Legislation extends HUBZone redesignation status

Two bills are working there way through the legislative process to make a significant change to the HUBZone program.

Sen. David Vitter (R-La), chair of the Senate Small Business Committee, has introduced legislation that extends HUBZone redesignation status from three years to seven years. His legislation also enables state governors to petition for HUBZone status for specific areas.

On the House side, Rep. John Delaney (D-Md.) introduced “the Delaney HUBZone amendment” to H.R. 5485, the Financial Services and General Government Appropriations Act for Fiscal Year 2017, one of the key pieces of legislation to be enacted each year. It only covers redesignation extensions.

When geographic areas are removed from HUBZone designation, companies that are currently HUBZone-certified in that area remain eligible for the program for three years. This short period discourages companies from participating in the program since it often takes a year or more to win the first contract.

In its June newsletter PilieroMazza noted that “hard data and anecdotal evidence indicate that, to reach its full potential, the HUBZone Program needs to be simpler and more business friendly.”

More information: Senate bill S.2838: https://goo.gl/e2DBHP
House bill H.R. 5485: https://goo.gl/55O1Gp
Delaney amendment: http://goo.gl/mvUe3E

Penalty upped

Continuing the implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Veterans Affairs Department has published an interim final rule increasing maximum monetary penalties from $10,000 to 21,563 for false loan guaranty certifications, and from $5,500 to $10,781 for fraudulent claims or fraudulent statements in any VA program.

The interim final rule was issued and effective June 22. The comments period will close on August 22.

SBA made similar changes in a May 19 interim final rule, with comments du to July 18. SBA increased maximum penalties from $5,000 to $10,781 for anyone who makes a false claim or misrepresentation to SBA to obtain benefits from an SBA financial assistance or contracting program.

More information: VA rule: https://goo.gl/NN5OKQ
SBA rule: https://goo.gl/uVLfjx

Small firms win big piece of Navy contract

Navy awarded 17 of its 21 C2 contracts to small businesses.The IDIQ, firm-fixed-price contracts have an award ceiling of $750 million over the base and multiple option years.

More information: For the list of winners, see http://goo.gl/6Fpw6P

Leney: VA to start “immediately” applying Supreme Court ruling

GSA gets rid of Price Reduction Clause

Column: Thinking outside the (FAR) box

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