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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.
Sole Source for Women Part of Defense Bill Negotiation
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.
After returning from this November’s election, Congress will focus on passing a few necessary pieces of legislation. At the top of that list is the annual National Defense Authorization Act, or NDAA as it is commonly known, for FY15. The bill authorizes spending on military programs and is one of the few “must pass” bills required every year. The House already passed their version of the bill in May, the same time as the Senate version passed out of the Armed Services Committee, the first hurdle for the bill. Consideration by the full Senate will be later this year.
The most important piece for women business owners is the sole source provision for the WOSB Procurement Program. It was included in the House-passed legislation but not in the Senate version. This makes sole source authority part of the ongoing informal negotiations between the House and Senate staff. Sole source authority is critical to removing a barrier for women entrepreneurs seeking access to the federal market. It would also bring parity to the small business contracting programs, as the WOSB program is the only one without this contracting tool.
It is unlikely that the Senate will have time to debate the legislation on the Senate floor, potentially leaving sole source authority and other unfinished details to the House and Senate negotiations. Hearing from constituents on this matter is important – if you have not done so, please consider sending a letter of support to your Senators. You can find all the information in WIPP’s Action Alert.
Labor Department Issues New Regulations for Contractors
The Department of Labor (DOL) issued one final regulation and is soliciting comments on two proposed regulations to implement the President’s Executive Orders affecting federal contractors. The final regulation includes details the hourly minimum wage requirement beginning in 2015. Both proposed regulations address pay equality and transparency issues. If you believe your business will be negatively impacted by these regulations, please reach out WIPP.
Final Regulation Issued on Contractor Minimum Wage
On February 12, 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Contractors,” to raise the minimum wage to $10.10 for all workers on Federal construction and service contracts. Key provisions of the final regulation include:
•Definitions of key terms used in the Executive Order, including contracts, contract-like instruments, and concessions contracts; and
•Guidance for contractors on their obligations under the Executive Order.
The Executive Order applies to new contracts and replacements for expiring contracts with the Federal Government that result from solicitations issued on or after January 1, 2015 or to contracts that are awarded outside the solicitation process on or after January 1, 2015. For more information, visit DOL’s Minimum Wage web page.
Proposed Regulation on Pay Transparency for Government Contractors
On September 17, 2014, DOL released a proposed regulation that would prohibit federal contractors from maintaining pay secrecy policies. The draft would require most contractors and subcontractors to change the nondiscrimination provisions in their contracts to state that they will not discharge or discriminate against their employees and job applicants for disclosing or inquiring about their pay. Contractors would also be required to disseminate this new provision to employees and job applicants. For more information, visit the DOL Fact Sheet or the Proposed Regulation. Comments are due on December 16, 2014.
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.