Unless Congress takes action by March 4, 2011, most federal agencies will be required to cease operations, presenting significant challenges for contractors. Whether you’re optimistic or pessimistic about the prospects of a political solution that would avoid the looming government shutdown, preparing for it is a necessity. News reports on the issue are interesting, but they don’t do much in the way of developing a strategy for handling a shutdown. Here is a look at some of the key questions presented, with answers based on decisions that came out of the now infamous 1995 government shutdown.

The Office of Federal Contract Compliance Programs has been busy the past few months and anticipates heightened activity in the months to come. New OFCCP initiatives include: (1) asserting jurisdiction over healthcare providers, (2) revamping efforts to identify workers misclassified as contractors; (3) proposing new affirmative action regulations for construction contractors; and (4) increasing enforcement

It’s a worst-case scenario for many government contractors. Despite using strict confidentiality agreements and bold restrictive legends, the government releases a valuable trade secret to the public. The Trade Secrets Act may result in criminal consequences for the offending individuals, but the more pressing question for the contractor is how to recoup the loss of a valuable asset. The recent decision in Spectrum Sciences and Software, Inc. v. United States, No. 04-1366C (Fed. Cl. Feb. 14, 2011) [pdf], offers some guidance.

The Postal Service recently issued a revised version of its purchasing policy manual, called the Supplying Principles and Practices (SPP).  The changes adopt recommendations made by the USPS Office of Inspector General (OIG) in two high-level reviews conducted in 2010. The revisions add new procedures and requirements applicable to noncompetitive procurements, and establish an internal Competition Advocate.  For more details, read on.

The Small Business Administration has launched an informational website addressing its new Women-Owned Small Business Federal Contract Program. The website includes a step-by-step guide on how to participate in the new set-aside program, as well as links to explanatory statements and SBA contact information. The final regulations implementing the program were published on October 7

In National Aeronautics and Space Administration v. Nelson, No. 09-530 (U.S. Jan. 19, 2011) [pdf], the Supreme Court concluded that employees of government contractors can be subjected to the same background checks conducted on federal civil servants, without violating the privacy protections in the Constitution. The decision specifically rejects a challenge to questions about the past use of illegal drugs, including whether prospective contractor employees had previously received treatment or counseling for drug use.

It’s a common assumption in litigation under the Freedom of Information Act that trade secrets lose value with the passage of time. The January 19, 2011 decision in Taylor v. Babbitt, No 03-0173-RMU (D.D.C. Jan. 19, 2011), shows there’s much more to the story. The case involved a 2002 FOIA request seeking “plans, blueprints, specifications, engineering drawings and data” submitted to the government in 1935 in support of a type certificate application for the Fairchild F-45.  After a harrowing ride through the court system, including a trip to the Supreme Court, United States District Judge Ricardo M. Urbina ordered the government to produce the 75-year-old documents.