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Government Contractor’s Blog

The SBA is serving our entrepreneurial veterans

Last Friday, the Small Business Association (SBA) announced that it would invest $3.5 million in grant funding to create veterans business outreach centers (VBOCs) in seven new locations, including Alaska, California, Colorado, Iowa, Nebraska, Nevada, and South Carolina. The purpose of this investment is to expand entrepreneurial training and counseling services for veterans and military spouses who own and operate small businesses. (ExecutiveGov April 24, 2023)

The VBOCs will assist veteran-owned small business in various aspects such as business planning, loan application, marketing and outreach efforts. Additionally, grants will be set up to support Boots to Business classes to help active duty service members transition and determine whether entrepreneurship is a practical transition strategy.(ibid)

Isabella Casillas Guzman, administrator of the SBA, stated that “with this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.” (ibid)

Interested in grant funding for your veteran owned small business? Give us a call.

GSA Panel Focuses on AI, Cloud, and Cybersecurity in Federal Procurement

The General Services Administration’s (GSA) Acquisition Policy Federal Advisory Committee (GAP FAC) held its first 2024 meeting on December 5th, introducing 14 new members and focusing on artificial intelligence, cloud computing, and cybersecurity. (MeriTalk December 5, 2024)

GAP FAC advises the GSA administrator, offering guidance on acquisition tools and addressing top challenges in Federal procurement. (ibid)

During the Dec. 5 public meeting, the advisory board outlined plans to integrate advanced technologies into procurement. The committee aims to leverage AI and data analytics to boost efficiency, adopt climate-conscious acquisition strategies, and resolve systemic issues in the acquisition ecosystem. (ibid)

“GSA is ready to embrace emerging technologies and deliver solutions that meet the government’s evolving needs,” said GSA Administrator Robin Carnahan. “This committee’s invaluable expertise will help federal agencies drive innovation, improve efficiency, and deliver better outcomes for the American people.” (ibid)

The meeting also introduced the new members, including:

  • Dorothea Abraham, Mason School of Business, William and Mary
  • Dean Alderucci, Carnegie Mellon University
  • Tiffany Angulo, California Department of Technology
  • Gordon Bitko, Information Technology Industry Council
  • Time Cooke, ASI Government, Inc.
  • Matthew Cornelius, Workday
  • Ravit Dotan, TechBetter
  • Omid Ghaffari-Tabrizi, Google
  • Margaret Graves, IBM
  • Jared Johnson, California Department of Technology
  • James Keagle, Eisenhower School for National Security and Resources Strategy
  • Cari Miller, Center for Inclusive Change
  • Lindsey Moore, DevelopMetrics
  • Adrianna Tan, Future Ethics

GSA opened nominations for new members in July, seeking expertise in AI, cloud computing, machine learning, and cybersecurity. (ibid)

“This committee plays a vital role in shaping the future of federal procurement,” said Jeffrey Koses, GSA Senior Procurement Executive. “The work we’re undertaking will not only improve how the federal government acquires goods and services, but will also ensure that procurement strategies remain adaptive and innovative in a rapidly changing technological landscape.” (ibid)

Questions about how your business might take advantage of AI, Cloud or Cybersecurity in upcoming procurements? Give us a call.

The Rule of Two to Transform Small Businesses

The SBA proposed a rule on October 25, 2024, aiming to transform small business contracting by requiring agencies to apply the “Rule of Two” to task and delivery orders under multiple-award contracts (MACs). The Rule of Two ensures contracts go to small businesses when at least two qualified small firms can meet price, quality, and delivery standards. This rule will apply to orders exceeding the micro-purchase threshold, with exemptions for orders placed under the General Services Administration’s Federal Supply Schedule or in cases where there are supply chain risks or national security concerns. (HSToday.US November 7, 2024)

Driven by concerns over declining small business participation, the SBA estimates this rule could increase small business contracts by $6.1 billion annually. It supports the Biden administration’s goal of 15% federal contract spending with small disadvantaged businesses (SDBs) by 2025. In fiscal 2023, 28.4% of federal contract dollars went to small businesses, yet new entrants to federal contracting have dropped nearly 60% since 2010. (ibid)

The SBA proposal requires agencies to document their decision when they choose not to set aside a contract under the Rule of Two. Agencies must conduct market research, justify their rationale, and coordinate with small business specialists. For orders under MACs with fewer than two small business contract holders, agencies must explain their decision, with exceptions for contracts under the Federal Supply Schedule and other specific exemptions. (ibid)

This proposal builds on a January 2024 memorandum from the Office of Federal Procurement Policy, which directed agencies to document such decisions. The SBA aims to address inconsistencies in applying the Rule of Two, which arose from differing interpretations by the Court of Federal Claims and the GAO regarding its use in MACs.aiming to improve compliance and Public comments are open until December 24, 2024, with the SBA encouraging input from stakeholders. If adopted, the rule promises to level the playing field, boost small business participation, and diversify the federal supply chain. (ibid)

Questions concerning the Rule of Two? Give us a call.

Don’t lose your Federal Government business – add a backup

The days are getting shorter, and surprises lurk in the night. Don’t let missing your entity registration renewal stop you from doing business with the federal government—that’s scarier than anything else!(Buy.GSA.GOV October 10, 2024)

Here’s some good news: your current Entity Administrator can add one or more backup Entity Administrators today. They simply log in, choose trustworthy team members, and invite them to join as Entity Administrators. No tricks, no complicated approval process. The new admins will have the same permissions, so make sure they’re a good fit! If they need guidance, we’ve got easy-to-follow instructions ready.(ibid)

Don’t wait until the last minute—ask your current Entity Administrator to invite backups now. With extra admins in place, you’ll always have someone ready to renew your registration on time and keep business with the federal government running smoothly. (ibid)

Need some help adding additional Entity Administrators? Give us a call.

OMB Issues First Governmentwide AI Acquisition Policy

The Office of Management and Budget (OMB) released new guidance today to improve how Federal agencies acquire artificial intelligence (AI) technologies. The guidance, outlined in the memo Advancing the Responsible Acquisition of AI in Government, directs agencies to boost cross-functional collaboration, manage AI risks and performance, and foster a competitive AI market. (MeriTalk October 3, 2024)

OMB’s Deputy Director for Management, Jason Miller, emphasized the need for responsible AI procurement, stating that Federal agencies will either have AI systems built by contractors or purchase them directly. “This new memo equips agencies with the tools to capture AI’s potential while managing its risks,” Miller said. (ibid)

A large portion of the memo focuses on managing AI risks, with OMB mandating early involvement from agency privacy officials in AI acquisition processes to identify privacy risks and ensure legal compliance. Agencies are also instructed to negotiate contracts that require vendors to provide detailed information for evaluating AI systems, assessing risks, and protecting government data. (ibid)

The guidance addresses generative AI specifically, calling for testing, red-teaming, and evaluation to ensure the safety and appropriateness of AI tools. It also promotes practices to avoid vendor lock-in, prioritize transparency, and ensure interoperability in AI systems. (ibid)

This guidance fulfills a key part of the Biden-Harris administration’s October 2023 AI executive order and reflects input gathered from public comments and industry roundtables. OMB’s Miller highlighted the Federal government’s significant purchasing power, noting that in 2023, it spent over $100 billion on IT products and services. He stressed that responsible procurement decisions can accelerate AI advancements while mitigating risks for government use. (ibid)

Questions concerning the new OMB issued AI guidance? Give us a call.

2025 minimum wage is set, mostly

The Labor Department recently set new minimum wages for federal contractors, ranging from $9.30 per hour for tipped workers to $17.75 per hour, depending on job type. A pair of notices from the Federal Register lays out the specifics. Starting next January, federal contractors with agreements signed, renewed, or extended after January 2022 must receive a minimum wage of $17.75 per hour, regardless of whether they receive tips. This move stems from a 2021 executive order by President Biden, which expanded his $15 minimum wage mandate to federal contractors and required annual updates based on the Bureau of Labor Statistics’ Consumer Price Index (CPI-W). (Government Executive October 3, 2024)

For contracts signed before January 2022, the minimum wage for non-tipped workers will rise from $12.90 to $13.30 per hour, and tipped workers will see an increase in their “cash wage” from $9.05 to $9.30 per hour. Although this dual system is complex, Labor officials expect all contracts to soon fall under the new executive order, streamlining wage regulations. (ibid)

Despite the complexity of this dual wage system, Labor Department officials expect that soon all federal contracts will fall under the new executive order, eliminating the need for the older wage structure. (ibid)

Have questions about which minimum wage structure your contracts are covered under? Give us a call.