We have received questions about what this means for different small business concerns, so we wanted to follow-up on the previous blog post to discuss the practical implications for small businesses interested in receiving larger sole-source contracts. Publications, Client Alerts 12.19.19. Authorities pertaining to Native Americans. Section 8(a) generally authorizes set-asides and sole-source awards to “socially and economically disadvantaged small business concerns,” which include firms at least 51% owned and unconditionally controlled by ANCs, Indian tribes, Native Hawaiian Organizations (NHOs) or Community Development Corporations (CDCs). No Sole Source Dollar Threshold – 13 C.F.R. Spanish Kit. Although the SBA is authorized to consider these affiliations when not doing so results, or is likely to result, in an ANC-owned firm obtaining a “substantial unfair competitive advantage within an industry category,” the SBA and agencies exercising delegated authority on its behalf reportedly seldom exercise this authority. Other 8 (a) companies can only receive sole source awards for manufacturing contracts up to $6.5 million and for service contracts up to $4 million. If you would like to know more about the 2020 NDAA and its impact on acquisition policy and management, please contact a member of PilieroMazza’s Government Contracts Group. Ranked nationally in Government Contracts Law by Chambers in 2019-2020, named one of the “Top Attorneys Under 40” nationwide in Government Contracts Law by Law360 in 2016-2017, and listed in Washington, D.C. Super Lawyers as a “Rising Star” in Government Contracts Law in 2014-2020, Aron’s vast experience includes representation of government contractors in a variety of industries and in all aspects of the government-contracting process, including negotiation, award, performance and termination. Annapolis, MD 21401. Other 8(a) companies can only receive sole source awards for manufacturing contracts up to $6.5 million and for service contracts up to $4 million. (a) A Participant (other than one owned by an Indian Tribe, ANC or NHO) may not receive sole source 8(a) contract awards where it has received a combined total of competitive and sole source 8(a) contracts in excess of the dollar amount set forth in this section during its participation in the 8(a) BD program. h޼Xmo7�+��a�N�����iPm� ��-�����b���C�α�u�8Ȣ$����H���J+c�r1���eB�ܓ"c�h")���IL8������׭���� U��62OP��!�(Qy�! – 13 C.F.R. He has extensive experience with GAO bid protests, agency-level protests, Court of Federal Claims (COFC) bid protests, and SBA OHA size and NAICS appeals, as well as experience with agency-level requests for equitable adjustments (REA) and claims, and Boards of Contract Appeals claims. Section 872 – Reauthorization and Improvement of Department of Defense Mentor-Protégé Program To be eligible for a bonus, the prime contractor must use its best efforts to give Indian organizations and Indian-owned economic enterprises … the maximum practicable opportunity to participate in the subcontracts it awards to the fullest extent consistent with efficient performance of its contract. Notably, this threshold increase does not impact SBA’s competition requirements or the tribal and Alaska Native Corporation (ANC) exceptions of 13 C.F.R. ANCs may receive a sole source contract up to $20 million, and with proper justification, unlimited dollar amounts. 1910 Towne Centre Boulevard It is important for all 8(a) concerns to know their DoD customers’ needs, and just as important for DoD customers to know the expertise and capacity of 8(a) companies, so that both parties can be ready when a sole-source opportunity manifests. 1637 Pearl Street ANC sole source procurements provide the Government with numerous advantages in creating agile and scalable contracting solutions by allowing open discussions and direct negotiations at any phase of procurement following SBA approval. Effective immediately, for procurements valued at $100 million or less, contracting officers are not required to execute a justification and obtain approval for award of a … He has extensive experience with GAO bid protests, agency-level protests, Court of Federal Claims (COFC) bid protests…. While the 2010 NDAA required justification and approval for 8(a) Program sole-source awards valued at or above $20 million (later increased to $22 million), Section 823 of the 2020 NDAA increases this threshold to $100 million. 92 0 obj <> endobj Our sole source eligible UIC Commercial Services subsidiaries include: To explore and realize these benefits for your agency or organization, please contact Ms. Lori Schendel, our Senior Director of Sole Source Contracts. The Office of the Under Secretary of Defense-Acquisitions and Sustainment released a memo today regarding class justifications for procurements. The applicable threshold for civilian agencies and contracting officers, however, has not changed and remains $22 million (13 C.F.R. This change will benefit entity-owned 8(a) Program participants because, under the Federal Acquisition Regulation (FAR) and Small Business Administration’s (SBA) regulations, those are the only participants eligible for sole-source awards above the competitive thresholds ($7 million for manufacturing contracts and $4 million for all other contracts). ;��|�!�k4��zU f��|x__7. Additionally, only tribally-owned corporations such as ANCs can offer sole source procurements protected from protests. 888 17th Street NW Besides permanently authorizing the program, Section 872 requires DoD’s Office of Small Business Programs to establish performance goals and periodic reviews to be submitted to the congressional defense committees by February 1, 2020. ANCs were created under the authority of the Alaska Native Claims Settlement Act (ANCSA), enacted in 1971 to settle Alaska Natives’ aboriginal land claims to most of Alaska. Small Business Programs & Advisory Services. 124.506(b): SBA may award a sole source 8(a) contract to an ANC with a value less than Federal prime contractors are eligible for so-called “bonuses” equal to “5 percent of the amount paid, or to be paid, to a subcontractor” when they subcontract with ANCs or ANC-owned firms, among others. There is no requirement that a procurement must be competed whenever possible before it can be accepted on a sole source basis for a tribally-owned or ANC-owned concern, but a procurement may not be removed from competition to award it to a tribally-owned or ANC-owned concern on a sole source basis. Suite 202 § 124.506(b)(5), and (d)). Contracts whose value is at or below the so-called “competitive threshold” ($4 million, $6.5 million for manufacturing contracts) may generally be awarded on a sole-source basis, without the competition among 8(a) firms that would result if the contract were set aside. EXEMPTION FROM SOLE SOURCE THRESHOLDS SGT, as an 8(a) firm owned by an ANC, will qualify and be exempt from the sole source thresholds on all sole source awards. As an initial matter, this amendment only impacts defense agencies subject to the DFARS. Section 823 – Modification of Justification and Approval Requirement for Certain Department of Defense Contracts Agencies can also contract with ANC-owned firms, although not necessarily ANCs themselves, under the authority of Section 8(a) of the Small Business Act of 1958, as amended. 124.506(b). ��v�@��Hp|�>� ;�@o@D�ԩ��q ����b``� �i�;� =r Strata-G as an ANC 8(a) is exempt from competitive thresholds. 0 Aron Beezley is the co-leader of Bradley’s Government Contracts Practice Group. Bradley Arant Boult Cummings LLP is a national law firm with a global perspective. Why an Alaska Native Corporation? Suite 250 The Government may award sole source contracts to ANC 8(a) companies up to $22M without Justification and Approval (J&A) and more than $22M with J&A, offering an unlimited threshold; The ceiling for sole source contract awards to a non-ANC 8(a) company is limited to $4M for non-manufacturing and $6.5M for manufacturing contracts Section 874 requires the FAR to be revised within 180 days to require that contracting officers provide a brief explanation of award, upon written request from an unsuccessful offeror, for task order or delivery order awards in an amount greater than the simplified acquisition threshold and less than or equal to $5.5 million issued under an indefinite delivery-indefinite quantity contract. Implementation Flexibility & Performance Reliability. Lori Schendel with appropriate justification). %PDF-1.5 %���� 13 CFR 124.506(b)‐ Alaskan Tribal entities are not subject to the standard $4M dollar threshold limitations on sole‐source contract awards that are applicable to other 8(a) entities. Congress authorized such bonuses in 1988, in part, because of concerns that federal prime contractors had less incentive to use Indian-owned subcontractors than other minority-owned subcontractors because of the geographical “remoteness of [Indian] reservation[s].” Congress also appropriated funds for the Department of Defense (DOD), in particular, to pay subcontracting bonuses. (Note: ANCs have additional privileges where sole source awards can be made up to $20,000,000 without any special justification and over $20,000,000. Section 874 – Post-Award Explanations for Unsuccessful Offerors for Certain Contracts The BuildSmart blog provides valuable insights on design, construction and procurement matters. On December 17, 2019, the Senate passed the National Defense Authorization Act (NDAA) for Fiscal Year 2020, sending it to the White House for the President’s signature. Ask Lori about selecting the right company for your sole source contract needs. She brings years of experience in negotiating and managing more than 100 successful ANC sole source procurements between the Government and the subsidiaries of Ukpeaġvik Iñupiat Corporation (UIC). These include: These authorities address the award of contracts, as well as related issues. Increasing the threshold from $22 million to $100 million will make it easier for contracting officers to award much larger contracts as 8 (a) sole sources without competition to 8 (a) concerns owned by a tribe, ANC, or NHO. Available through all SBA-certified 8(a) subsidiaries within the UIC Commercial Services family of companies, sole source contracting with UIC Commercial Services provides the Government with Federal Acquisition Regulations (FAR) and Code of Federal Regulations (CFR) provisioned methods to maximize performance flexibility, mission continuity, and small business goal achievement. First, in 1978, the definition was incorporated by reference in an amendment specifying that small businesses wholly owned by Indian tribes were eligible for the loan program implemented under the authority of Section 7(a) of the act. 121 0 obj <>/Filter/FlateDecode/ID[]/Index[92 50]/Info 91 0 R/Length 124/Prev 196133/Root 93 0 R/Size 142/Type/XRef/W[1 2 1]>>stream UIC Government Services, 6700 Arctic Spur RoadAnchorage, Alaska 99518-1550, Website designed in association with BEACON MEDIA + MARKETING. Nathaniel represents clients in a range of government procurement issues, including bid protests, claims, disputes, audits and investigations. Second, 1986 amendments to the Small Business Act used the language of the 1975 definition when making “economically disadvantaged” Indian tribes and ANCs eligible for the 8(a) Program. This 1975 definition of “Indian tribe” was used in two later amendments to the Small Business Act. 141 0 obj <>stream While all affiliations between businesses, or relationships allowing one party control or the power of control over another, count when the SBA makes size determinations, certain affiliations with the parent ANC or its subsidiaries are generally excluded when the SBA determines the size of an ANC-owned firm. Notably, Section 872 changes the definition of a “disadvantaged small business concern” to align with how small businesses are defined in other programs. If you have any questions about this noteworthy development or the 8(a) program in general, please feel free to contact Aron Beezley or Nathaniel Greeson.

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