House bill has extras for defense contractors
The House-approved $3 trillion HEROES Act to expand coronavirus relief contains special benefits for defense contractors, according to a report by ProPublica. The legislation would revise Sect. 3610 of the CARES Act, which reimburses firms for wages of contract employees kept “in a ready state.”
The HEROES Act says that such firms can be reimbursed by DOD and intelligence agencies for a range of other costs, including fees and “general and administrative expenses,” including rent, advertising and sales.
“It’s one thing for the government to say, ‘We’ll keep the workers going,’” Charles Tiefer, U. of Baltimore School of Law professor, told ProPublica. “But this is money for the firm.”
Rep. Gerry Connolly, D-VA, defended the provision, saying it will help the companies survive.
More information:
ProPublica story: https://bit.ly/3dskL1X
Rule to require notices of bundling
The FAR Councils issued a proposed rule to require contracting agencies to issue public notices within 7 days of deciding to bundle or consolidate a substantial number of requirements.
The rule is intended to implement a section of the national defense authorization bill for fiscal 2016.
Bundling has been an ongoing concern for small business federal contractors. If multiple requirements are bundled, there are fewer contracts, and likely fewer opportunities for small businesses.
More information:
Proposed Rule:https://bit.ly/2XSQTVP
SBA removes some former SDB rules
The SBA published a direct final rule effective Aug. 6 stating that it is removing 16 “redundant or obsolete” regulations regarding Small Disadvantaged Businesses (SDBs).
These include rules for a former program for SBA certification of SDBs. Currently, SDBs are allowed to self- certify. There were 125,616 self-certified SDBs as of August 2019.
The 5% government goal and the agency-specific goals for prime and subcontracts from SDBs (and for 8(a) participants) continue to be in force.
Read more:
Final Rule:https://bit.ly/3dqfGag