BLOG: Impact of California Consumer Privacy Act on Government Contractors and Commercial Businesses
The California Consumer Privacy Act (“CCPA”) will go into effect on January 1, 2020. Similar to the European Union’s General Data Protection Regulation (“GDPR”), CCPA creates significant compliance challenges for government contractors and commercial businesses doing business in California, with several states following suit. Under CCPA, fines from the Attorney General for businesses that do not comply could be as high as $7,500 per violation, with CCPA also granting consumers the right to bring private action, exposing companies to actual and . . . Read More
BLOG: Long-Awaited Proposed Rule for Lower-Tier Subcontracting Plan Credit Finally Arrives to the FAR
The FAR Council is beginning to catch up with the SBA’s allowance that prime contractors with small business subcontracting plans may take credit for lower-tier small business subcontracting—albeit, three years behind schedule. PilieroMazza attorneys will monitor and report on these developments, which could affect prime contractors and their subcontracting plan reporting, as well as their ability to win and maintain government contracts. In 2016, SBA issued its final rule implementing directives found in the 2014 National Defense Authorization Act (NDAA) to . . . Read More
BLOG: SBA Issues Proposed Rule Changing Receipts Calculation to 5 Years, Implementing Small Business Runway Extension Act
On June 24, 2019, the Small Business Administration (SBA) published its long-awaited proposed rule changing the period of measurement for a receipts-based size calculation from three years to five years. This change was prompted by the Small Business Runway Extension Act (the Runway Act), which became law on December 17, 2018. SBA was slow to implement this change because SBA believes that the Runway Act amended a section of the Small Business Act that does not apply to SBA. “Nevertheless,” SBA says, . . . Read More
BLOG: Learn from Others’ Mistakes and Avoid an FCA Claim
The recent settlement reached by International Business Machines Corporation (IBM), Cúram Software Ltd. (Cúram), and the Department of Justice provides a useful lesson for government contractors—especially contractors in the healthcare industry. The $14.8 million settlement follows allegations that Cúram-IBM violated the False Claims Act (FCA) by making material misrepresentations in a proposal to support the development of Maryland’s Health Insurance Exchange website and IT platform. Specifically, Cúram made a presentation in which it stated that its software could make eligibility . . . Read More
BLOG: Use It Or Lose It – U.S. Supreme Court Holds Employers Who Wait Too Long to Raise EEOC Claim Objection to Title VII Discrimination Lawsuit May Forfeit Objection
Recently, in Fort Bend County, Texas v. Davis, the U.S. Supreme Court was faced with a jurisdictional question: If a plaintiff fails to exhaust her remedies by first filing an Equal Employment Opportunity Commission (“EEOC”) claim, is she jurisdictionally barred from suing her employer for discrimination under Title VII of the Civil Rights Act of 1964 (“Title VII”)? In typical lawyerly fashion, the Supreme Court drew a distinction between “mandatory” and “jurisdictional” and answered with an “it depends.” This blog addresses the . . . Read More
BLOG: What Will Happen to the DoD’s Mentor-Protégé Program?
As many of our clients know, there are several mentor-protégé programs run either by the SBA or specific agencies that are intended to help small businesses develop and enhance their ability to serve as a prime contractor or subcontractor in federal contracts. For example, the SBA has the 8(a) mentor-protégé program and the all-small mentor-protégé program, and it also approves agency mentor-protégé programs, such as the Department of Homeland Security’s program, which is designed to help small businesses obtain and . . . Read More
BLOG: Corporate Transactions and Affiliation Pitfalls
As a small business grows and expands, it may have opportunities to bring on new investors, provide equity incentives to obtain, incentivize and retain key employees and directors, and enter into acquisitions and other transactions with other entities. These investments and transactions can support the business’s stability and future growth but may also raise unintended affiliation issues. Because the Small Business Administration (SBA) includes the business’s affiliates when determining its size, pursuing these transactions may affiliate the business with other . . . Read More
BLOG: Halting Employee’s Right to Report Cybersecurity Noncompliance Can Land Government Contractors in Hot Water
Last week signaled a potential rude awakening for government contractors subject to cybersecurity requirements. A California U.S. district court ruled that allegations against Aerojet Rocketdyne could progress following a former employee’s complaint that the company terminated his employment after he disclosed cybersecurity failures to the company’s board of directors and refused to sign documents indicating that the company was compliant. Among the employee’s chief allegations is a charge that the company violated the False Claims Act by falsely representing its . . . Read More
BLOG: Challenging a Negative CPARS: What Remedies Are Available?
As any experienced government contractor knows, poor performance under a federal contract can have significant consequences. Not only can it lead to contract termination and damages, but it can also affect a contractor’s ability to obtain future work, as agencies are generally required to consider past performance information posted on the Contractor Performance Assessment Reporting System (“CPARS”) when making source selection decisions. Because a CPARS rating is generally valid for 3 years (6 years for construction/architect-engineer contracts), a contractor may . . . Read More
BLOG: In Win for Whistleblowers, Supreme Court Clarifies Statute of Limitations for False Claims Act Actions Where Government Elects Not to Intervene
Recently, in Cochise Consultancy, Inc. v. United States ex rel. Hunt, the Supreme Court resolved a circuit split and clarified in a unanimous decision that the statute of limitations period for qui tam actions where the Government declines to intervene could extend to ten years, if the plaintiff can show when the Government knew or should have known of the material facts related to the alleged false claim. The Supreme Court noted that under the False Claims Act, 31 U.S.C. § . . . Read More