Weekly Update Newsletter - September 2020 #3

PilieroMazza PLLC

GOVERNMENT CONTRACTS

BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: OCI, Reps and Warranties, and Assignment of Receivables, September 21, 2020, Kathryn Hickey and David Shafer

Our three-part series on government contractor M&A transactions provides an overview of key regulatory and industry-specific considerations that can impact all aspects of a deal. Part 1 is available here. It covers pre-transaction novation and affiliation issues. In Part 2, we move onto the transaction itself, diving into the potential for organizational conflicts of interest (OCI), regulatory compliance concerns, and the assignment of receivable rights. If ignored, these can impede the achievement of business objectives and lower the value of a deal. [Read More]

BLOG: 5 Things to Know When Protesting an Award, September 18, 2020, Christine Fries
The end-of-fiscal-year spending spike has federal agencies issuing more notices of award, leaving many disappointed offerors keen to file protests. Post-award protests are subject to strict timelines, so you need a plan if you receive an unfavorable notice of award. Here are 5 key things government contractors need to know when protesting an award. [Read More]

House Aims to Pass Stopgap Funding Bill
Bloomberg reported that the House of Representatives plans to vote on a continuing resolution to fund the government after the fiscal year ends on September 30, 2020. Read more here.

GAO Examines Key Attributes of Federal IT Acquisitions
The Government Accountability Office (GAO) released a report examining federal information technology (IT) acquisitions to identify essential mission-critical IT acquisitions across the federal government and their key attributes. GAO selected 16 IT acquisitions, which are particularly critical to missions ranging from national security, to public health and the economy. Read more here.

‘Significant Inaccuracies’ Found in FAS Reporting of Small Business Contracts
The General Services Administration (GSA) Office of Inspector General (OIG) issued a report that analyzed GSA’s Federal Acquisition Service’s (FAS) identification and reporting of small business procurements. The report examined the data FAS entered into the Federal Procurement Data System – Next Generation and identified $89 million in procurements erroneously recorded as small business procurements. Read more here.

GSA Adding Supply Chain Requirements to Major Contracts
FedScoop reported that GSA is working closely with companies to ensure that new supply chain risk management (SCRM) requirements are appearing in major federal contracts. The goal is to ensure companies self certify and comply with crucial requirements established over the last few years. Read more here.

DOD Takes Next Step in Acquisition Reform
Federal News Network reported that the Department of Defense (DOD) took another step toward its goal of modernizing its acquisition system when Deputy Secretary for Defense David Norquist signed DOD Directive 5000.01 into effect on September 8, 2020. DOD Directive 5000.01 governs the roles and responsibilities for DOD’s adaptive acquisition framework. Read more here.

Additional information on changes in DOD Directive 5000.01 is available here.

DOD May Extend Section 889 Supply Chain Waiver
Nextgov reported that DOD and the Office of the Director of National Intelligence are discussing extending a waiver that gives the defense industrial base more time to ensure certain noncritical weapons systems comply with a new rule that removes Chinese telecommunications equipment from the supply chain. Nextgov further reported that DOD also would seek waivers on a case-by-case basis. Read more here.

COVID-19 Response Strains VA Supply Chain While Modernization Delays Continue
GAO released a report that discusses how the Department of Veterans Affairs (VA) is meeting its needs for medical and surgical supplies during the pandemic and the status of ongoing efforts to modernize its supply chain. Read more here.

SBA’s Corrective Actions to Reduce 8(a) Firm Eligibility Risks
SBA’s OIG released a report on corrective actions SBA took for recommendations made in previous OIG audit reports on the 8(a) Business Development Program to determine whether SBA’s corrective actions had effectively reduced risks in determining the eligibility of firms participating in the 8(a) program. Read more here.

New SBA Web Tool Helps with Market Research
SBA announced that small business owners and start-ups across the country can now take advantage of a new business tool, SizeUp, to help them compete and grow. SizeUp helps businesses identify new customers and compare their performance against other businesses in their industry with data collected from hundreds of private and public sources. Read more here.

Upcoming Government Contracts Presentations

WEBINAR: Comparing and Contrasting Set-Aside Advantages, October 7, 2020, Cy Alba. [Read More]

WEBINAR: PCI Subcontracting Summit 2020: Purchasing Systems, October 27, 2020, Cy Alba. [Read More]

CYBERSECURITY & DATA PRIVACY

CLIENT ALERT: CCPA Regulations Approved: Companies Risk Penalties for Noncompliance, September 18, 2020, David Shafer
Effective immediately, the California Office of Administrative Law approved final regulations for the California Consumer Privacy Act (CCPA) on August 14, 2020. The final text of the regulations is available here. The CCPA grants California consumers robust data privacy rights and control over their personal information. Companies that do business with California consumers now risk penalties for noncompliance. [Read More]

DOD Cybersecurity Certification Body Moving Forward Despite Uncertain Funding
Nextgov reported that the first class of assessors being trained by a volunteer accreditation body established to implement DOD’s Cybersecurity Maturity Model Certification program should start receiving approval, but may not have access to continuous monitoring to conduct initial audits as the organization struggles to fund its operations. Read more here.

LABOR & EMPLOYMENT

CLIENT ALERT: Court Vacates Key Parts of DOL “Joint Employer” Rule Months After Implementing, September 16, 2020, Nichole Atallah, Sara Nasseri, and Sarah Nash
On September 8, 2020, the Southern District of New York struck down a recent Department of Labor (DOL) final rule that changed the standard of joint employment under the Fair Labor Standards Act (FLSA). The court determined that the rule conflicted with the FLSA and that the DOL did not properly justify the new change in policy. This decision will expose more companies to potential liability under the FLSA and increase the number of businesses that qualify as joint employers, such as those who use staffing agencies or subcontractors. Employers affected by the decision should prepare to make changes to their workforce and staffing arrangements. [Read More]

CLIENT ALERT: OFCCP Audits Are Coming: 6 Tips to Help You Prepare, September 16, 2020, Sara Nasseri
The Office of Federal Contract Compliance Programs (OFCCP) just released its Fiscal Year 2020 lists of Supply & Service and Construction contractors the agency expects to audit. With enforcement a primary goal of OFCCP, preparing for an audit is key. If your company is on the list, PilieroMazza’s Labor & Employment team suggests you follow these 6 tips to properly prepare for an OFCCP audit to avoid potential penalties and possible loss of your government contract. [Read More]

DOL Revises Regulations to Clarify Paid Leave Requirements Under FFCRA
DOL’s Wage and Hour Division posted revisions to regulations that implemented the paid sick leave and expanded family and medical leave provisions of the Families First Coronavirus Response Act (FFCRA). The revisions clarify workers’ rights and employers’ responsibilities under the FFCRA’s paid leave provisions in light of an August 3, 2020, District Court for the Southern District of New York decision, which found portions of the regulations invalid. Read more here.

Upcoming Labor & Employment Presentations

WEBINAR: Revisiting Executive Compensation and Employee Incentive Plans, October 20, 2020, Nichole Atallah and Kathryn Hickey. [Read More]

BUSINESS & CORPORATE

BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: OCI, Reps and Warranties, and Assignment of Receivables, September 21, 2020, Kathryn Hickey and David Shafer
Our three-part series on government contractor M&A transactions provides an overview of key regulatory and industry-specific considerations that can impact all aspects of a deal. Part 1 is available here. It covers pre-transaction novation and affiliation issues. In Part 2, we move onto the transaction itself, diving into the potential for organizational conflicts of interest (OCI), regulatory compliance concerns, and the assignment of receivable rights. If ignored, these can impede the achievement of business objectives and lower the value of a deal. [Read More]

Upcoming Business & Corporate Presentations

WEBINAR: Revisiting Executive Compensation and Employee Incentive Plans, October 20, 2020, Nichole Atallah and Kathryn Hickey. [Read More]

WEBINAR: Mergers and Acquisitions in Healthcare: Getting Your House In Order, November 4, 2020, Kathryn Hickey. [Read More]

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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