Weekly Update for Government Contractors and Commercial Businesses – August 2022

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LITIGATION & DISPUTE RESOLUTION

PilieroMazza Secures Reversal of PPP Loan Forgiveness Denial After Appeal, 08.01.22
PilieroMazza is pleased to announce that attorneys comprising three of the Firm’s core practice groups—Litigation & Dispute Resolution, Government Contracts, and Business & Transactions—successfully obtained reversal of a U.S. Small Business Administration (SBA) decision to deny forgiveness of a client’s Payment Protection Program (PPP) loan. The client obtained a PPP loan of more than $600,000 in early 2021 and sought forgiveness of the full amount of the loan in early 2022. After the client supplied additional information on several occasions in response to SBA’s direct inquiries, SBA eventually denied forgiveness, concluding that the company did not meet the eligibility criteria for the loan and, therefore, was not entitled to loan forgiveness. Read more here.

Upcoming Litigation & Dispute Resolution Presentations

WEBINAR: Small Government Contractors and the FCA: Is More Enforcement on the Horizon? August 31, Jackie Unger and Matt Feinberg. Read more here.

LABOR & EMPLOYMENT

Memorandum of Understanding Between DOJ and the NLRB
The Justice Department’s Antitrust Division and the National Labor Relations Board signed a memorandum of understanding with the goal of better protecting competitive labor markets and ensuring that workers are able to freely exercise their rights under the labor laws. The strengthened partnership seeks to fulfill the objectives of President Biden’s Executive Order on Promoting Competition in the American Economy. Read more here.

DOL Awards Cherokee Nation $1.3M in Incremental Funds for Pandemic Workforce Recovery, Humanitarian Support
The Department of Labor announced an incremental award of $1.3 million to the Cherokee Nation to support continued disaster-relief employment and employment and training services in response to the coronavirus pandemic’s effects on its people. The Cherokee Nation will use the funds to deliver employment and training services and provide humanitarian support to eligible individuals. Read more here.

Upcoming Labor & Employment Presentations

WEBINAR: Non-Displacement, September 9, Nichole Atallah. Read more here.

GOVERNMENT CONTRACTS

Senate Democrats Unveil $850 Billion Defense Spending Proposal
The Senate Appropriations Committee is proposing $850 billion in total national defense spending for fiscal year (FY) 2023 as part of its nearly $1.7 trillion spending package. The bulk of the funds would come from the proposed defense authorization bill, which would appropriate $792.1 billion for the Department of Defense, $63.6 billion above what was enacted for FY 2022. Read more here.

House Passes Chips and Science Bill, Sending Measure to Biden’s Desk
The House passed a $280 billion bill to strengthen the domestic chip manufacturing industry and finance scientific research in a bid to boost U.S. competitiveness on the global stage. The measure has been sent to President Biden’s desk for final approval. Read more here. A summary of the bill is available here.

Small Business Contract Awards Hit Record $154B
Agencies set a new record by awarding 27.2% of total federal contracting awards to small businesses, earning an “A” for the government-wide score—and beating the White House goal of 23% for fiscal year 2021. However, the number of small businesses, women-owned small businesses, and small disadvantaged businesses serving as federal prime contractors has continued to fall as part of a years-long trend. Read more here.

Federal Management Regulation: Internet GOV Domain
The General Services Administration (GSA) adopted without changes the interim rule published January 10, 2022, which implemented provisions of the DOTGOV Online Trust in Government Act of 2020 applicable to GSA that transfer ownership, management, and operation of the DotGov Domain Program from GSA to the Department of Homeland Security Cybersecurity and Infrastructure Security Agency. In the interim rule, GSA removed provisions to the existing jurisdiction of the DotGov domain program that had been delegated to GSA in 1997. The final rule was effective July 26, 2022. Read more here.

DHS Updates Contractors on SAM.gov UEI Backlog
The Department of Homeland Security (DHS) Office of the Chief Procurement Officer held an industry association meeting where they addressed the recent backlog related to the Unique Entity Identifier (UEI) on SAM.gov. According to DHS, vendors that request a UEI must have certain identifying information validated by the General Services Administration before they receive a UEI, including the vendor’s legal business name and address. The accuracy of this information, especially the legal business name and address, was cited as a major contributor to the backlog. For more details and information, including how to check the status of a UEI registration request, please see the slides provided by DHS here.

Government-Wide Cybersecurity Investment Priorities for FY 2024
The Office of Management and Budget and the Office of the National Cyber Director released a memo to Federal civilian agencies identifying the Administration’s investment priorities for their fiscal year (FY) 2024 budget submissions on cybersecurity. The cybersecurity investment priorities identified for FY 2024 are:

  • Zero Trust Implementation;
  • IT Modernization for Federal Cybersecurity by Design;
  • Sector Risk Management Agencies;
  • Securing Infrastructure Investments;
  • Human Capital; and
  • Technology Ecosystems.

Read more here.

CMMC Set for Trial Run, but Criticism Abounds for Highly Anticipated ‘CAP’ Document
The Pentagon’s contractor cybersecurity certification program took a major step forward with confirmation that voluntary third-party assessments will kick off this month, while at the same time a newly released process document is causing consternation in industry. The Cybersecurity Maturity Model Certification (CMMC) program is in the early stages of rulemaking after undergoing a major revision late last year, but voluntary CMMC assessments are scheduled to begin August 22nd and continue for several weeks, officials confirmed. Read more here. Additional coverage of the voluntary CMMC assessments is available here.

SBA Announces Two Federal Advisory Committees to Accelerate American Innovation and Access to Capital for Small Businesses and Startups
The Small Business Administration announced the establishment of two new federal advisory committees, the Invention, Innovation, and Entrepreneurship Advisory Committee and the Investment Capital Advisory Committee, to accelerate support for startups driving critical innovation across the U.S. and increase small businesses’ access to patient capital. Read more here.

Upcoming Government Contracts Presentations

WEBINAR: Identifying and Quantifying Government Contract Claims, August 17, Peter Ford. Read more here.

EVENT: GovCon Mergers and Acquisitions, August 31, Cy Alba. Read more here.

EVENT: How to File a Request for Equitable Adjustment or Claim on Your Contract, August 31, Jon Williams. Read more here.

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.

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