Georgia Tech Procurement Assistance Center

Multi-faceted SBA final rule clarifies existing regulations and brings long-awaited changes

By

WHAT:  The U.S. Small Business Administration (SBA) published a sweeping final rule implementing several provisions of the National Defense Authorization Acts of 2016 and 2017 and the Recovery Improvements for Small Entities After Disaster Act of 2015 (RISE Act), as well as clarifying existing regulations.  The new rule addresses contracting preferences for small businesses in disaster areas; SBA Procurement Center Representative (PCR) reviews; contracting officer oversight of subcontracting restrictions; limitations on subcontracting exclusions; indirect costs in commercial subcontracting plans; material breach of subcontracting plans; size and status recertifications; and the kit assembly exclusion to the non-manufacturer rule (NMR).

WHEN:  The SBA published the rule on November 29, 2019, effective December 30, 2019.

WHAT DOES IT MEAN FOR INDUSTRY:  SBA’s new rule touches on many different areas, from oversight to contract administration.  While some of these changes will have minimal direct effect on contractors, others could significantly impact the way small and large businesses seek opportunities and structure their agreements and proposals.

Continue reading at:  Wiley Rein

Runway extended: SBA issues final rule implementing five-year period of measurement for receipts-based size standards

By

After a year of uncertainty, the U.S. Small Business Administration (SBA) has issued its long-awaited final rule implementing the Small Business Runway Extension Act of 2018.  The final rule, which becomes effective on January 6, 2020, amends SBA’s receipts-based size standard for its procurement programs to adopt a five-year averaging period for calculating annual revenues of firms and their affiliates in all industries that are subject to SBA’s receipts-based size standards.  In addition, to help firms with declining revenues who might be adversely impacted by five-year period of measurement, SBA’s final rule includes a transition period until January 6, 2022, allowing firms to choose either a three-year averaging period or a five-year averaging period for calculating average annual receipts for size standards purposes.  For our discussion of the proposed rule issued in July 2019, please read the article here.

As SBA explained, a five-year averaging period should “allow more small firms to benefit from SBA’s small business assistance programs by extending their small business status for a longer period.”  It also may result in more large business contracts being set aside for small businesses under the “Rule of Two” because “[w]ith an expanded pool of small businesses, the Federal Government will have more qualified small businesses to choose from.”

Continue reading at:  Holland & Knight

New Year, New HubZone Program Regulations

By

The Small Business Administration (SBA) just rolled out a series of significant changes to the Historically Underutilized Business Zone (HUBZone) Program.  The Final Rule is found here and is now in effect (and has been since December 26, 2019).

The aim of the HUBZone Program is to encourage small business participation in specific geographic areas identified by the Government.  In order to take advantage of the Program’s set-aside contracting opportunities, a business must not only be located in the underutilized area, but must also employ residents of the community (specifically, in order to qualify as a HUBZone, 35% of employees must live in a HUBZone designated area).

These requirements – and the employee residency requirement, in particular – previously made establishing and maintaining HUBZone compliance a challenge.  In fact, running a HUBZone certified company often felt like trying to hit a moving target.

The Final Rule aims to encourage greater use of the HUBZone Program and remove some of the uncertainty outlined above.  Many of the changes are also meant to maximize the benefit to the residents of underutilized communities.

You can continue reading the full article at:  Fox Rothschild LLP

FAR definition of “recruitment fees”: No means no

By

On December 20, 2018, the Federal Acquisition Regulation (FAR) was amended to clarify the FAR’s prohibition on assessing employees with recruitment fees in connection with federal contracts.  The rule provides a final definition of “recruitment fees” and clarifies the FAR’s broad prohibition on federal contractors or subcontractors assessing employees or potential employees with any such fees.

The final rule brings long-awaited clarity to the scope of the prohibition on recruitment fees, as the term has not previously been defined in anti-trafficking regulations.  Upon publication of a proposed rule change in January 2015, the FAR Council invited the public to comment on a draft definition of the term “recruitment fees” in a notice-and-comment process.  The final rule, which took effect on January 22, 2019, incorporates a definition that has been revised pursuant to comments received during that rulemaking process. Government contractors will need to take these new rules into account in their compliance efforts in connection with their supply chains.

Background

On January 29, 2015, DoD, GSA, and NASA issued a final rule amending the FAR to strengthen and enhance the human trafficking-related prohibitions applicable to all federal contracts. The final rule implemented Executive Order (E.O.) 13627, “Strengthening Protections Against Trafficking in Persons in Federal Contracts,” and Title XVII of the National Defense Authorization Act for Fiscal Year 2013, entitled “Ending Trafficking in Government Contracting.”  The amended FAR, which applied to all future contracts and orders under existing indefinite-delivery/indefinite quantity contracts, imposed significant responsibilities on federal contractors and subcontractors to prevent human trafficking and forced labor.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=768098

Contracting News

Read More

Contracting Tips

Read More

GTPAC News

Read More

Georgia Tech News

Read More