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Federal Market Intelligence for Small Business |
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Top 20 Small Business Federal Contracting Stories of 2020 - Pt IIThere were a number of major developments for small federal vendors in 2020. Here is Part II of Set-Aside Alert’s Top 20 Small Business Federal Contracting Stories of 2020. #11 Exec. order on diversity training On Sept. 22, President Trump issued controversial Executive Order 13950 prohibiting “race and sex stereotyping” and “race and sex scapegoating.” The order followed a memo from the Office of Management and Budget ordering cancellation of federal trainings provided by contractors, even to their own employees, that include so-called “divisive concepts” regarding race and sex. The EO and related documents set harsh penalties for contractors who failed to comply, starting in November. NAACP and other civil rights group have sued to stop the order, and it is expected to be canceled by President-elect Joe Biden once he takes office on Jan. 20. Last week, the Labor Dept. suspended enforcement of the EO (see page 1). #12 Tribes, ANCs vie for COVID relief In April, Congress approved $8 billion in COVID-19 relief for tribes in the CARES Act, but the money soon became embroiled in a dispute over how it should be distributed. Non-profit tribal governments had advocated for the funds, but Treasury Secretary Steve Mnuchin planned to allow for-profit Alaska Native Corporations (ANCs) to get a share of the funds. The ANCs are very involved in federal contracting, including the 8(a) program. The issue went to several courts, and last week, the US Supreme Court agreed to hear the tribal governments’ case. #13 GSA Schedules Consolidation The General Services Administration went forward with Phases Two and Three of its Multiple-Award Schedules consolidation plan in 2020. The plan was announced a year before to consolidate 24 schedules into a single schedule for all products, services and solutions. In Phase Two, current contract holders adopted a mass modification with streamlined terms and conditions. It was signed by 99% of all schedule holders by July 31. In August 2020, Phase Three began, which involves consolidation for vendors with multiple schedule contracts. The multiple contracts will be consolidated to a single contract for each vendor. #14 STARS II changes, STARS III RFP In July, the GSA released the solicitation for 8(a) STARS III, a 10-year IT services and solutions contract with a ceiling of $50 billion. Meanwhile, the 8(a) STARS II contract hit its ceiling in April, limiting future prospects. The GSA raised its ceiling to $22 billion, from $15 billion, but also cut short the period of performance by two years. Critics said the changes were disruptive. #15 Congress passes NDAA 2021 On Dec. 11, 2020, Congress passed the National Defense Authorization Act for Fiscal 2021, but then passed it again on Jan. 1, 2021, overriding a veto by President Trump. Trump had objected to the renaming of military bases that had been named for Confederate military officials, among other issues. The NDAA’s Sect. 862 orders that certification of veteran-owned and service-disabled veteran-owned small firms (VOSBs and SDVOSBs) be shifted to the SBA, from the VA, within two years. Section 863 would extend the period of time allowed to measure the number of employees of a firm, as a component of small business size. It would affect primarily small manufacturers. #16 New law on AbilityOne, Vets First Congress passed a new law (HR4920) that supports AbilityOne procurement priorities at the Veterans Affairs Dept. for nonprofit contractors hiring disabled people. The VA issued a class deviation on Aug. 14, 2020, that clarified that any AbilityOne project work for the VA that was added to the AbilityOne Procurement List prior to Dec. 22, 2006 is protected, including any subsequent product replacements and line extensions that are part of such contracts. The AbilityOne project work for the VA for that period of time is now exempt from the 2006 law that requires the VA to put veteran-owned small businesses at the front of the line for all VA procurements. #17 Velazquez’ presumed COVID19 Rep. Nydia Velazquez, D-NY, chair of the House Small Business Committee, on March 30 revealed she had COVID-19 symptoms and presumably was ill with COVID-19. She reported muscle aches, fevers, nasal congestion, stomach issues and inability to smell. On April 2, she gave an update saying she had “turned the corner” on the illness. She later acknowledged it had been an ordeal. “I know firsthand how overwhelming and scary the diagnosis can be. My heart is with all Americans and their families struggling with this terrible illness,” Velazquez said in a November 2020 press release. #18 Deep cuts proposed for SBA In February, President Trump proposed $736 million in net budget authority for the Small Business Administration’s fiscal 2021 budget year. Entrepreneurial development programs were proposed to drop by 36%, down to $168 million. The Small Business Development Center budget was to fall to $88 million, a 35% reduction from the enacted budget the year before. Cuts also were proposed for Women’s Business Centers, STEP, Microloan Technical Assistance, SCORE, PRIME and Regional Innovation Centers, among others. #19 50,000 more firms eligible In October, the SBA published two new proposed rules that would expand small business size standards in 113 industries in eight sectors. The rules would make about 50,000 more firms eligible for federal small business set-asides. #20 SBA field offices understaffed In January 2020, the House Small Business Committee held a hearing examining the impact of reductions in SBA field office staffing. Committee Chair Velazquez asked why the SBA supported only 687 field staff in 2019, which was a 14% reduction from the historic average of 800 personnel. The SBA had proposed flat budgets for field staff for the last two years.
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