Tag Archives: Give Me 5

New Overtime Regulations to Take Effect December 1, 2016

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By Marina Burton Blickley, Esq., Centre Law & Consulting LLC

A draft of the Department of Labor’s final revised regulations covering white collar exemptions was just released and is set to become effective December 1, 2016 – right after elections.  The final rule sets the new salary threshold for exempt executive, administrative, and professional employees at $47,476 annually and $134,004 for exempt highly-compensated employees.  This is a dramatic increase from the prior levels of $23,660 and $100,000.  Now that the final salary levels are known companies should be reviewing their employee classifications and making adjustments where necessary to be prepared to be in compliance come December 1, 2016.  Government contractors with contracts covered by the Service Contract Labor Standards (formally Service Contract Act) should also perform an analysis to ensure employees performing services on those contracts are being provided appropriate wages and health and welfare benefits since the FLSA overtime exemptions are used to determine coverage under that Act.

There have been a number of recent updates to the employment laws governing employers generally and, in particular, government contractors.  WIPP’s Give Me 5 recently hosted a webinar covering these and other changes.  To learn more, please listen to the podcast available here –

 

Give Me 5: Where Human Resources and Government Contracts Intersect

Guest Speakers:  Barbara Kinosky, President and Managing Partner, Centre Law & Consulting and Marina Blickley, Associate, Centre Law & Consulting

Federal contractors are subject to a unique set of rules, laws and regulations.    Many of these laws and regulations also apply to subcontractors.   This session covers the more complicated areas where HR and government contracts intersect.  Topics include:

  • OFCCP – latest news on increased HR compliance requirements
  • Executive Order actions and recent regulatory changes
  • Common challenges to complying with the Service Contract Labor Standards/Service Contract Act
  • Tips for handling whistleblower and relator complaints
  • Handling mandatory disclosures
  • Changes to implement now

Listen to the Podcast | View the Presentation

 

Federal Government Meets 5% Federal Contracting Goal for Women-Owned Small Businesses for the First Time in Twenty Years

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Women Impacting Public Policy (WIPP) is thrilled to celebrate the U.S. Government’s achievement of awarding five percent of its annual federal contracts to women-owned small businesses for the first time since the goal was set more than twenty years ago. The five percent goal was put in place as part of the Federal Acquisition Streamlining Act of 1994 and led to the creation of the Women-Owned Small Business (WOSB) Federal Contract program in the Equity in Contracting for Women Act of 2000.

WIPP, and our partner American Express OPEN are longtime champions of women entrepreneurs in the federal contracting space, creating the Give Me 5 program in 2008 to give women-owned small businesses access to knowledge and resources to help win federal contracts. At the time, just 3.4% of federal contracts were awarded to women-owned small businesses—roughly $13 billion of the approximately $400 billion awarded annually.

In April 2013, WIPP, American Express OPEN and the Small Business Administration (SBA) launched ChallengeHER, a national initiative to boost government contracting opportunities for women-owned small businesses. ChallengeHER delivers free workshops, mentoring and direct access to government buyers. Now entering its fourth year, ChallengeHER has educated more than 5,400 women entrepreneurs at 39 workshops across the country and facilitated more than 1,900 meetings between women small business owners and government officials.

The contracting landscape for women-owned businesses has improved significantly as a result of strong public and private support and bipartisan efforts. In early 2013, due to the efforts of WIPP and their coalition partners, President Obama signed into law the National Defense Authorization Act (NDAA) which removed caps on eligible federal contract awards under the U.S. Small Business Administration’s Women-Owned Small Business (WOSB) Federal Contract program. Before the law was put into place, awards to women-owned small business were capped at $4 million and $6.5 million under the program. WIPP had further success in improving the WOSB Federal Contract Program in 2014 with the passage of a new law that provided federal agencies with statutory authority to award sole-source contracts to women-owned small businesses. The WOSB program was the only major small business contracting program without this authority at the time – putting women entrepreneurs at a distinct disadvantage.

A hearty congratulations and thanks to the folks at SBA, American Express OPEN, the WIPP team, and all of the organizations and women business owners that have helped improve and increase access to the federal marketplace for women-owned small businesses.  Job well done!

Success: Sole Source Finalized

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by Ann Sullivan, WIPP Government Relations 

When you’ve been working on a program for 15 years, it’s almost anti-climatic when you realize you won and it’s over. I suppose lawyers feel this way when they win a big case, or business owners when they close a major contract.

For me, the SBA announcement integrating a sole source component into the WOSB procurement program on October 14, 2015 marks the end of a long campaign by Women Impacting Public Policy (WIPP). First, we fought for eleven years to establish a program that gives a government buying preference to women-owned companies whose industries have been underrepresented. Not an easy fight – we had plenty of Congressional and White House opponents—it wasn’t until the Obama Administration came into power that the program was established. At the time, SBA Administrator Karen Mills made it her number one priority, which we will always be thankful for. We had strong Congressional proponents – Senators Cantwell and Shaheen and Representatives Speier and Graves.

Then, we had to make the program work. That required two major changes to the program in 2013 and 2014. The first change required lifting the award caps the law imposed on the program. The WOSB procurement program limited contract awards through the program to $4 million ($6.5 million for manufacturing). In 2013, Congress helped us get rid of those caps. The last big piece was the sole source piece—allowing contracting officers to award sole source contracts to women-owned companies through the program. This major change gives the program parity with other small business programs and again, required Congressional action. Effective October 14, agencies will be able to use this mechanism to award contracts to women whose companies offer innovative products and services.

As with all government programs, the rules are a little complicated and the ability to self-certify as a woman owned business will eventually have to change, due to Congressional direction in 2014. But for now, self-certification remains the law and women should be actively pursuing contracts through the WOSB procurement program whether or not they are self-certified or certified by a third party.

It is important to note that not all industries (NAICS codes) qualify for the program. You can find a list at http://www.SBA.gov/WOSB. We have developed a one pager that go through the rules of the sole source portion of the program and our GiveMe5 program has comprehensive information on the WOSB program. In addition, our ChallengeHER events are all over the country so that women can find out more about the program. The information can all be found at www.wipp.org.

The WOSB procurement program is in good hands. All the major pieces to make it successful are in place. When we started this effort in 2002, women received 2.7% of government contracts. Since the program has been in place, more than $500 million has been set-aside for women- owned companies. In fact, in 2014 the government awarded 4.7% of its contracts to WOSBs –a 75% increase since 2002. Now women business owners need to know how to use it with the help of SBA, the federal contracting community and organizations, such as WIPP.

Fifteen years seems like a long time, but when you are fighting for something—somehow it doesn’t seem that long. WIPP members and coalition partners were with us every step of the way. For this, I am exceedingly grateful.

Bonds: An Important Weapon In Any Contractor’s Arsenal

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It is vital that construction contractors, regardless of tier or trade, understand the basic principles of contract surety bonds. An understanding of how bonds are used in construction; and, importantly, how the surety company prequalifies the contractor is critical.   Surety Bonds are mandated by various federal, state and local laws, but may also be required by the private sector as well. Recently, as part of WIPP’s Give Me 5 webinar series, bonding specialist Ellen Neylan, along with construction counsel, Jennifer M. Horn and Maria Panichelli, discussed these issues in detail. Below are some highlights of the discussion.

The Performance Bond secures the contractor’s promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed. The Payment Bond protects certain laborers, material suppliers and subcontractors against nonpayment. Since mechanic’s liens cannot be placed against public property, the payment bond may be the only protection these claimants have if they are not paid for the goods and services they provide to the project.

In order to obtain a bond, the contractor must be prequalified. Sureties should not bond a contractor that does not meet their prequalification standards. The surety company’s pre-qualification process carefully analyzes the contractor’s entire business operation, much like a bank, because the surety is backing the promise that the contractor will perform the contract. The surety determines the contractor’s ability to meet current and future contract and financial obligations.

The parameters of bonding on a project are often dictated by the law. For example, the Federal Miller Act requires surety bonds for the “construction, alteration, or repair of any public building or public work of the United States for an amount greater than $100,000.” When filing surety claims against Miller Act bonds, subcontractors should be aware that timing is critical. Even though no notice is required, first tier subcontractors must wait 90 days from non-payment to give the bond principal a chance to make payments. In addition, all suits must be filed within one year of last work performed or materials supplied. It’s very important that the claim notice clearly state the amount being claimed, the name of the party to whom labor or supplies were provided, and that the subcontractor is making a formal claim against the bond principal.

The Surety will not pay claims without regard to their merits, but it should be expected to respond to claims promptly and, if denying a claim, offer an explanation. Finally, the Surety, with the aid of legal counsel, can assert all defenses of its bond principal, unless precluded by bond or contract language. Examples of defenses might include: breach of contract; recoupment/setoff; and failure to mitigate damages.

For more detailed information about this important topic, tune in to the recent webinar:

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Give Me 5: Construction Unit – Bonding and Liens 

As a federal contractor in the construction industry, it is imperative that you obtain proper bonding – but this is a highly complicated subject that could end up costing you an incredible amount of money if you don’t fully understand the nuances and ramifications. This webinar unravels the most important aspects of bonding and liens providing you with important guidelines for success.

Course Instructors: Jennifer Horn, Partner, Cohen Seglias Pallas Greenhall & Furman PC & Maria Panichelli, Associate, Cohen Seglias Pallas Greenhall & Furman PC and Special Guest: Ellen Neylan, Founder, Surety Bonds Associates

Listen to the Podcast | View the Presentation