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Selling to the government

Relax a Little – Expiring SAM Deadline Extended

GSA just announced a 180-day extension for organizations with expiring SAM website registrations. Those with registrations expiring between April 1 and September 30, 2021, will automatically be granted an extension. The extension is an effort to alleviate some of the burden during the implementation of the American Rescue Plan Act. (GSA Interact March 29, 2021)

GSA will send an email from samadmin@sam.gov with the subject line “180-Day SAM.gov Extension Granted for [Entity Name/DUNS/CAGE]” to those affected. The extension will not affect first-time registrants. The updated records will be stored within entity management extracts in SAM.gov and available through web services after the records are extended. (ibid)

Need help with your registration? Give us a call.

$355M for Women Owned Small Businesses

Over the past 20 years, the government has aimed to award at least 5 percent of contracts to Women-Owned Small Businesses (WOSBs). In FY2020, WOSBs received $561.7 million in contracts. However, GSA has only set aside $354.9 million for WOSB contracts in FY2021. (ExecutiveGov, March 4, 2021)

According to GSA’s Office of Small and Disadvantaged Business Utilization, 10.47 percent of the total FY2020 contracting obligations for women-owned vendors were prime awards. To lend a hand to these vendors, GSA provides support through training resources and Forecast of Contracting Opportunities. These tools and other activities earned GSA a grade of A+ from the Small Business Administration in FY2019 for their work to support small businesses. (ibid)

Are you a Small or Woman-Owned Small Business looking to prime or sub on an upcoming procurement? Give us a call.

New ‘Made in America’ EO

On 25 January, President Biden issued a “Made in All of America by All of America’s Workers” executive order. (Government Executive, February 24, 2021)

Before the executive order takes effect:

  • New rules mandating the executive order must go through the formal rule-making process
  • Within 180 days, the Federal Acquisition Regulatory Council should consider replacing the “component test” (50 percent of a product’s cost must have a domestic origin)
  • The threshold for domestic content requirements for construction materials and end products will be increased, as well price preferences for domestic construction materials and end products

The order directs the FAR Council to assess exceptions from the Act for commercial information technology (IT). Recommendations will likely influence solution strategies. A Made in America office within the Office of Management and Budget (OMB) will be created, which will review waivers to purchase goods from outside the United States. Additionally, the Order mandates a list of actions to be performed within 45 days of the office director’s appointment. (ibid)

Biden’s EO also proposes that GSA create a public website for proposed waivers. Justification for all waivers will be publicly available, giving competitors the ability to weigh-in on waiver requests, likely diminishing the issuance of waivers. Contractors should consider this when determining their sourcing approach. (ibid)

Questions concerning your current as well as future government contracts and how the new order will affect them? Give us a call.

Changes A-Comin’ With the Biden Administration

Contractors can expect to see a new executive order requiring federal contractors to pay a $15 minimum wage and provide emergency paid leave. Additionally, this week President Biden signed an executive order pressing federal agencies to buy more American-made products and services. The buy-American order “will ensure that the federal government is investing taxpayer dollars in American businesses—both small and large.” (The White House Statements and Releases, January 25, 2021)

Employers of the largest federal contracting workforce are cheering the minimum wage increase. Jen Psaki, White House Press Secretary, said Biden issued the minimum wage mandate because “he felt it was something that was not just right to do, but something that was necessary to do.”  (Government Executive, January 22, 2021)

The new buy-American order enhances the Buy American statute passed in 1933 and the Buy America statute passed in 1982. It calls for the following:

  • Closing current loopholes on how domestic content is measured and increasing domestic content requirements.
  • Appoint a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy approach.
  • Increase oversight of potential waivers to domestic preference laws. (a GSA-built website will publish waivers publicly)
  • Connect new businesses to contracting opportunities by requiring active use of supplier scouting by agencies.
  • Reiteration of the President’s strong support for the Jones Act.
  • Direct a cross-agency review of all domestic preferences.
  • Support America’s Workers through Federal Purchasing. (The White House Statements and Releases January 25, 2021)

The buy-American order allows American manufacturers and workers to see how federal dollars are spent and where the money is funneled and used, providing transparency promised by the new administration. The higher minimum wage will empower the workforce and provide much needed economic relief. (Government Executive, January 22, 2021)

Questions concerning the new minimum wage or the buy-American order and their effect on future procurements? Give us a call.

Born in the USA

Last week DOD set in motion the Trusted Capital Digital Marketplace, the goal of which is to give companies an alternative to foreign investors. Often, using foreign investors prohibits contracting with the Department of Defense (DoD). The marketplace originally piloted last year with the official launch last month.

Both companies and investors apply to join the marketplace and are screened by DoD. Those accepted are listed in the digital marketplace as trusted receivers or sources of funds and may connect with each other. As of this writing, 128 companies and 30 investors have logged into the marketplace.

Tax cuts and the Jobs Act of 2017, creating new designations for special national security-related companies in the tax code, are crucial components of the marketplace. Additionally, the fiscal 2021 National Defense Authorization Act references the marketplace program. Combined, these will increase use of the program; as users report on the program efforts, it expands. The goal is to help start-ups obtain funding without looking to foreign investors who may have adversarial ties.

Are you looking to work with the Department of Defense and trying to figure out how to get funding? Give us a call.