Government Contracting: Key Developments in November 2024

Nov 26, 2024

OASIS+ Program Clears Final Hurdles: Protests Resolved, Contract Awards Imminent

GSA has resolved the final two active protests for the OASIS+ contract program, clearing the way for imminent contract awards. Protests by Wits Solutions and Venergy Group have been officially closed; one was dismissed, and the other was denied by the Government Accountability Office. With zero active GAO protests remaining, the GSA is poised to move forward with issuing formal awards under the OASIS+ program.

Key Details

Resolution of Protests
  • GAO Decisions: The GAO dismissed the protest by Wits Solutions and denied the one from Venergy Group.
  • Outcome: These resolutions mark the end of all known active protests related to the OASIS+ program.
Formal Awards Expected Soon
  • Next Steps: With the protest period concluded, the GSA is expected to issue formal contract awards and Notices to Proceed (NTPs) to selected contractors.
  • Preparation: Awardees should be ready to promptly commence work under the OASIS+ contract vehicle.

To maximize opportunities under OASIS+, contractors should:

  1. Prepare for Task Orders: Review the OASIS+ contract scope and align internal teams to meet upcoming task order requirements.
  2. Develop a Strategy: Build a comprehensive plan for competing effectively within the contract vehicle.

SBA’s Proposed Changes to “Rule of Two” Increase Award Opportunities for Small Business Government Contractors

The Small Business Administration (SBA) has proposed changes to expand the application of the “Rule of Two” to multiple-award contract task and delivery orders, creating additional opportunities for small businesses to compete in federal contracting. The proposed rule aims to ensure that more government contracts are set aside for small businesses, encouraging broader participation and leveling the playing field for small business government contractors.

Key Details:

Expansion of the Rule of Two:
  • Agencies must apply the Rule of Two when awarding task or delivery orders under multiple-award contracts if there is a reasonable expectation of receiving offers from at least two small business contractors that are competitive in price, quality, and delivery.
  • This applies to small business holders of multiple-award contracts, with certain exceptions for orders under the Federal Supply Schedule or other agency-specific exclusions.
Documentation Requirements:
  • When an agency decides not to set aside a task or delivery order, it must document the rationale and share it with the Office of Small and Disadvantaged Business Utilization (OSDBU) or the SBA’s Procurement Center Representative (PCR) for review.
Public Comment Deadline
  • Comments on the proposed rule must be submitted by December 24, 2024.

The proposed changes could significantly benefit small business contractors by:

  • Increasing Contracting Opportunities: By extending the Rule of Two to multiple-award contracts, the rule ensures that more task orders are accessible to small businesses.
  • Enhancing Transparency: Agencies will need to provide clear documentation if they opt not to apply the Rule of Two, offering small businesses insight into procurement decisions.
  • Reducing Barriers: Small business contractors holding multiple-award contracts will face fewer obstacles when competing for task and delivery orders.

Next Steps:

  • Submit Comments: Contractors and stakeholders are encouraged to provide feedback on the proposed rule by visiting regulations.gov (RIN 3245-AH95). The deadline for comments is December 24, 2024.
  • Prepare for Implementation: Small business contractors should review their eligibility and competitive positioning within multiple-award contracts to take advantage of these potential changes.

DoD Final Rule: Affiliate Past Performance Now Considered for Small Business Solicitations

DoD has issued a final rule, effective November 15, 2024, amending the Defense Federal Acquisition Regulation Supplement (DFARS). This amendment implements Section 865 of the Fiscal Year 2024 National Defense Authorization Act (NDAA), requiring contracting officers to consider relevant past performance information from affiliate companies when evaluating small business concerns in competitive solicitations. This new rule is designed to enhance evaluation processes and provide small businesses with greater opportunities in defense contracting.

Key Details

Implementation of Section 865:
  • The rule mandates that contracting officers assess the relevant past performance of affiliate companies when evaluating small business offerors.
  • Affiliates’ performance must be pertinent to the solicitation’s requirements to be considered.
Effective Date:
  • The rule went into effect on November 15, 2024, and applies to all new competitive solicitations involving small business concerns.
Evaluation Criteria:
  • Past performance from affiliate companies is evaluated only if:
  • The small business can demonstrate a meaningful relationship with the affiliate (e.g., shared resources or management).
  • The performance is relevant to the solicitation’s scope.
Documentation Requirements:
  • Small businesses must provide adequate documentation to demonstrate the relevance of affiliate past performance.
  • This may include contracts, performance evaluations, or joint ventures with the affiliate.

Impacts on Small Businesses and Contractors

  • Expanded Evaluation Opportunities: Small businesses can leverage affiliate past performance to bolster their competitive standing, especially if they lack extensive independent performance records.
  • Strategic Advantage: By aligning affiliate past performance with solicitation requirements, small businesses can present a stronger case for their ability to meet contract expectations.
  • Increased Documentation Needs: Offerors must now ensure proper documentation to substantiate claims of affiliate relevance, potentially requiring additional coordination with affiliate companies.
  • More Inclusive Competition: This rule levels the playing field, allowing small businesses with meaningful affiliate relationships to better compete against larger firms.

OFCCP Extends Deadline for Federal Contractors to Object to EEO-1 Data Disclosure

The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has issued a notice inviting federal contractors to object to the disclosure of their 2021 EEO-1 Type 2 Reports under the Freedom of Information Act (FOIA). This notice, published on October 29, 2024, extends the response deadline to December 10, 2024, providing contractors with an opportunity to submit written objections to the release of their data.

Key Details:

FOIA Requests

OFCCP has received two FOIA requests seeking the 2021 and 2022 Type 2 Consolidated EEO-1 Report data of all federal contractors and first-tier subcontractors. Currently, OFCCP possesses only the 2021 data, and this notice pertains solely to that dataset.

Submitter Notice Response Portal

To facilitate the submission of objections, OFCCP has established the Submitter Notice Response Portal. Contractors are encouraged to use this portal to provide their responses.

Objection Criteria

Contractors should address specific questions outlined in the Federal Register Notice when submitting objections, focusing on whether the information is considered confidential commercial or financial data that should be withheld under FOIA Exemption 4.

Implications for Federal Contractors:

  • Data Confidentiality: Contractors concerned about the confidentiality of their EEO-1 data have the opportunity to object to its disclosure, potentially preventing the release of sensitive information.
  • Compliance Requirements: Timely submission of objections is crucial. Contractors must ensure their responses are received by OFCCP no later than 11:59 p.m. on December 10, 2024.
  • Use of the Response Portal: Utilizing the Submitter Notice Response Portal streamlines the objection process, ensuring that responses are properly recorded and considered.

DoD, NASA, GSA Clarify Pre-Award SAM Registration Requirements with Interim Rule

DoD, NASA, and the GSA have issued an interim rule amending the Federal Acquisition Regulation (FAR) to clarify pre-award registration requirements for contractors. Published on November 12, 2024, this rule specifies that contractors must be registered in the System for Award Management (SAM) at the time of bid submission and contract award, but not necessarily in the period between these events.

Key Details:

Clarification of Registration Timing

The interim rule addresses inconsistencies regarding SAM registration timing, ensuring that a lapse in registration after proposal submission, if corrected before contract award, does not render an offeror ineligible.

Avoidance of Misassumptions

By updating SAM registration instructions, the rule aims to prevent false assumptions and resource losses for businesses due to misunderstandings about registration requirements.

Public Comment Period

Interested parties are invited to submit written comments on the interim rule by January 13, 2025. The Regulatory Secretariat Division will consider these inputs in finalizing the regulation.

Implications for Contractors:

  • Compliance Assurance: Contractors should ensure SAM registration is active during bid submission and at contract award to maintain eligibility.
  • Resource Optimization: Understanding the clarified registration requirements can help businesses allocate resources more effectively, avoiding unnecessary administrative efforts.
  • Engagement Opportunity: The public comment period offers contractors a chance to influence the final rule by providing feedback based on their experiences and perspectives.

Next Steps:

  • Review the Interim Rule: Familiarize yourself with the specific changes to the FAR regarding SAM registration timing.
  • Monitor Registration Status: Regularly check your SAM registration status, especially during bid submissions and contract awards, to ensure compliance.
  • Participate in the Comment Process: Consider submitting feedback on the interim rule by the January 13, 2025 deadline to contribute to the finalization of the regulation.

By adhering to these guidelines, contractors can navigate the updated pre-award registration requirements effectively, maintaining compliance and optimizing their participation in federal procurement opportunities.

SBA Certifies Record Number of Diverse-Owned Small Businesses

The U.S. Small Business Administration (SBA) has achieved a significant milestone by certifying over 17,000 diverse-owned small businesses in the current fiscal year, marking a 40% increase from the previous year and setting a new record.

Key Highlights:

Certification Surge

The SBA’s certification programs, including those for women, veterans, socially and economically disadvantaged business owners, and businesses in historically underutilized areas, have collectively certified more than 17,000 small firms this year.

Federal Contracting Success

In fiscal year 2023, 28% of prime government contracts were awarded to small businesses, totaling $178.6 billion—a record high and an increase of $15.7 billion from the previous year.

Future Projections

The SBA anticipates that small businesses will again receive over 28% of federal contracts in fiscal year 2024, continuing the trend of increased participation.

SBA’s Initiatives:

Administrator Isabel Casillas Guzman emphasized the agency’s commitment to expanding access to federal contracts, stating that the SBA has taken bold actions to ensure more small businesses can compete for and win valuable government contracts.

To further support small businesses, the SBA is advocating for an expansion of the “Rule of Two,” which requires government agencies to set aside contracts for small businesses when at least two such businesses are expected to submit reasonable offers. The proposed expansion would apply this rule to multiple-award contracts, potentially generating up to $6 billion more for small firms annually.

Implications for Small Businesses:

These developments reflect the SBA’s ongoing efforts to enhance opportunities for diverse-owned small businesses in the federal contracting arena. The record number of certifications and the proposed policy changes aim to create a more inclusive and competitive environment, enabling small businesses to thrive and contribute significantly to the U.S. economy.

SBA Administrator Guzman Highlights Record Federal Contracting Certifications in FY24, Unveils Streamlined Certification Process for FY25

The U.S. Small Business Administration (SBA) achieved a record-breaking milestone in federal contracting certifications for Fiscal Year 2024 (FY24), certifying over 17,000 small businesses, marking a 40% increase compared to the previous fiscal year. In a major step forward, SBA Administrator Isabel Casillas Guzman also unveiled a new streamlined certification process for FY25, designed to simplify access to federal contracting opportunities for small business owners.

Key Details:

Record Certifications in FY24

Over 17,000 small businesses received federal contracting certifications, with strong representation across programs for women-owned, veteran-owned, socially and economically disadvantaged businesses and HUBZone firms.

New MySBA Certifications Platform

Launching in FY25, the MySBA Certifications platform will enable small business owners to apply for multiple certifications through a single streamlined application, saving time and improving access to resources.

Proposed Expansion of the Rule of Two

The SBA proposed a new procurement rule to apply the “Rule of Two” to multiple-award contracts, significantly increasing small business set-aside opportunities.

Impact on Small Businesses:

  • Enhanced Access to Federal Contracts: The record certifications and proposed changes to the Rule of Two will provide small businesses with greater access to lucrative federal contracting opportunities.
  • Streamlined Processes: The MySBA Certifications platform reduces administrative burdens, enabling small businesses to focus more on growth and competitiveness in federal contracting.

Next Steps:

  • Learn More: Small business owners can explore the MySBA Certifications platform and other resources on the SBA’s official website.
  • Submit Comments on the Rule of Two: The public can review and comment on the proposed procurement rule through regulations.gov to shape future federal contracting opportunities.

NASA Relaunches Mentor-Protégé Program to Support Small Businesses and Strengthen Supply Chains

NASA has announced the relaunch of its Mentor-Protégé Program (MPP), effective November 1, 2024, following a strategic review aimed at enhancing support for small businesses and addressing supply chain gaps

Key Details:

Needs-Based Approach

The revamped MPP will focus on addressing NASA’s supply chain gaps, ensuring the program meets mission-critical needs.

Strategic NAICS Codes

The program will prioritize subcontracts for protégés under specific North American Industry Classification System (NAICS) codes that align with the Space Technology Mission Directorate (STMD) Technology Taxonomies, emphasizing areas such as Research & Development (R&D), Software/Information Technology, and Aerospace Manufacturing.

Inclusivity Expansion

All small businesses, including AbilityOne, Historically Black Colleges and Universities (HBCUs), and Minority Serving Institutions (MSIs), are now eligible to participate as protégés, fostering a more diverse environment for collaboration with NASA.

Implications for Small Businesses:

  • Enhanced Opportunities: The program’s focus on specific NAICS codes and inclusivity expansion provides small businesses with increased opportunities to engage in NASA’s missions.
  • Strategic Alignment: By aligning with NASA’s supply chain needs, small businesses can position themselves as valuable partners in mission-critical areas.
  • Diverse Participation: The inclusion of a broader range of small businesses and institutions promotes diversity and innovation within NASA’s collaborations.

Next Steps for Interested Parties:

  • Stay Informed: For more information about the revamped MPP or the upcoming relaunch, reach out to Mr. David E. Brock, NASA MPP Program Manager, at [email protected] or via phone at (256)-544-7768.
  • Prepare for Engagement: Small businesses should assess their capabilities in relation to NASA’s strategic focus areas and consider applying to participate in the MPP.

DOD, SBA to Pour Over $2.8 Billion Into Small Businesses

The Department of Defense (DoD) and the U.S. Small Business Administration (SBA) have announced a significant investment initiative aimed at bolstering small businesses engaged in critical technology sectors. Through the Small Business Investment Company Critical Technology (SBICCT) initiative, the first group of licensed funds is set to inject over $2.8 billion into more than 1,000 innovative startups and small enterprises.

Key Details:

SBICCT Initiative Overview

Launched in late 2023, the SBICCT initiative seeks to attract and scale private investment into technology areas vital to national and economic security. The program is a collaborative effort between the DoD’s Office of Strategic Capital and the SBA’s Office of Investment and Innovation.

Licensed Funds and Investment Plans

The inaugural group comprises 13 funds, each eligible to receive up to $175 million in SBA-guaranteed loans. These funds collectively plan to invest in over 1,000 portfolio companies focusing on technologies such as advanced materials, space technology, hypersonics, and other areas critical to national security.

Future Projections

Including additional funds nearing the end of the diligence process, the initiative projects to invest over $4 billion in nearly 1,700 companies across all 14 DoD Critical Technology Areas.

Implications for Small Businesses:

  • Enhanced Funding Opportunities: Small businesses developing critical technologies now have increased access to substantial funding, facilitating growth and innovation.
  • Strategic Support: The initiative underscores the government’s commitment to supporting small enterprises that contribute to national security, providing both financial backing and strategic guidance.
  • Market Expansion: Participating companies may gain opportunities to collaborate on defense contracts and expand their market presence within the national security sector.

Next Steps for Small Businesses:

  • Assess Eligibility: Determine if your company’s technology aligns with the DoD’s critical areas to qualify for investment.
  • Engage with Licensed Funds: Reach out to the SBICCT-licensed funds to explore potential investment opportunities and understand the application process.
  • Prepare Proposals: Develop comprehensive business plans and proposals that highlight your technology’s relevance to national security and its potential impact.

This substantial investment by the DoD and SBA represents a pivotal opportunity for small businesses to advance critical technologies, contributing to both economic growth and national security.

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