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Contracting Updates
From the Capitol
Welcome to the policy corner where we recap Congressional and agency actions which impact federal contracting. There are all kinds of actions taken by federal agencies, Capitol Hill and sometimes the President which have a direct effect on federal contractors. This column is designed to provide an easy to read summary of recent policy changes, or proposed changes, that affect women-owned businesses and federal contracting.
WIPP “On the Hill” in Support of Sole Source Bill
Background: Adding sole source authority to the WOSB Procurement Program is a top priority for women-owned federal contractors. WIPP is working with the Senate to make that happen after the House already-passed legislation.
WIPP’s government relations team and members have been busy with meetings on Capitol Hill in recent weeks to urge support for S. 2481, the Women’s Small Business Procurement Parity Act. The legislation would allow for sole source contracts in the WOSB Procurement Program. The meetings are a visible part of WIPP’s ongoing advocacy efforts. You can read about the meetings in Executive Director Kristie Arslan’s “Walking the Talk” blog and can join the effort by reaching out to WIPP.
It will take a united effort from the women’s business community to make sole source authority happen. If you know your Senators or Representatives, we encourage you to meet with them either during WIPP’s upcoming Annual Leadership Meeting on July 22-24th or during August recess. Another option is to visit the WIPP Action Center to send letters of support to your Senators.
Minimum Wage Rule Proposed – Comments due July 28th, 2014
Background: Earlier this year, President Obama raised the hourly minimum wage for federal contractors by Executive Order to $10.10 beginning January 1, 2015. The Department of Labor recently proposed rules on implementation.
The proposed rule addresses contracts covered under the Service Contract Act (SCA), the Davis-Bacon Act (DBA) and the Fair Labor Standards Act (FLSA). Generally, employees on those contracts – and the employees of subcontractors on those contracts—must be paid a minimum of $10.10 per hour. Exempted from this requirement are: grants, contracts with Indian Tribes, non-DBA construction contracts, non-SCA services contracts, and any contracts exempt from FLSA requirements. The $10.10 minimum wage also applies to companies leasing space from the government and food/concessions sold on military bases.
WIPP members impacted by this proposed change are encouraged to share their views with WIPP by July 25th, 2014 for incorporation into rule comments. The final rule is expected by Oct. 1, 2014. Solicitations for contracts to be awarded after Jan. 1, 2015 are already implementing this change.
SBA Adjusts Size Standards for Inflation – Comments due August 11th, 2014
Background: The Small Business Administration (SBA) updates the size standards that define “small business” for government purposes. The SBA recently increased those standards for nearly all industries to account for inflation, making small business programs available to larger companies. The increase is in effect beginning July 14, 2014.
The increase is the first inflation adjustment since 2008 and was not part of SBA’s ongoing review of size standards industry by industry. While each size change is included in the rule, it is approximately equal to a 1% increase for all revenue based size standards.
For purposes of contracting, all certifications made prior to July 14, 2014 will use the size standards now in effect – without the inflation adjustments. Some solicitations, however, may be adjusted to reflect the change. If you were just above the relevant size standard, check the solicitation to see if the change impacts your ability to respond.
Notably, this increase does not increase the size standards for the purposes of 7(a) or 504 loans or certification as economically disadvantaged (EDWOSB) under the WOSB Procurement Program.
The rule goes into effect July 14, however, comments will be accepted until August 11th.