Presentations

SEMINAR: Common Scenarios Triggering False Claims Act Violations, Part 2: Construction and Workforce Issues, October 1, 2024, Matthew E. FeinbergJessica A. duHoffmannSarah L. Nash

CYBERSECURITY & DATA PRIVACY

Win or Lose: Using CMMC 2.0 Proposed Rule to Position Yourself for DOD Contracts, Cy Alba, Daniel Figuenick

The Cybersecurity Maturity Model Certification (CMMC) Program has been a headache for many defense contractors since the idea was first introduced in 2019. The program seeks to protect unclassified information, including federal contract information (FCI) and controlled unclassified information (CUI) not intended for public release, shared by the Department of Defense (DOD) with its contractors and subcontractors. In December 2023, the DOD proposed a rule to formally codify the CMMC Program in a phased rollout. The DOD has now released a proposed rule (Proposed Rule) relevant to Phase 1, another steps towards the ultimate goal of requiring certain DOD contractors handling sensitive information to achieve a particular CMMC level as a condition of contract award. DOD contractors that process, store, or transmit FCI or CUI (or plan to do so in the future) must become familiar with the CMMC Program as it could ‘make-or-break’ winning or losing major government contracts. Read more here.

Cable Biz Likely To Oppose Cybersecurity Reporting Rules, Law360

Cable providers bristled at federal agencies’ plans to impose new requirements aimed at beefing up network security, arguing that rules for reporting cyberattacks within certain time frames and sharing detailed security plans would be overly burdensome. Read more here (subscription required). 

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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