Weekly Update Newsletter - October 2014 #2

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GOVERNMENT CONTRACTS 

SBA Data Shows Large Firms are Nabbing Contracts Reserved for Small Businesses

Federal procurement data show that large companies, including leading defense contractors, last year received millions of dollars in contracts intended for small and disadvantaged businesses. The data was obtained by the American Small Business League, which fought a multi-year court battle to obtain the information from the Small Business Administration (SBA).   The league obtained an Excel file, from the SBA, containing nearly 107,000 entries of vendors that received $83 billion in small business contracts in fiscal year 2013. While the SBA annually releases analytical information about small business contracting, it took a lawsuit from the league to force the agency to release its list of vendors who receive small business contracts.  The agency sought to protect its list from disclosure on the grounds that it is compiled from data it gathers from a General Services Administration database. U.S. District Judge Marilyn Hall Patel found that reasoning flawed and in a 2008 ruling ordered the information released. This is the first year SBA has provided the information without a court battle.   SBA Data Shows Large Firms are Nabbing Contracts Reserved for Small Businesses. 

DOL Issues Final Rule Establishing a Minimum Wage for Contractors

The Department of Labor (DOL) issued a final rule to implement Executive Order 13658, Establishing a Minimum Wage for Contractors, which was signed by President Barack Obama on February 12, 2014, 79 Fed. Reg. 60634. Executive Order 13658 states that the Federal Government's procurement interests in economy and efficiency are promoted when the Federal Government contracts with sources that adequately compensate their workers. The Executive Order therefore seeks to raise the hourly minimum wage paid by those contractors to workers performing work on covered Federal contracts to $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor. The Executive Order directed the Secretary to issue regulations by October 1, 2014, to the extent permitted by law and consistent with the requirements of the Federal Property and Administrative Services Act, to implement the Order's requirements. This final rule therefore establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 13658. As required by the Order, the final rule incorporates to the extent practicable existing definitions, procedures, remedies, and enforcement processes under the Fair Labor Standards Act, the Service Contract Act, and the Davis-Bacon Act.  The final rule will be effective on December 8, 2014. 

DOL Issues Policy Statement Regarding the Application of the FLSA to Domestic Service; Announcement of Time-Limited Non-Enforcement Policy

The Department of Labor (DOL) issued a policy statement regarding its October 1, 2013, final rule amending regulations regarding domestic service employment, which extends Fair Labor Standards Act (FLSA) protections to most home care workers effective on January 1, 2015, 79 Fed. Reg. 60974. This document announces a time- limited non-enforcement policy. For six months, from January 1, 2015 to June 30, 2015, DOL will not bring enforcement actions against any employer as to violations of FLSA obligations resulting from the amended regulations. For the following six months, from July 1, 2015 to December 31, 2015, DOL will exercise prosecutorial discretion in determining whether to bring enforcement actions, with particular consideration given to the extent to which States and other entities have made good faith efforts to bring their home care programs into compliance with the FLSA since promulgation of the Final Rule.  

Committee for Purchase From People Who Are Blind or Severely Disabled 

The Following Notices Were Issued:

79 Fed. Reg. 59750, October 3, 2014, proposing to add products (Sweatshirt, Physical Fitness, USMC, Unisex, Long Sleeve, T-Shirt, Mesh, Physical Fitness, USMC, Unisex, Short Sleeve, Work Lamp) and services (Custodial Service, Architect of the Capitol, Dirksen Senate Office Building, 1st and C Streets NE., Washington, DC) and delete a service (Janitorial/,Custodial Service, Department of Agriculture, Kootenai National Forest, Libby Ranger Station, Libby, MT) from the Procurement List.  Comments on the proposed additions and deletion are due November 3, 2004.  

79 Fed. Reg. 59751, October 3, 2014, deleting a product (Fire Extinguisher) and a service (Catering Service, Military Entrance Processing Station, Leo O'Brien Federal Building, Suite 810, Albany, NY) from the Procurement List.  The deletions will be effective November 3, 2014. 

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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