TASC Exminer

02 Jan 2015 11:18 AM | Kenneth McMahon (Administrator)

President's Corner
Dear TASC Members and Friends,

We are incredibly excited to announce that registration has been opened for
our first INDUSTRY DAY of 2015!!!

On February 24th, TASC will host the United States Coast Guard Command
Control Communications Engineering Center (C3CEN) at the Airport Doubletree Hotel in Norfolk. As TASC has done in the past with SPAWAR
and NSWC, C3CEN contracting representatives will keynote our lunch
address, and then will provide after lunch sessions on contracting and
emerging requirements, including signup sessions with contracting
representatives to close out the event. Registration/Networking runs from
11:30-12:00, lunch and keynote from 12:00-1:00, and then Industry Day
continues (with presentations and signup meetings with C3CEN) from 1:15-3:30.

Registration is available online at: http://tasctgic.org/events/registration.php.
This event is also being advertised by C3CEN through www.fbo.gov , so we
fully expect that we will reach our limit of 100 attendees (so register early!).
Also, please contact Mike Klett (Vice President) michael.klett@kcginc.
net, 757-721-5040 or Brad Reaves (President) brad.reaves@reavescoley.com if you are interested in sponsorship opportunities for this event (limited sponsorships available).

TASC Members pay the reduced price of $30.00 for the luncheon, so please
join TASC or renew your membership today. In 2015, TASC is working to
connect you with the Agencies and Commands that have the Contracts you

Brad Reaves

Legislative Update
SBA Proposes to Liberalize Subcontracting and Joint Venture Rules on Set-Aside Contracts

At the very end of 2014, the Small Business Administration issued proposed
amendments to its existing regulations governing (a) how much of a set-aside contract that a small business may subcontract to other companies and (b) when small businesses may form joint ventures to pursue set-aside work. The new rules are intended to implement changes enacted in the 2013 National Defense Authorization Act.

Subcontracting Limits Liberalized. The SBA’s limitations on subcontracting
are intended to protect the integrity of small business set-aside contracts, 8(a) contracts, SDVO SBC contracts, HUBZone contracts and WSOB and
EDWSOB contracts by requiring that the eligible prime contractor itself
perform a substantial portion of the work awarded under the contract.

The biggest change in the proposed rules is to exclude, in calculating the
percentage of work subcontracted by the prime, that portion subcontracted to a “similarly situated entity” (i.e., depending on the type of contract, another small business, another 8(a) concern, another SDVO SBC, another HUBZone concern, or another WOSB or EDWOSB).

The upshot of the proposed new rules would be to reduce the percentage of
the work that must be performed by the small-business prime contractor’s
own employees as long as one (or more) of the subcontractors is a similarly
situated entity.

As an aside, the limiting percentages for subcontract work remain the same
but the method of calculating has been somewhat modified. Excluding amounts subcontracted to “similarly situated entities”, the percentage limitation on subcontracting for both services and supplies is 50% of “the amount paid by the government” to the prime contractor. For construction contracts, the SBA proposes to maintain the current percentages:  i.e., no more than 85% of the amount paid by the government to the prime contractor may be subcontracted to firms that are not “similarly situated” in
the case of general construction, while the limitation is 75% in the case of any construction contract for a “special trade” contractors.

Joint Ventures on Smaller Procurements. Another important change made by the proposed amended rules would be to permit a joint venture for a small-business (or 8(a)), SDVO SBC, HUBZone, WOSB or EDWOSB) set-aside
contract as long as each member of the joint venture is small under the size
standard corresponding to the NAICS code assigned to the contract. Under
the current rules, in addition to the exclusion from affiliation given to an 8(a)
protégé firm that joint ventures with its mentor, a joint venture is permitted
only if the procurement is bundled or considered large (i.e., a procurement
greater than one-half of a NAICS code with a revenue-based standard, or, if
the NAICS code assigned to the contract is an employee-based size standard, a procurement greater than $10,000,000).

The SBA justifies proposing to remove this procurement size threshold for
permitting joint ventures by asserting that it will help in achieving government-wide small-business contracting goals. Moreover, the change
better aligns the joint venture rules with the liberalized limitations on
subcontracting discussed above.

This Legislative Update has been provided by Charles McPhillips of the
Government Contracts and Construction Practice Group, Kaufman & Canoles, P.C., who can be reached at (757) 6243178 or cvmcphillips@kaufcan.com for more information.

TIdewater Association of Service Contractors is a 501(c)6 non-profit organization. P.O. Box 174, Norfolk, VA 23501

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