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​The Small Business Blog

TIPS * UPDATES * INDUSTRY NEWS

SBA Issues Final Rule Implementing Provisions of the 2013 NDAA Pertaining to Limits on Subcontracting

6/11/2016

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On May 31, 2016, the Small Business Administration issued a Final Rule implementing provisions of the 2013 National Defense Authorization Act, which pertain to performance requirements applicable to small business subcontracting, affiliation and joint ventures.   Holomua Consulting Group submitted comments in response to the Proposed Rule and we are pleased to note that many of our comments were taken into consideration and our suggestions reflected in the Final Rule.  The Final Rule takes effect on June 30, 2016.  The following is a summary of the major points of the Final Rule.

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SBA OHA:  Compliance With Limits on Subcontracting Are Part of Responsibility Determination Not Size Determination

3/14/2016

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On January 19, 2016, the SBA Office of Hearings and Appeals (OHA) issued a decision in the Matter of:  Prosouth Construction Svcs, LLC.   This appeal arose out of Prosouth's size protest against Birmingham Industrial Construction, LLC in conjunction with a construction procurement. In its protest, Prosouth, an unsuccessful offeror, alleged generally that Birmingham was not a small business under the applicable $15 million size standard and questioned whether Birmingham had the ability to self-perform at least 25% of the cost of contract performance, in accordance with the applicable limits on subcontracting.

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Affiliation:  Hiring Subcontractor's Project Manager Does Not Violate the Ostensible Contractor Rule

12/5/2015

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On October 29, 2015, the Small Business Administration (SBA) Office of Hearings and Appeals (OHA) issued a decision in the Size Appeal of:  Giacare and Medtrust JV, LLC, SBA No. SIZ-5690.  The appeal, filed by GiaCare and Medtrust JV, LLC (an unsuccessful offeror) arose from a size determination which concluded that Global Dynamics, LLC (GDL) was not affiliated with its subcontractor, OMV Medical, Inc. (OMV) and was therefore a small business.

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Contractor Indicted for 8(a) Contract Fraud

11/30/2015

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On November 16, 2015, the United States Department of Justice issued a Press Release announcing that a Federal grand jury in Maryland had indicted Anthony "Tony" Nwagbara Daniels (age 59 of Silver Springs, Maryland) on wire fraud charges arising from a scheme to defraud the United States by fraudulently obtaining a government contract through the SBA's 8(a) Business Development Program from 2011 through 2014.

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GAO Report on Defense Cybersecurity:  Opportunities Exist for DOD To Share Cybersecurity Resources with Small Businesses

10/1/2015

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On September 24, 2015, the Government Accountability Office (GAO) published a report titled:  "Defense Cybersecurity - Opportunities Exist for DOD to Share Cybersecurity Resources With Small Businesses" which addresses "the extent to which the DOD Office of Small Business Programs (OSBP) has integrated cybersecurity into its existing outreach and education efforts for defense small business."  GAO's review and subsequent Report were done as a result of a provision in the Joint Explanatory Statement accompanying the 2015 NDAA which required GAO to perform such an assessment. 

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OFCCP Issues Final Rule Implementing Pay Transparency Executive Order

9/27/2015

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On September 11, 2015 the Office of Federal Contractor Compliance Programs (OFCCP) published its Final Rule on Pay Transparency, which implements the Non-Retaliation for Disclosure of Compensation Information Executive Order which was signed by President Obama on April 8, 2014.  The Final Rule takes effect on January 11, 2016.  
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Holomua Consulting Group's Comments On The SBA Proposed Limitations on Subcontracting Rule

3/30/2015

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On December 29, 2014, the SBA issued its Proposed Rule announcing changes to the calculation(s) of the limitations on subcontracting, as well as other changes implemented by the 2013 National Defense Authorization Act.   Comments were initially due on February 27, 2015; however, as we previously reported, the SBA reopened the comment period due to requests to extend the deadline and the scope/significance of the proposed rule.  Comments are now due on April 6, 2015.
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GAO Issues Report on 8(a) Subcontracting Limitations

9/18/2014

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In response to a request by Senator Claire McCaskill (D-MO) to review how federal agencies monitor the work performed by subcontractors under 8(a) contracts, the GAO released a report on September 16, 2014 titled 8(a) Subcontracting Limitations:  Continued Noncompliance with Monitoring Requirements Signals Need for Regulatory Change.  The GAO previously considered this same issue in April 2006 and January 2012, and in both instances the GAO found that subcontracting limitations were not being monitored by contracting officers.

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