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Department of Defense solicitations require a Mission-Essential Contractor Services Plan when the DoD procures “Essential contractor Service and Mission-essential Functions.” DFARS 252.237-7023. The Plan must address the contractor’s ability to provide mission-essential functions during periods of crisis including, for example, how the contractor will supply the personnel and resources required to maintain continuity of essential functions “for up to 30 days or until normal operations can be resumed.” DFARS 252.237-7023(b)(1).
While most Plans contain ...
The SBA has proposed significant changes to the rules governing joint ventures as part of its overhaul of the SBA’s small business program regulations.
The 3-2 Rule: Currently, a joint venture may receive a maximum of three contract awards in a two-year period. The proposed rule eliminates the cap on contract awards, but continues the two year limitation period. Within that period, a joint venture may receive unlimited awards and still comply with SBA rules.
Member Substitution: A joint venture qualifies as a small business as long as each member qualifies individually. Joint ...
President Trump signed into law the Small Business Runway Extension Act of 2018 on December 17th, 2018. The Act modified how the SBA calculates a business’ size for revenue-based size standards. The Act also increased the period of time used in the calculation of a firm’s receipts from three years to five.
Regulations implementing the Act go into effect on January 6th, 2020. However, the final rule permits contractors to elect to use either the three-year or five-year period of measurement for certifications submitted on or before January 6th, 2022. The election period is ...
Defaulting on a contract will likely have a substantial negative impact on your business beyond the losses experienced for the terminated contract. The standard default clause in a government contract states that the government can terminate a contract for default if a contractor fails to deliver supplies or to perform the services or work within the time specified in the contract. However, any number of issues may impact a contractor’s ability to deliver within the agreed-upon schedule. When late delivery seems inevitable despite best efforts, there are actions a contractor ...
Presently 33 states and the District of Columbia have enacted medical marijuana laws. While some of these laws have been on the books for several years, the impact on employers and company policies are still evolving. This issue has created confusion for federal contractors who are required to comply with the Drug-Free Workplace Act (DFWPA) of 1988 (41 U.S.C. 81). The Act requires a federal contractor with a contract greater than the simplified acquisition threshold to maintain a drug-free workplace and lays out specific actions the contractor must take to ensure compliance ...
A string of recent GAO decisions dismissing untimely bid protests suggests it is a good time to review GAO’s timeliness rules. In general, protests challenging patent improprieties in a solicitation must be filed prior to the deadline for the submission of bids or proposals. 4 C.F.R. 21.2(a)(1). GAO rules do not permit a contractor to ignore an obvious error in the terms of a solicitation and protest after they learn the government has awarded the contract to another company. Protests other than those challenging an apparent solicitation error must be filed no later than ten days ...
Most government contracts include a clause giving the government the right to terminate the contract, or any part thereof, for its sole convenience “when it is in the best interests of the government.” FAR Parts 49, 12, 13, and 31 establish the regulatory requirements for termination and settlement of government contracts. The mechanics are specific. Upon receipt of the notice of termination, the prime contractor should immediately stop all work and terminate all subcontracts related to the terminated portion of the prime contract. Inventory disposal schedules must be ...
OTA Overview
The Department of Defense can issue Other Transaction Agreements (“OTA”) for research, prototypes, and production. 10 U.S.C. § 2371b. Research OTAs are available for basic, applied, and advanced research projects. The DoD may also acquire prototypes using OTAs. Production OTAs are only permitted where the government has previously acquired a prototype under an earlier OTA. Additionally, the solicitation for the original prototype must have notified offerors that the government reserved the right to issue a follow-on Production OTA.
OTAs at the GAO
In a ...