Posts in Government Contracts
Deep in the Heart of Texas: Injunction Bars Federal Contractor Minimum Wage

Last week a Texas judge rejected President Biden’s Executive Order that requires federal contractors to pay a minimum wage when they are working on or in connection with a covered federal contract. This is the latest installment in the ongoing battle over the President’s use of Executive Orders to direct federal contractors to adopt workplace rules under the federal Procurement Act.

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One of These Things is Not Like the Other – Confusion Over the Two Different Contractor Minimum Wage Executive Orders Clauses With the Same FAR Section Number

We have two different Contractor Minimum Wage Executive Orders. One requires a $12.15 minimum wage. The other requires a $16.20 an hour minimum wage. But the curious thing is they both use the same FAR section clause number — FAR 52.225-55. Confused.? So am I.

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Trees Don’t Grow to the Sky: New Service Contract Act Health and Welfare Levels Are Finally Set

The new Service Contract Act (“SCA”) health and welfare (“H&W”) rates are out and made effective to new solicitations and contracts on June 27, 2023. Except for in Hawaii, the new H&W rates are $4.57 an hour if the sick leave executive order applies, and $4.98 an hour if it doesn’t.

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Working for the Man Doesn’t Seem to Be Paying Off – Federal Contractors Don’t Prove to Be Good Investments

Government contractors, at least as an investment option, continue to underperform the S&P 5000 average. The lack luster 2023 year to date returns (and downright losses) come on the heals of a miserable 2022 performance. If you are working for a government contractor and invested heavily in its stock, perhaps you should be wishing for a recession to revive your lagging performnce.

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A Look Behind the Curtain: Recent Bid Protest Decision Offers Insight into Corrective Actions

Conventional wisdom holds that bid protests are an uphill battle. It can be tough to win them. And sometimes when you win, you still lose because the contract’s still awarded to your competitor. A recent bid protest decision illustrates how a successful protest prompted the agency to appoint a new evaluation team that changed the outcome.

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You're Not Too Big Unless You're Asked if You're Too Big: Recertification of Small Business Status

Contractors who are experienced in the world of multiple award contracts likely are familiar with how the small business regulations operate under those contract vehicles. However, there are some wrinkles. Small businesses that are considering whether to dive into this world should learn more about the maze of small business regulations so they can anticipate the potential pitfalls that could come with success.

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Facing a Size Protest? SBA Might Want Your Tax Returns

Yesterday’s tax filing deadline brought to mind a recent Small Business Administration decision in which a contractor lost out because it didn’t supply its tax returns. If SBA knocks on your door because a protest has been filed, don’t leave things to chance. Respond in a timely and complete manner—you want to make it easy for the SBA to see things your way.

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Back to Basics: SCA Price Adjustments on Cost Reimbursement and Hybrid Contracts

Service Contract Act (“SCA“) covered fixed priced contracts generally have one of two FAR clauses for price adjustments — either FAR 52.222-43 or -44. But there are different price adjustment clauses and provisions for cost reimbursement contracts. Where the SCA provisions and the standard cost reimbursement clauses overlap is in hybrid contracting, involving both fixed price and cost reimbursement CLINS. In those circumstances the overlapping price adjustment issues can be murky.

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Don’t Look Now -- the Government Contractor ETF is Gone.

It looks likes the sponsor of the government contractor FEDX ETF I like to blog periodically about has pulled the plug. As far as I can tell the ETF is no more. I speculate it had insufficient assets to be profitable for its sponsor. What this means about Government contracting I can’t discern, except to say that as an investment idea it didn’t catch on.

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Arbitrability of Service Contract Act or Davis-Bacon Act Job Classification Disputes – Don’t Go There!

Some disputes are not meant to be litigated in court or arbitrated. One example is job classification disputes under the Service Contract Act (“SCA”) or the Davis-Bacon Act (“ DBA”). Such disputes are committed to the exclusive jurisdiction of the U.S. Department of Labor. Only DOL is supposed to decide them and then provide for administrative appeals. Don’t let your union drag you into an arbitration of job classification disputes on service and construction US government contracts.

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Help Is on the Way – Polish Your Resume to Become a Procuring Agency Labor Advisor

Just out — a White House memorandum directing all federal contracting agencies to hire labor advisors to help coordinate with DOL and comply with the laws regarding labor and employment which pertain to federal procurements. This includes especially the Service Contract Act and the Davis-Bacon Act, but also many other labor requirements and Executive Orders.

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