Documents With Short Approval Deadlines Must Be Carefully Drafted

Short deadlines leave little room for error. When the government gives a contractor a short document approval deadline, the contractor’s initial submission should strictly follow regulations because there may not be time for required revisions, as an 8(a) joint venture found out recently.

In that case, the only remaining approval the JV needed to be awarded an 8(a) Army contract was the Small Business Administration (SBA)’s approval of the 8(a) JV Agreement. Unfortunately for the JV, the SBA by law had only five business days to approve the agreement. Because the JV had not properly drafted the agreement it originally submitted to the SBA, five business days was not enough time for the SBA to review and approve a revised agreement. After time ran out on both the SBA and the JV, the Army awarded the work to another 8(a).    

The JV’s loss of the Army contract was unfortunate and probably preventable. The agreement initially drafted by the JV and sent to the SBA for approval omitted several provisions specifically required by SBA regulations. If experienced legal counsel had been involved in the drafting of the JV agreement from the start, these required clauses would have been included in the initial JV agreement, and the short SBA deadline would most likely not have prevented the JV from getting the work.

The decision shows that getting experienced legal counsel to carefully draft foundation documents is essential to winning government contracts, especially when approval deadlines are short and leave little time for error.    

Terrence O'Connor is the Director of Government Contracts for Berenzweig Leonard, LLP, a business law firm in the D.C. region. Terry can be reached at toconnor@berenzweiglaw.com.

New SBA Rule Promotes Growth and Development of Women-Owned Small Businesses

Women-owned small businesses are growing three times faster than their counterparts, yet they currently receive less than 5% of federal contracting dollars. The U.S. Small Business Administration (SBA) recently issued a final rule that is “a major step forward in leveling the playing field and supporting our country’s dynamic female entrepreneurs,” said SBA Administrator Maria Contreras-Sweet. This new rule encourages more women entrepreneurs to grow and start new businesses and create more jobs.

The SBA’s new rule, effective October 14, 2015, gives contracting officials the authority to award sole-source contracts to women-owned businesses without first placing the work out for bid. The rule seeks to provide greater opportunities for women-owned small businesses in the federal contracting marketplace, on par with the opportunities afforded to other types of small businesses. Contracting officials are currently able to award sole-source contracts to minority or service-disabled veteran-owned small businesses.

The rule sets out certain requirements that must be met before a sole source contract is awarded. First, a contract can only award up to $4 million (or $6.5 million for manufacturing contracts). Second, the selected woman-owned small business must be deemed a responsible contractor. Third, the selected woman-owned small business must be the only women-owned small business that can perform the work. Fourth, the award must be made at a fair and reasonable price.

The SBA is hopeful that this new rule will help the federal government achieve its goal of awarding 5% of its contract dollars to women-owned businesses. Women-owned businesses should be aware of this rule, which gives them a new competitive advantage in the federal marketplace and provides new opportunities to grow their business and revenues.

Stephanie Wilson is an attorney Berenzweig Leonard, LLP. She can be reached at SWilson@BerenzweigLaw.com. Sara Almousa is an intern with Berenzweig Leonard, LLP.