In a recent conversation, a GSA employee described the Federal Acquisition Regulation, or the FAR, as the government contracting officer’s Bible.  While this statement was surely hyperbole, the importance of the FAR in both the theoretical understanding and practical applications of federal contracting cannot be overestimated.  The FAR is in essence the set of rules under which federal contracting officers and federal contractors conduct their respective business.

First Month of Women Owned Small Business Set-Aside Program a Success

In January the GSA/Fed Marketing Blog reported on the U.S. Small Business Administration’s approval of a government contracting set-aside for Women-Owned Small Businesses (WOSBs).  On October 7, 2010, the SBA published a final ruling to be effective on February 4, 2011.  The ruling created contracting directives in specific industries designed to channel 5% of all Federal-contracting dollars towards WOSBs.  For more information on this rule, please refer to the original post, “New Rule Sets Aside Billions for Women-Owned Small Business Contracts.” For an updated analysis of the program’s certification process, based on the first month of operations, please read on. 

Government contracting programs for small businesses have been the subject of much discussion lately, both in the news and here at the Fed Marketing Blog.  The long-awaited revision of the U.S. Small Business Administration’s 8(a) Business Development Program, one of the most significant small business aid initiatives, has stirred this topic into focus.  As you may recall from last week’s blog entry, New SBA Final Rule Tightens 8a Contracting Restrictions, small business programs are stepping up efforts to eliminate abuse.  The SBA, who creates and monitors most of these efforts, maintains strict eligibility requirements. 

The United States Office of Government Ethics (OGE) is an executive branch agency responsible for establishing policies to reduce, and hopefully eliminate, conflicts of interest between the federal government and its employees.  The OGE establishes regulations, standards of conduct, and training programs on the many forms of criminal ethics violations.  As you might imagine, the potential for conflicts of interest is high in government contracting.

Continuing with our discussion of the U.S. Small Business Administration’s 8(a) Business Development Program, recent rule changes have affected the program and its offerings.  The SBA recently published a final ruling, scheduled to take affect on March 14, 2011, that will strengthen the 8(a) Program by preventing waste, fraud and abuse.  In sum, the Final Ruling should better ensure the benefits of the program properly flow to the intended recipients.

In his State of the Union Address two weeks ago, President Obama referred many times to the importance of small businesses and the role they play as the backbone of the American economy.  As a small business owner, you might then wonder why it seems so difficult to enter into a business relationship with the government.  Navigating the complexities of government contracting can be quite challenging for a firm that cannot dedicate personnel and resources to the issue. 

Subcontracting is an excellent way for businesses to break into the government market.  If your firm is ready to market and sell its product or service to the government and all of its agencies, subcontracting might be the perfect fit.  Subcontracting offers a blend of sales opportunity and learning experience that makes it an ideal solution for any firm looking to grow into a sizable government contract of its own.

After an eleven-year debate, the U.S. Small Business Administration (SBA) has recently set forth a final ruling designed to expand federal contracting opportunities for women-owned small businesses (WOSBs).  On October 7, 2010, the SBA published this Final Rule to be effective February 4, 2011.  On that future date, qualifying WOSBs will be afforded significant advantages in the competition for government contracts.  Ultimately, the SBA hopes 5% of all Federal contracting dollars buy goods and services provided by WOSBs.

Reps and Certs

As you may know, the Representations and Certifications phase of the Federal contracting process, often expressed as simply ‘Reps and Certs,’ has been making a few headlines recently.  In the past few months the Wall Street Journal, the New York Times, and other publications have documented several cases of companies repaying the government for entering into contracts for which they did not qualify.  These reports of companies abusing federal programs designed to channel government business toward specific classes of small and/or disadvantaged firms have highlighted the importance of the Reps and Certs process.  This spotlight on the issue has also served to amplify the scrutiny under which firms’ claims are verified.

Law firm Sheppard Mullin recently posted an excellent summary of the 2010 Small Business Jobs Act and its impact on federal contractors.   I am listing some of the pertinent points below, but you should read the full summary by clicking here.