The Defense Department has adopted a final rule expanding its mentor-protégé program. The 2005 Defense Authorization Act permits service-disabled veteran-owned small businesses and HUBZone firms to participate in the program as protégés. The act also extended the program for five more years.

Federal contractors in Virginia may get relief from sales taxes on some of their contracts.

The state’s new governor, Democrat Tim Kaine, will ask the legislature to stop taxing goods that are sold to the government on contracts primarily for services, The Washington Post reported.

Under terms of the governor’s proposed budget, state tax collectors would examine each task order on a contract to determine whether the “true object” is to provide services rather than goods. If so, goods sold as part of the contract would not be subject to sales tax.

GSA wants to hear from you. The agency’s chief acquisition officer, Emily Murphy, said GSA has implemented more than 200 contract clauses without receiving any public comment, Federal Computer Week reported.

Murphy said GSA will publish new comment procedures next month and will ask for comments on some measures that have already been implemented.

The number of bid protests filed with the Government Accountability Office fell in fiscal 2005 for the first time in four years. GAO said it handled 1,356 cases, 9% fewer than the year before.

Twenty-three percent of the protests were sustained, the highest rate in at least nine years.

In his annual report to Congress, the GAO head, Comptroller General David Walker, said all of the agency’s recommendations on bid protests were accepted by the agencies involved.

SBA is granting a waiver of the nonmanufacturer rule for Office Supplies, Paper and Toner. The agency says no small business manufacturers are supplying these products to the government. The waiver is effective Jan. 27.

SBA is considering granting a waiver of the nonmanufacturer rule for Water Treatment Chemicals, NAICS codes 325188, and 325199. Comments are due Feb. 3.