Government Contracting: Key Developments in September 2024

NASA Extends SEWP VI Proposal Deadline to December 18th, 2024

NASA has extended the submission deadline for the SEWP VI proposal to December 18th, 2024, while also outlining a series of important updates for contractors, including responses to previously submitted questions, an additional Q&A period, and a scheduled Industry Day in November 2024. The extended timeline provides contractors with further clarity on the solicitation process and ample time to prepare their proposals.

Key Details:

• Proposal Submission Deadline: December 18th, 2024, 12:00 PM EST.
• Question Responses: NASA will release answers to ~6,800 industry-submitted questions from October 1st to October 22nd, 2024.
• Extended Question Submission: October 22nd–24th, 2024.
• Industry Day: Scheduled for November 2024.
• Final Amendments and Responses: Released no later than November 4th, 2024.
• Responses to Submitted Questions: NASA will respond to all previously submitted questions in three batches between October 1st and 22nd, 2024. These answers will be available on the SEWP VI Q&A Comment Tool.
• New Question Submission Period: Contractors can submit additional questions between October 22nd and October 24th, 2024.
• Release of Amendments: NASA will issue any necessary solicitation amendments and respond to additional questions by November 4th, 2024.

The extended deadlines and added Q&A period allow for greater clarity on technical aspects of the solicitation. The Industry Day in November will be a crucial opportunity for contractors to engage directly with NASA, address concerns, and understand any changes that could impact their proposals. Contractors are encouraged to remain proactive in tracking updates on SAM.gov and the SEWP Website, ensuring they meet all new deadlines and submit competitive, well-informed proposals.

GSA Requests OASIS+ Proposal Extensions Through April 20, 2025, for Existing Offerors

The General Services Administration (GSA) is requesting an extension for the validity of OASIS+ proposals submitted by October 20, 2023, through April 20, 2025, to finalize the evaluation and award process. This request applies only to offerors who submitted proposals within the required timeframe.

Key Action Items for Offerors:

• Offer Extension Deadline: Offerors must complete, sign, and submit an offer extension letter through the OASIS+ Submission Portal (OSP/Symphony) no later than 4:00 PM ET on October 8, 2024.
• Submission Instructions: Offerors are encouraged to use the template letter, though they may also submit a custom letter as long as it clearly states an agreement to extend the offer expiration date to April 20, 2025, for all OASIS+ proposals without conditions.
• Consequences of Non-Response: Offerors that do not extend their proposal validity will not be eligible for an award if made after the current proposal expiration date of October 19, 2024. Expired offers cannot be accepted to form a binding contract.

Submission Process:

1. Complete and Sign the Offer Extension Letter: Offerors may use the fillable template or draft a custom letter on company letterhead.
2. Submit Through OSP: Upload the signed letter to the OASIS+ Submission Portal (OSP/Symphony) following the instructions found in the “Links” section of the SAM.gov posting
3. Submission Deadline: Ensure the letter is uploaded by 4:00 PM ET on October 8, 2024.

For offerors participating in the OASIS+ Unrestricted solicitation, extending the validity of their proposals is essential to remain eligible for consideration as GSA continues the evaluation and award process. Offerors who do not meet the October 8, 2024, deadline to extend their offer validity will risk disqualification if awards are made after October 19, 2024. The GSA has made the process straightforward by providing a template and clear instructions, ensuring that all offerors have a chance to extend their proposals efficiently. Contractors are encouraged to act promptly to avoid missing this critical deadline.

SDVOSB Self-Certification for Subcontracting Ends December 22, 2024

The SBA has announced that self-certification for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) will end for federal subcontracts on December 22, 2024. This change is part of the implementation of the National Defense Authorization Act for Fiscal Year 2024 (NDAA 2024), requiring SDVOSBs to be certified through the SBA’s Veteran Small Business Certification (VetCert) Program to qualify for subcontracting opportunities that count toward federal agency goals.

Key Details:

• End of Self-Certification: As of December 22, 2024, SDVOSBs will no longer be permitted to self-certify for subcontracts that contribute to federal agency subcontracting goals. Certification through the SBA’s VetCert program will be mandatory.
• Compliance Deadline: Businesses currently self-certified for subcontracting must transition to VetCert certification by December 22, 2024, to remain eligible for subcontracting opportunities.
• Final Comment Period Deadline: Comments on this rule were accepted through July 8, 2024, as published in the Federal Register. The rule is now scheduled to take effect without further action unless major objections were raised.

How to Get Certified:

1. VetCert Program: SDVOSBs must be certified through the SBA’s Veteran Small Business Certification Program (VetCert) to maintain eligibility for federal contracts and subcontracts. More information and certification guidelines can be found on the SBA’s website.
2. Transition Process: SDVOSBs currently operating under self-certification should begin the certification process with SBA as soon as possible to meet the December 22, 2024, deadline and ensure there is no interruption in eligibility for federal opportunities.

The elimination of self-certification is a significant change for SDVOSBs seeking to compete for federal subcontracts. Businesses will need to act promptly to ensure they are certified through VetCert before the December 22, 2024 deadline. Failure to obtain certification could result in loss of eligibility for key federal opportunities, impacting growth and contracts. The transition to VetCert is aimed at providing more stringent verification, ensuring that only qualified businesses benefit from set-aside programs.

SBA Releases Revised Size Standards Methodology: Key Changes for Small Business Eligibility

The U.S. Small Business Administration (SBA) has published a revised white paper, “SBA’s Size Standards Methodology (June 2024)”, detailing how it establishes, reviews, and revises size standards for small businesses. This revised methodology will be applied in the upcoming third five-year review of size standards, as required by the Small Business Jobs Act of 2010. The revisions will impact how businesses qualify for small business assistance programs and federal contracting opportunities.

Key Details:

• Revised Size Standards Methodology: The updated methodology will guide SBA in determining the size thresholds for what qualifies as a small business in different industries, considering factors such as average firm size, asset size, and the structure of competition within industries.
• Third Five-Year Review: SBA will use this methodology to evaluate and potentially revise size standards for industries across the U.S. as part of its third mandated five-year review.
• Major Changes: SBA is maintaining its “percentile” approach but has introduced two key changes:

1. Replacing the Federal contracting factor’s calculation method with a disparity ratio approach.
2. Using FPDS-NG and SAM data to calculate percentile values for evaluating size standards at sub-industry levels.

• September 12, 2024: The revised methodology became available to the public on September 12, 2024, and is now in effect. The full white paper can be accessed on the SBA’s website.

The changes in the size standards methodology will affect how businesses qualify as small for federal assistance programs, such as Federal contracting. By adjusting the criteria for size standards, SBA aims to better reflect current economic conditions and industry structures. Businesses currently close to size thresholds may find themselves newly eligible or ineligible as size standards shift. Additionally, the use of Federal Procurement Data System (FPDS-NG) and System for Award Management (SAM) data for evaluating certain sub-industry levels means that firms engaged in federal contracting will see more accurate assessments of their size relative to competitors.

What Contractors Should Know About CMMC: Cybersecurity Requirements and Upcoming Changes

The Cybersecurity Maturity Model Certification (CMMC) program is the Department of Defense’s (DoD) effort to enforce cybersecurity requirements for contractors in the defense industrial base. Although the CMMC framework has been in development for several years, it is now becoming a mandatory requirement for defense contracts. Here’s what contractors need to know as CMMC becomes more integral to defense contracting.

• Upcoming Deadlines: The final rule for CMMC is expected in the fourth quarter of 2024. After that, contracts will require third-party certification to ensure contractors meet cybersecurity standards.
• Enforcement of Existing Requirements: CMMC isn’t entirely new — the requirements have been in place under the DFARS 7012 clause for almost a decade. Contractors have been required to implement fundamental cybersecurity practices such as multi factor authentication, disk encryption, and incident response policies. The significant change now is the introduction of third-party audits to verify compliance.

Contractors should review their current cybersecurity measures and ensure they meet the CMMC requirements. Many businesses will need to upgrade their cybersecurity infrastructure and prepare for the third-party audit process. By enforcing CMMC, the DoD ensures that every contractor in its supply chain meets the same cybersecurity standards, creating a level playing field. This provides the government with greater confidence that its contractors are adequately protecting sensitive data.

New Rules Coming for Small Business Contractor Mentor-Protégé Arrangements

The Small Business Administration (SBA) has proposed new rule changes to the popular mentor-protégé partnerships for small business contractors. These changes are aimed at refining how mentor-protégé relationships are evaluated, particularly in relation to past performance and joint venture structures. The SBA’s updates seem to address concerns about the widespread success of these arrangements and how agencies assess protégés in federal contracts.

Key Updates in Mentor-Protégé Program:

• Joint Venture Flexibility: Under an approved mentor-protégé agreement, large and small businesses can form joint ventures. If the protégé meets requirements such as 8(a) or SDVOSB status, the joint venture can qualify as a small business, providing the mentor and protégé an advantage in federal contracts.
• Mentor-Protégé Success: The SBA’s mentor-protégé program has grown significantly, with nearly 2,000 approved partnerships. This program allows larger businesses to mentor smaller firms, providing them with valuable assistance, such as expertise and resources. A key advantage of this arrangement is that it offers an affiliation exception, meaning the mentor’s support does not count as affiliation under SBA rules, and the mentor-protégé joint venture can qualify as a small business in certain categories.
• Clarification on Mentor-Protégé Relationships: The SBA is also clarifying that while joint ventures may be formed under a mentor-protégé agreement, the protégé must actively contribute to the contract work and not simply rely on the mentor’s experience. This helps ensure that protégés are genuinely benefiting from these arrangements.

The proposed rule changes will impact how small business contractors approach mentor-protégé relationships, particularly in joint ventures. Contractors will need to ensure that past performance evaluations accurately reflect the protégé’s role, without being overly reliant on the mentor’s experience. This shift aims to strike a balance where protégés gain real experience while still benefiting from mentor guidance.

• Comment Deadline: The SBA is currently accepting comments on these proposed rules until October 7, 2024. Contractors should provide feedback if they have concerns or suggestions regarding the changes.
• Additional Clarifications: The SBA is also cleaning up other aspects of the mentor-protégé program. For example, they are clarifying that a mentor can only support a protégé twice in succession but must remain within the 12-year total limit for mentor-protégé relationships.