On February 4, 2011, the U.S. Small Business Administration is set to launch its Women-Owned Small Business Program, which is intended to create a set-aside structure for WOSBs similar to the existing 8(a) platform.  The overall goal of the new program is to expand federal contracting opportunities for women-owned businesses within 83 different industries (identified by NAICS code) where WOSBs have traditionally been underrepresented.  Some of the eligibility requirements for participation in the WOSB program include: (1) the company must be “small” in its primary industry in accordance with SBA size standards; (2) the company must be at least 51 percent directly and unconditionally owned by one or more women; and (3) control and day-to-day management of the company must be in the hands of one or more women.

Even a dog knows the difference between being accidentally stepped on and intentionally kicked.  Having your contract terminated by the government is similar. If it happens because circumstances have changed, it’s like being accidentally stepped on. You don’t like it, but you know it wasn’t intentionally done to harm you. But if your contract is terminated solely because the agency seeks a better price—that is an intentional kick to the gut. Does the law recognize the difference between these two scenarios? Read on.

Congress recently passed legislation (Section 893 0f the National Defense Authorization Act of 2011) requiring the Secretary of Defense to develop a program ensuring that “contractor business systems” provide timely, reliable information for the management of Department of Defense programs.  “Contractor business systems” include accounting systems, estimating systems, earned value management systems, material management and accounting systems, and property management systems. 

The program required by this legislation will set requirements for contractor business systems, establish a process for reviewing contractor business systems, and provide for disapproval of any contractor business system that has a significant deficiency.  If a contractor business system is disapproved, DoD will work with the contractor to develop a corrective action plan.  Until the system is approved, DoD may withhold up to 10 percent of progress and other payments on cost type contracts with contractors that are covered by the Cost Accounting Standards.

The Percy Amendment gives American-owned bidders a ten percent price advantage when competing for State Department construction projects.  To qualify as American-owned, the statute requires evidence that the bidder has performed “similar construction work in the United States or at a United States diplomatic or consular establishment abroad.”  22 U.S.C. § 302(b)(4)(A).

The State Department regulation implementing the Percy Amendment does not allow for consideration of foreign construction experience.  It states that similar construction work must have been performed in the United States.  DOSAR 652.236-71.  This conflict was the subject of a recent bid protest decision in Perini Management Services, Inc., B-404261, et al. (December 17, 2010).

The Justice Department’s most recent fraud statistics are worth checking out if you follow enforcement of the False Claims Act.  The federal government is reporting that it collected over $3 billion in judgments and settlements in False Claims Act cases resolved through the end of Fiscal Year 2010. About 80 percent of the recoveries were…