FAR Council Embraces Sole Source

By: Jake Clabaugh, WIPP Government Relations

Women Impacting Public Policy (WIPP) recently submitted comments on the interim rule implementing sole source authority into the Federal Acquisition Regulation (FAR).  For more details please read WIPP’s full comment here.

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WIPP’s 15-year effort to expand contracting opportunities for women entrepreneurs cleared an important hurdle with sole source authority finalized in the government’s contracting rulebook. The Federal Acquisition Regulation (FAR) is the government’s official source for rules when it comes to awarding contracts. Implementing sole source authority into the FAR means that women entrepreneurs wll now be competing on a level playing with other small business contracting programs.

WIPP’s comment on this rule acknowledged the FAR Council for recognizing the “urgent and compelling need” to grant contracting officers this authority. Their recognition is the culmination of years of hard work and advocacy to bring parity for women-owned contracting firms.

Although the Small Business Administration (SBA) published sole source rules last fall, some contracting officers had been waiting for official language to be put into the FAR before they would use sole source authority.  WIPP members have experienced this inconsistency firsthand and WIPP’s comment highlighted how important it is for the FAR to eliminate the conflict.

The FAR Council’s rule became effective on December 31, 2015 – a great way to start the New Year. Contracting officers now have official instructions to award sole source contracts through the WOSB Procurement Program. We encourage women business owners to comment on this important victory for our community. If you wish to echo WIPP’s comments, you can submit them electronically using Regulations.gov and search for “FAR Case 2015-032.” Please use the “Comment Now” option, which will provide instructions for uploading your document and ensure that your voice is heard.

 

House Committee Passes Bipartisan Federal Contractor Changes

By: Ann Sullivan, WIPP Government Relations

 

In its first major action of 2016, the House Small Business Committee approved changes to federal contracting which affect small companies who do business with the federal government. Acting in a bipartisan manner is relatively rare in Congress these days, but the Committee unanimously adopted the legislation, The Defending America’s Small Contractors Act of 2016, with over two-thirds of the Committee contributing content to the bill.

 

For the last three years, the House Small Business Committee has pushed for changes to the government’s buying rules and this week’s legislation was no exception. In our view, the following changes in the bill will prove to be significant to small contractors. One attacks an age-old problem – showing past performance without a government contract. The bill establishes a pilot program that enables contractors to receive a past performance rating by submitting a request to the contracting officer and/or prime contractor.  Second, the bill strengthens agency small business offices to recommend which small business set-aside programs should be used for each contract at their agency.

Anne CrossmanThird, WIPP’s recommendations were incorporated in the legislation, including one made by Anne Crossman, a member of WIPP’s Leadership Advisory Council, in her testimony before the Committee. Anne took the opportunity to highlight WIPP’s “if you list us, use us” policy for prime contractors’ subcontracting plans. This bill incorporates WIPP’s recommendations to clarify the role of commercial market representatives (CMRs) in encouraging prime contractors to work with small businesses. Lastly, the bill takes the first step toward getting a better handle on the actual amount set aside for small businesses by requiring agencies to divulge awards counted toward multiple small business goals.

An amendment offered by Rep. Takai scored a victory for women entrepreneurs by allowing Women’s Business Centers (WBCs) to provide procurement assistance to women participating in the DOD mentor-protégé program. Rep. Takai’s statement on the amendment is available here and includes WIPP’s statement of support.

These improvements set the stage for a productive year of improvements for small contractors. The bill, which passed unanimously, will now be considered by the full House of Representatives. The House Small Business Committee is off to a great start. We can’t wait to see what they do next.

Did You Really Mean That FCC?

 

This week, the House Energy and Commerce Committee held a hearing on a bill, HR 2666, which would prevent the FCC from regulating broadband rates. In fact, the FCC’s Chairman Tom Wheeler is quoted as saying “Let me be clear, the FCC will not impose ‘utility style’ regulation…” when
issuing the Commission’s decision to subject broadband service providers to regulations that govern telecommunications services – Title II of the Communications Act.

 

That begs the question, why pass a bill that reiterates what the Chairman promised? There are a couple of reasons why. First, FCC Commissioners do not have permanent appointments—they arinternet.jpge appointed by the President and serve five-year terms. While we doubt anyone questions Chairman Wheeler’s integrity, the next set of Commissioners may not hold the same view. Second, regulating rates in utility- style fashion does not really fit the fast moving technological changes that come with the industry providing internet services. Third, talk about a damper on investment – subjecting broadband networks to the government’s slow ratemaking process would surely have a negative effect.

 

As we understand this issue, no one is purporting to restrict the FCC’s ability to protect the consumer with respect to broadband access or technology companies who rely on an open internet to conduct business. Women-owned businesses have much to lose if the government does not properly balance internet access with regulation.

 

We are keenly aware that according to the SBA Office of Advocacy, “Small businesses, defined as firms employing fewer than 20 employees, bear the largest burden of federal regulations. As of 2008, small businesses face an annual regulatory cost of $10,585 per employee, which is 36 percent higher than the regulatory cost facing large firms (defined as firms with 500 or more employees).” Small businesses are usually the losers when it comes to more regulation.

 

The Congress ought to pass this bill. Broadband access is a critical lifeline to all businesses. Business certainty resonates throughout our economy—especially small companies. Putting the FCC intent into law with respect to broadband rate regulation is a good idea.

National Women’s Business Council Releases its Annual Report

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The National Women’s Business Council has released its Annual Report, “10 Million Strong – The Tipping Point for Women’s Entrepreneurship,“ and the number of women looking to be entrepreneurs is at an all time high. Women ‘s entrepreneurship has gone from being a trend to a huge growth factor to the economy of this country. According to the report, women-led businesses are predicted to increase by more than 50% over the next five years – women are launching roughly 1,200 new businesses per day.

 

Better resources and opportunities have created an opening for women to grow their brands and build larger networks to support their products and businesses, crowdfunding being one of the best resources. Though women are still far behind men in financing their businesses, they are receiving more funds today than ever before.

 

In 2016 the Council is looking to keep the growth momentum going and will continue to research and support women business owners. Click here to view the full report online.

From the Hill: Small Contractors Make Big Gains in New Legislation

By: Jake Clabaugh WIPP Government Relations

 

ChabotThe House Small Business Committee is leading off 2016 by continuing its
efforts to make federal contracting more accessible to small businesses. Committee Chair Steve Chabot’s (R-OH) legislation, Defending America’s Small Contractors Act of 2016, makes an array of changes to procurement policy.

Although impossible to summarize all of the changes in a few paragraphs, which is why we have the link to the bill above, here are the highlights. The bill tackles transparency by rewriting – in plain English – the requirements for small business procurements. Since getting past performance is an obstacle for contractors getting started in federal contracting, the bill establishes a pilot program that enables them to get a past performance rating by submitting a request to the contracting officer and prime contractor. Offices of Small and Disadvantaged Business Utilization (OSDBUs) will now have increased authority to recommend which small business set-aside programs are most appropriate for each contract at their agency. The Act even touches the Department of Defense (DOD) by requiring that Mentor-Protégé plans in DOD’s program be approved by SBA – an update aimed at adding consistency to Mentor-Protégé Programs government-wide – but controversial since the last time we looked the Defense Department does not generally defer to SBA.

If some of these changes sound familiar, it’s because Anne Crossman, a member of WIPP’s Leadership Advisory Council, proposed several of these improvements during a Subcommittee hearing last fall.  Specifically, Anne noted WIPP’s “if you list us, use us” policy for prime contractors’ subcontracting plans and in her testimony she advocated for prime contractors to be accountable to the subcontractors listed on their plans. This bill incorporates Anne’s recommendations by requiring commercial market representatives (CMRs) assist prime contractors in identifying small business subcontractors and assess the prime’s compliance with their subcontracting plans.

The intent of the legislation is to assist federal agencies in meeting their small business contracting goals. The goal for women owned companies of 5% has never been met. A continued push for data transparency surfaces in the bill as well, requiring agencies to do a better job of reporting the contracting dollars awarded to small businesses.

The Committee is expected to hold a markup to consider this legislation during the week of January 11.  The WIPP Government Relations team will continue to provide updates as the bill moves through Congress.

AT&T Announces Plans to Connect Everything We Own to Everywhere We Go

By Lynn Bunim, WIPP Membership & Special Programs Director

ATTAt its Developer Conference running in Las Vegas parallel to the Consumer Electronics Showcase, AT&T spent time talking up the potential of reaching its 132 million wireless customers and 45 million video customers. The change in the tenor, from showing off its newest phones or touting the latest upgrade that speeds up its wireless network, speaks to how AT&T plans to be a part of its customers new, more connected life. The carrier recognizes it is no longer enough to power your smartphone or home DSL connection. It wants to be the link that connects your car, the health devices that monitor your body and even the infrastructure in your city.

“This is a new AT&T,” Ralph de la Vega, CEO of the company’s mobility and enterprise business, said in his keynote address. The push is part of the Internet of Things trend. The idea is that every device — whether it’s a refrigerator or glucose monitor — talks to each other to better serve you, with AT&T angling to become the bridge between things. Those connections are going in everywhere, including coolers built by Red Bull that enable the company to track their location, state and temperature.

AT&T offered new information about its smart cities initiative, through which it promises to bring everything from traffic monitoring to electric grid management to gunfire detection into one comprehensive ecosystem. The program’s initial cities will be Atlanta, Dallas, and Chicago, and it involves a huge range of partnerships, with giants including Cisco, Ericsson, GE, IBM, and Qualcomm. “We are going to go up the stack,” says AT&T Mobility CEO Glenn Lurie. “We are going to bring things that are complete solutions.”

WIPP’s membership and WIPP’s Coalition Partners comprise thousands of entrepreneurs and women owned small businesses, all of whom are on the move all the time.  Improved connectivity could bring improved productivity for this important segment of the business community.

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WOSB Sole Source Takes Final Step

sole sourceThe contracting rulebook used by most federal agencies embraced the new sole source authority for women entrepreneurs. In the final step of a multi-year effort – with WIPP at the helm – the government gave the final green light for contracting officers to award sole source contracts to women business owners.

 

Deciding that finalizing the sole source authority of the WOSB program was an urgent and compelling need, the FAR Council issued an interim rule on December 31, 2015, to immediately allow contracting officers to award sole source contracts in the WOSB program. While the Small Business Administration (SBA) already finalized their rules for WOSB sole source on September 14, 2015, the FAR Council needed to issue guidance to contracting officers on how to use the program. This rule provides that guidance and is effective immediately. Notably, the FAR Council determined that sole source applies to acquisitions at or below the acquisition threshold.

 

As a reminder, sole source contracts are allowed in the WOSB program when four conditions are met:

 

  1. Contract falls in a NAICS code approved for the WOSB program.
  2. The value of the contract, including options, is under $4 million ($6.5 million for manufacturing contracts).
  3. The contract can be awarded at a fair or reasonable price.
  4. The contracting officer does not have a reasonable expectation that two or more WOSBs/EDWOSBs will submit offers at a fair and reasonable price.

 

The interim rule is available here, with comment due February 29, 2016. While a final rule will ultimately be issued, this rule makes sole source effective in the FAR as of December 31, 2015.

House Committee Talks Taxes For Small Businesses

BY: Jake Clabaugh, WIPP Government Relations

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If, like most small business owners, you have concerns about year-end tax planning, Congress may have a Holiday present for your business’ bottom line.

 

An agreement to reauthorize tax rules, known as “extenders,” could come before Congress adjourns for their Holiday recess. Extenders are temporary tax rules and require Congress to authorize their renewal. Extension of these provisions, although temporary, could save your business from significant tax liability.

 

For small businesses, these changes can have a tremendous impact. The House Small Business Committee held a hearing, “Employers of Choice: How the Tax Extender Debate Will Affect Small Business” on December 3 to discuss how the year-to-year renewal process impacts small firms. The hearing allowed members of the small business community to explain the importance of these tax rules and how uncertainty can negatively affect investments by small businesses.

 

Did your small business invest in any equipment this year? Then one tax extender that is important for your business is often referred to by its place in the tax code, Section 179, or simply as “Small Business Expensing.” This rule allows businesses to deduct the full cost of equipment purchased during the tax year, subject to certain conditions, instead of writing off portions of the purchased equipment over several years. If this provision is not extended, small businesses that made significant investments in equipment could face higher tax liability.

 

Last year, Congress agreed to reauthorize certain tax extenders for the 2014 tax year. For the 2015 tax year, negotiators in the House and Senate are still determining what tax rules to extend and for how long. A similar bargain is expected this year, but it is still unclear what provisions will be included.

 

For more information, please see WIPP’s advocacy efforts on the Economy and Tax.

3 Ways Employee Policies Can Protect Your Business

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By Kristen Prinz, Founder and Managing Partner of The Prinz Law Firm

A study by specialty insurer Hiscox was recently published finding that U.S.-based companies have at least an 11.7 percent chance of facing an employment law charge. The study claims that the average cost for small and mid-sized businesses to defend these claims is $125,000. That’s a lot of money. It makes having effective employee policies all the more important.

On November 16, 2015, at 1:00 pm CST, I will be presenting the webinar 10 Employee Policies that Minimize Business Risk for WIPP and the WBDC. Participants will learn about 10 policies that can help businesses avoid the $125,000 average. Here are three ways that these polices can help protect your business:

  1. Address claims before they become lawsuits.

Employee policies can provide employees with an internal method to resolve a potential claim. Businesses can use policies to encourage and require that concerns about discrimination, harassment or even wage issues be reported. Knowing the concerns of your employees puts an organization in a much better position to swiftly resolve an issue that could otherwise become a lawsuit.

  1. Show the government your business is committed to compliance.

Having anti-discrimination and anti-retaliation policies shows the EEOC that your business has taken a stance against discrimination and retaliation. Similarly, an effective time keeping policy can show the DOL that your business is taking appropriate steps to comply with wage laws. These policies can bolster a defense when an agency audits your business or investigates a claim.

  1. Create a positive workplace culture.

Your business shouldn’t just have policies; it should abide by them and enforce them. Having well publicized policies that demonstrate your business’s dedication to a positive workplace is one of the best ways to deter employment law claims. Employees are far less likely to sue an employer they believe supports and values them.

To learn about the 10 policies that can help your business (i) address claims before they become lawsuits, (ii) show the government your business is committed to compliance, and (iii) create a positive workplace culture, register now for the WIPP and WBDC webinar 10 Employee Policies that Minimize Business Risk.

WIPP National Partner of the Month – October 2015: Lynlee Altman

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WIPP National Partner of the Month – October 2015

LynLee Altman, President and Founder of Pinnacle Construction Development Group, Inc. – Cleveland, OH

 

We sat down with Lynlee to hear a little more about her company and her relationship with WIPP…

 

Tell us a little about your company and its mission.

Pinnacle Construction is a general contractor specializing in unique, complex, and safety-critical construction.  As a full-service design-build company, Pinnacle delivers one-of-a-kind projects nationwide, including anything from recreating the surface of Mars to blastproof access control points.  We have successfully tackled numerous high profile projects that would intimidate most other construction firms.  Accelerated timelines, hazardous environments, atypical engineering specifications, environmental sensitivities and historic preservation are all par for the course for Pinnacle, where failure is not an option.

Have you always been an entrepreneur?  If not, what, or who, inspired you to take this leap?

Unlike the typical entrepreneur who grew up with a lemonade stand or selling girl scout cookies, I would consider myself to be an accidental entrepreneur. I cut my teeth working for larger businesses and my small business began as more of a night-job.  Eventually, it became clear that my night job was really where my passion lied, and I made the decision to devote all of my time to Pinnacle.

What has been your biggest lesson learned in working with the Federal Government? 

Teaming with other businesses is the key to growth. I call it Co-op-etition, a combination of cooperating and competition.  Rather than viewing other companies as competitors, there is tremendous opportunity in building them up.  Pinnacle’s very first client is Pinnacle’s largest subcontractor today.   Over the years, we have built trust and a strong history of performance with our teaming partners, and that relationship has enabled us to complete things together that we didn’t have the capabilities to complete alone.

Do you have a contracting success story that you are proud of? 

As a firm believer in the capabilities of small business, I am most proud when Pinnacle competes against large businesses and triumphs.  The personal attention and true teaming nature that we can give to clients sets us apart from a large business working on hundreds of jobs across the country simultaneously.  Our clients understand that they have our full attention, and they are, at that moment, our most important project.   The clients and agencies that embrace that differentiating factor, are the people that we enjoy working with the most.

Tell us about your experience as a WIPP Member? What resources/value has WIPP provided that has been helpful to you and your company?

WIPP has been instrumental in introducing me to the right people.  In the federal marketplace, there are a select group of individuals who are committed to building small businesses. These amazing people, all of whom are known by WIPP, recognize the importance of small businesses to the health of our country and economic policies, and many of them have dedicated their lives to the cause.  These individuals have truly impacted the federal market place, and if you are willing to match their time and efforts, they will help you build a strong business.