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By: Paul Hawkins
In September, a new Rule issued by the Federal Acquisition Regulation (“FAR”) Council finally went into effect aligning the Small Business Administration’s (“SBA”) and the FAR’s Limitations on Subcontracting Rule ending years of ambiguity on this very important point of compliance for all small business government contractors. Now that the FAR Council has added this needed clarity, small business government contractors should take the time to ensure their compliance house is in order as the consequences non-compliance can be severe. This article outlines the recent background of the Limitations on Subcontracting Rule, provides details on the rule itself, and explains the significant penalties for contractors who fail to properly comply. By: Paul Hawkins
Summary On January 19, 2021, the Federal Acquisition Regulation (FAR) Council published a final rule that implemented a 2019 Executive Order meant to strengthen Buy American Act (BAA) enforcement and standards. The new rule raises the domestic content threshold to 55% for general products and construction materials and a whopping 95% for predominantly iron/steel products. The new rule also significantly increases the price preferences for offerors offering “domestic end products” (from 6% to 20% for large businesses and 12% to 30% for small businesses). Additionally, the new rule includes further updated guidance regarding iron and steel products among other changes. Summary
On December 27th the President signed into law the second major bipartisan COVID-19 relief package. The package releases $900 billion in emergency relief funds to cover costs of vaccine distribution, to extend enhanced unemployment benefits, and to fund $600 stimulus checks for many Americans. The legislation also includes a second round of financial relief for hard hit small businesses. By: Paul Hawkins
On November 16, 2020, the SBA’s long-awaited Final Rule (the “Rule”) amending various small business regulations across a wide variety of areas went into effect. One area of significant change is in the area of size and socioeconomic status recertification. Recertification is an area of immense importance to government contractors engaged in or contemplating merger and acquisition (“M&A”) activity. Whether or not set-aside contracts critical to a small business’s portfolio will still be able to generate revenue at predictable levels post-M&A can materially affect the valuation of a small business government contractor. Before discussing these changes and their potential impact, it is important to understand the background. |
