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Tag: federal contracting

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!

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.

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.

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.

Navigating FY 2024: Top Federal Opportunities for Government Contractors

As FY 2023 is behind us, the government contracting market breathes a sigh of relief, marking the end of a busy period. As our attention turns to FY 2024, many companies do a “reset” refocusing on growth and strategically pursuing major procurements that lay the groundwork for future success.

At this crucial juncture, GovWin’s analyst team releases comprehensive reports and webinars spotlighting the top opportunities in the federal government for the upcoming fiscal year. This year’s insights cover the top 20 unrestricted opportunities, the top 10 set-aside opportunities, the top 10 professional services opportunities, and the top 10 architecture, engineering, and construction (AEC) opportunities. (GOVCONWIRE November 20, 2023)

What sets this year apart in terms of federal opportunities?

Despite overall growth in contracting, industry participation is consolidating, a trend noted last year influencing the top opportunities for FY 2023. The decline in the number of firms receiving federal awards, despite increased federal spending, is driven by factors such as agencies adopting IDIQ contracts and rising barriers to entry due to stringent compliance requirements. (ibid)

Another notable factor shaping this year’s top opportunities is the rapid and consistent growth in small business contracting, outpacing larger businesses since 2011. Small business contracting exhibits not only a 49% growth rate but also greater stability compared to ‘other than small’ businesses. (ibid)

A high-level overview of the top opportunities for FY 2024

  1. Unrestricted Federal Opportunities: These opportunities, available to all government contractors, offer access to complex but lucrative procurements. Top opportunities, like CCN NEXT GEN, SEWP VI, and ALLIANT 3, promise task order opportunities worth billions of dollars.
  2. Federal Set-Aside Opportunities: Reserved for small businesses, set-aside opportunities provide participation avenues for various socioeconomic categories.
  3. Architecture, Engineering, and Construction Opportunities: AEC opportunities span diverse projects, from advising on capital requirements to major construction undertakings.
  4. Professional Services Opportunities: Covering business operations, management consulting, personnel and HR services, marketing, legal, and accounting services, professional services opportunities abound. (ibid)

Guidance for proactive government contractors

Having identified these top opportunities, proactive government contractors gearing up for success should focus on strategic teaming initiatives, and increasing business development investments, to increase relevant opportunities and enhance their pipelines. (ibid)

If your company targets federal unrestricted, AEC, professional services, or set-aside opportunities and is gearing up to pursue these in FY 2024, arm yourself with critical information:

  • Understand spending trends within your target markets.
  • Anticipate procurement patterns for the coming year among agencies utilizing these contracts.
  • Leverage detailed intelligence to fortify your pipeline. (ibid)

For a deeper dive into how these trends and opportunities may impact your business, give us a call.

The SBA should focus on small businesses, not fraudulent businesses

Last week the small business community urged lawmakers to shrink administrative burdens complicating entry into the Small. Business Administration’s (SBA’s) 8(a) program.

This is timely as the Biden Administration has set a goal to bolster the share of federal contracts awarded to small disadvantaged businesses from 5% to 15% by 2025. A former SBA official suggests the SBA focus on expanding entry to the program for disadvantaged businesses and not spend time penalizing those who fraudulently attempt to gain entry. This will go a long way to help achieve the goals as set by the administration.

Jackie Robinson-Burnette, CEO of Senior Executive Strategic Solutions and a former SBA senior program executive said SBA should, “shift their focus to include every firm that is eligible'” for the 8(a) program. She mentioned that she served at the SBA, the SBA received over 2,000 applications a year and accepted only 300 participants. The Government Accountability Office believes steps were taken to address fraudulent applications to the 8(a) program. Unfortunately, there remains no official verification procedure. The Government Accountability Office did not take steps to improve oversight of the program, according to report filings.

Robinson-Burnette said, “right now, the focus is making sure they mitigate the risk of firms getting into the program that shouldn’t be in the program – focusing on the fraud – when really that’s 1% or 2% of firms that apply. The other 90-plus percent of firms are struggling to get in … because the SBA is focused on the wrong thing.”

In addition to misplaced focus, Rep. Kweisi Mfune (D-MD) said business owners have reported concerns with the length of the program and that it takes most firms multiple years to receive their first awards. Mfune said, “this hinders the development of program participants and raises the question of whether enterprises are ready for graduation when they exit the program.”

Darryl Hairston, the SBA’s former associate administrator of business development, said he submitted a proposal to redesign the 8(a) program a few years ago. Hairston took into account the complexities small businesses encounter in navigating the federal marketplace during their initial years in operation.

Hairston said, “one of the things that we talked about was that most firms coming into the program, who are truly eligible for the program, had little experience in the federal marketplace. The timeframe is highly dependent upon how successful you are coming into the program and how well you take off with the benefits that are available to you.”

Robinson-Burnette feels adding priority access for SDB mentors will increase successful outcomes. This will occur by shifting some of the SBA’s dependence from their assigned business opportunity and creating additional inroads to work opportunities. Mfume is considering meeting with the SBA administrator to figure out “what can be done in the time we have.”

Are you a small disadvantaged business or a business looking to work with one on an upcoming contract? Give us a call.

There’s more to a Small Business Affiliation than meets the eye

Small business contracting has been gaining momentum through the Small Business Administration’s (SBA) “all small” mentor-protege program. This program allows a large business to form a joint venture with a small business to compete for set-aside contracts. The SBA has several ways to determine if a company is actually small. And just because you meet the size standard for a procurement does not necessarily mean you are eligible for an award. (Federal News Network January 14, 2022)

Every procurement has a size standard assigned. Size standards set the largest size that a business (including its subsidiaries and affiliates) may be. Therefore, it is crucial to note whether the small business has any affiliates. Size standards are based on the number of employees or average annual receipts of a company. An affiliate’s number of employees and annual receipts are included in business size determination. (ibid)

Many award protests arise when offerors allege the winning company is ineligible, based on size. A protestor will argue that a company is not a small business due to its affiliation with a large company. The affiliation thereby exceeds the size standard. Should the SBA find that a bidding company exceeds the size standard due to an affiliation, the result can be the loss of a contract. (ibid)

Affiliation is when one company controls another company, or a third party controls both businesses. It doesn’t matter if the control is exercised. It only matters that it exists. (ibid)

Common ownership can give rise to affiliation. Common ownership happens when an owner of a firm holds an ownership interest in one or more other firms. This gets complicated if a company is owned by multiple shareholders. (ibid)

Affiliation can occur due to the relationship between the firms themselves, such as an affiliation based on the ostensible subcontractor rule. This rule provides that a prime contractor and subcontractor are affiliated if the subcontractor is performing the primary requirements of a contract and the prime contractor is reliant upon the subcontractor. If the SBA dins an affiliation under the ostensible contractor rule, it is limited to the procurement in question. Both companies may be eligible for award of other small business contracts. (ibid)

The rules around affiliation are subtle and often complicated. Many times a company finds out about an affiliation only after a protest is filed. An unfavorable size determination will result in the loss of a contract. This can affect a vendor’s ability to compete for future set-aside contracts. If this happens, a firm must be recertified as small. It is the same if a protested frim is a protege in a mentor-protege joint venture. The protege must be recertified. (ibid)

Affiliations are preventable. All agreements should include representations concerning the prime contractor’s small business status. All parties should be knowledgeable of the circumstances that may result in affiliation. (ibid)

Do you have affiliation questions? Give us a call.