Described in Subpart 9.5, organizational conflicts of interests (OCI) rules can disqualify would-be contractors if they have an unfair competitive advantage through “unequal access to information” as a result of performing another contract. And in both cases, you need to know your customers' needs, how they buy and who buys what. Sole-source set-aside contracts can be issued without a competitive bidding process, which generally occurs when a single business can fulfill the requirements of a contract. Steptoe & Johnson’s Fred Geldon outlines the various requirements contractors face in the government marketplace. However, although the approach to the commercial and government market is similar, the procedures and rules of doing business in the government arena are different—and if these differences are not understood, it is here that problems can occur. It repealed or substantially modified more than 225 statutes and pushed the contracting process into the 21st century. The prime contractor subcontracts $8,000,000 of the janitorial services to another 8(a) BD certified firm. In 1941, the Berry Amendment, as it is known, was passed by Congress to ensure that the Department of Defense only acquires certain end products, material and components (mostly food and natural fiber products) that are of U.S. origin, or from a qualifying country. (4) In the case of a contract for special trade contractors, no more than 75% of the amount paid by the government to the prime may be paid to firms that are not similarly situated. DoD contractors need to be especially aware of these restrictions. You must meet eligibility requirements and certify your business’ socio-economic status before you can bid on a set-aside contract. USAGov is the Official Guide to Government Information and Services, Government Agencies and Elected Officials, Introduction to Federal Government Contracting, How to Become a Federal Government Contractor, The Contract Opportunities Search Tool on beta.SAM.gov, Indian Tribes and Resources for Native Americans, Commonly Requested U.S. Laws and Regulations, How Laws Are Made and How to Research Them, Personal Legal Issues, Documents, and Family History, Who Can and Canât Vote in U.S. Official websites use .gov Read more about it below. (e) Inapplicability of limitations on subcontracting. Contractors cannot rely on instructions or commitments from any other government employee. In no case shall the requirements of paragraph (a)(1) and (a)(2) of this section both apply to the same contract. Federal Acquisition Streamlining Act of 1994 (FASA), Revolutionary in its impact on the federal acquisition process. Here again, the contractor would be entitled to reimbursement for costs incurred. Any work that the similarly situated subcontractor does not perform with its own employees shall be considered subcontracted SBA will also exclude a subcontract to a similarly situated entity from consideration under the ostensible subcontractor rule (§ 121.103(h)(4)). Though the government uses the SBA’s. Determine whether your business is eligible for any special labels (set-aside types) or programs. Recipients are usually “innocent bystanders,” but they can lose their innocence if they further distribute sensitive information. Some important certifications not already discussed include: Beyond contractual sanctions, government contractors face severe consequences for compliance violations, including: The False Claims Act (FCA) (criminal and civil) prohibits knowing attempts to obtain money from the government using false information. Terminations: If you fail to meet the requirements of the contract, the government can cancel for default. Contractors should understand that these opinions do not address all restrictions (for example, they address only generically the restrictions on representations back to the agency). Fred Geldon is currently senior counsel in the Washington, D.C. office of Steptoe & Johnson. It remained in Defense Department appropriations acts until it became law in 1994. For example, the government has the right to unilaterally revise the contract, so long as changes are within the parameters of the contract. Its application is not limited to government contractors, but it has particular resonance to contractors. The story goes that Motorola was contacted by the Defense Department to supply mobile communication devices to be used by our military in "Desert Storm." The cost of material is $500,000. Government rules provide preferences to businesses that qualify for certain socioeconomic status (e.g., small businesses, woman-owned businesses, service-disabled veteran-owned businesses, etc.). The two most important laws you need to be aware of are FAR (Federal Acquisition Regulations) and FASA (Federal Acquisition Streamlining Act). The government issues solicitations such as requests for proposals (RFPs), invitations for bids (IFBs) or requests for quotes (RFQs) for the goods and services they need, he explained. Market research shows that eight of the items can be sourced from small business manufacturers, and the estimated value of these items is $800,000. This is good ethics, good business and – as we shall see – required by law. Inauguration of the President of the United States. 5% for small disadvantaged businesses (also known as 8(a) Business Development), 3% for service-disabled veteran-owned small business, 3% for small businesses in a HUBZone (historically underutilized business zones), In 2017, the federal government spent $507.9 billion. Many of these are on the Internet at the agency's web site. In fact, the government mandates that contractors who are awarded a contract above a certain threshold ($5.5 million to be performed over at least 120 days) MUST have a code of business ethics and conduct and, for large, noncommercial items contractors, a business ethics awareness program and internal control system. Get a custom logo for your business sourced from dozens of designs created by a network of professional artists. A contract is for $1,000,000 and calls for the acquisition of 10 items. Changes to the contract: The government may change the specifications or other terms of the contract “within the general scope of the contract.” If changes are made, your business must meet the new requirements. The government couldn't do that without a signed contract, an impasse. Size standards define the largest size a business can be to participate in government contracting programs designated for small businesses.
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