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Weekly Update for Government Contractors and Commercial Businesses – April 2021 | PilieroMazza PLLC

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April 5, 2021
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Weekly Update for Government Contractors and Commercial Businesses – April 2021 | PilieroMazza PLLC
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PilieroMazza Reacts to the Rise in Violence Towards the Asian-American Neighborhood, March 29, 2021
Prior to now 12 months, 3,800 acts of violence had been perpetrated towards the Asian-American group, with a disproportionate variety of these assaults directed at ladies particularly. The PilieroMazza household joins others in elevating our voices to sentence these acts of violence, which diminish us as a nation and violate each human being’s fundamental proper to reside with dignity and respect. Learn extra here.

PilieroMazza Earns #1 Spot for Authorities Contracts Thought Management on JD Supra, April 1, 2021
PilieroMazza attorneys and their thought management have taken the #1 authorities contracting place—for a fourth consecutive 12 months—in JD Supra’s Readers Choice Awards. Cy Alba and Nichole Atallah, companions in PilieroMazza’s Government Contracts and Labor & Employment for Government Contractors follow teams, respectively, had been acknowledged because the Agency’s main authors, incomes a spot amongst JD Supra’s top 10 authors in authorities contracting. “This can be a nice achievement for Cy, Nichole, and PilieroMazza’s Authorities Contracts Group. We’re honored that readers have interaction with and worth our content material as they deal with their enterprise and authorized issues,” mentioned Tony Franco, the Agency’s Managing Associate. Learn extra here.

WEBINAR: Roadmap to Joint Enterprise Agreements: Authorized and Accounting Issues, April 6, 2021, Tony Franco. Learn extra here.

WEBINAR: High Cybersecurity & Information Privateness Initiatives Beneath the Biden Administration, April 13, 2021, Anna Wright and Emily Rouleau. Learn extra here.

WEBINAR: The First 100 Days: Deciphering Key Provisions within the Purchase American Act for Authorities Contractors, April 27, 2021, Jackie Unger and Anna Sullivan. Learn extra here.

COVID-19 Consumer Useful resource Heart: To entry assets for companies navigating the COVID-19 disaster, we invite you to go to PilieroMazza’s “COVID-19 Client Resource Center.” Contact covid19@pilieromazza.com for speedy help.

LITIGATION & DISPUTE RESOLUTION

Whistleblower Retaliation Legal responsibility Beneath the False Claims Act for PPP Mortgage Recipients, March 24, 2021, Camilla Hundley
Earlier this 12 months, my colleague, Matt Feinberg, and I reviewed the False Claims Act (FCA) statistics for 2020. We forecasted that the Paycheck Safety Program (PPP) and different small enterprise mortgage packages initiated by means of the Coronavirus Support, Reduction, and Financial Safety Act would generate a surge in new FCA matter reporting. This month, a former worker of a authorities contracting agency filed a grievance towards the agency beneath the federal FCA anti-retaliation clause and Florida state whistleblower statutes. This lawsuit serves as a reminder for recipients of PPP loans to make sure that they’re correctly utilizing funds. In any other case, recipients danger enforcement beneath the FCA: not solely by the federal authorities and qui tam relators, but additionally beneath its whistleblower provisions. Learn extra here.

Preserving Your PPP from Turning into FCA, March 17, 2021, Jon Williams
Final month, I had the privilege of being a panelist in the course of the Federal Bar Affiliation’s 2021 Qui Tam Convention. Known as “the Oscars for False Claims Act nerds,” this 12 months’s convention included such audio system as Senator Chuck Grassley and targeted on the False Claims Act (FCA) in instances of disaster. The panel I spoke on, titled “Civil Fraud Points Arising from SBA’s CARES Act Packages,” lined the Small Enterprise Administration’s (SBA) Paycheck Safety Program (PPP), FCA legal responsibility dangers small companies could face collaborating within the PPP, and the way small companies can shield towards or keep away from these dangers. Throughout our dialogue, a consultant from the Division of Justice (DOJ) indicated that there are a number of dozen qui tam circumstances at the moment filed associated to the PPP and that a number of settlements have already been introduced. This comes as no shock. Given the unprecedented outlay of cash final 12 months by means of the PPP, enforcement actions had been positive to comply with. And it seems that is just the start. SBA is beginning to ramp up the method by means of which it would decide forgiveness of PPP loans, and that is positive to resume quite a lot of the eligibility questions we grappled with in the beginning of this system. Learn extra here.

PilieroMazza Litigators Win Dismissal for Protection Business Authorities Contractor in Employment Litigation Case, March 16, 2021
PilieroMazza is happy to announce the Agency obtained a full dismissal, with prejudice, of an employment and safety clearance litigation within the U.S. District Court docket for the Jap District of Virginia on behalf of a authorities contractor within the protection business. “This victory highlights the collaborative nature of our follow,” mentioned Matt Feinberg, Chair of PilieroMazza’s Litigation & Dispute Resolution Group and lead counsel on the shopper’s litigation. “Our illustration of this valued shopper concerned attorneys from three of our 4 primary follow teams, combining their particular data on completely different points affecting authorities contractors to earn this necessary win for the shopper. And, extra critically, this litigation exhibits that our shopper acted appropriately and in accordance with the legislation.” Learn extra here.

IRC Agrees to Pay $6.9 Million to Settle Allegations That It Carried out Procurement Fraud
The Division of Justice introduced that the Worldwide Rescue Committee (IRC) has agreed to pay $6.9 million to settle allegations beneath the False Claims Act associated to United States Company for Worldwide Improvement (USAID)-funded programming for beneficiaries affected by the battle in Syria. The settlement—introduced on March 16, 2021—is a part of a civil decision involving the U.S. Lawyer’s Workplace for the District of Columbia, USAID, and the USAID Workplace of Inspector Normal. Learn extra here.

BUSINESS & TRANSACTIONS

5 Fundamentals of the Company Transparency Act: Impacts on Small Companies, March 19, 2021, Laura Sims
On January 1, 2021, Congress enacted the 2021 Nationwide Protection Authorization Act. In an effort to strengthen the struggle towards cash laundering and the funding of terrorist actions, it included broad amendments to the U.S. Anti-Cash Laundering Act, essentially the most important of which was the Corporate Transparency Act (CTA). The CTA will vastly affect the way in which companies are shaped and the way they function, and it’ll require common reporting practices that companies want to arrange for earlier than the CTA takes impact. Beneath are 5 fundamentals of the CTA that small companies want to know now. Learn extra here.

Upcoming Enterprise & Transactions Shows

WEBINAR: Teaming Secrets and techniques of Profitable Authorities Contractors, April 20, 2021, Kathryn Hickey and Katherine Burrows. Learn extra here.

LABOR & EMPLOYMENT

DOL Proclaims Proposed Rulemakings Associated to Tipped Employees
The Division of Labor (DOL) introduced two Notices of Proposed Rulemaking (NPRM) associated to tipped staff that may affect DOL’s “Tip Rules Beneath the Truthful Labor Requirements Act” closing rule printed in December 2020 (2020 Tip closing rule). The efficient date of the 2020 Tip closing rule was delayed till April 30, 2021, to supply further time to contemplate problems with legislation, coverage, and reality.

  • The primary NPRM proposes to slender the circumstances by which DOL can assess civil cash penalties for violations. DOL can also be searching for feedback on whether or not to revise the portion of the 2020 Tip closing rule relating to “managers or supervisors” to higher deal with the truth that some managers and supervisors carry out tipped work. Learn the printed model here.
  • The second NPRM proposes to increase additional the efficient date of three parts of the 2020 Tip closing rule to December 31, 2021. Two of the parts proposed for extension deal with the evaluation of civil cash penalties, and the third portion addresses the applying of the Truthful Labor Requirements Act tip credit score to tipped workers who carry out each tipped and non-tipped duties (i.e., twin jobs). The eight-month extension would supply DOL the chance to judge further details about the questions of legislation, coverage, and reality raised by these parts of the 2020 Tip closing rule. Learn the printed model here.

Learn extra here.

DOL Proclaims Proposed 18-Month Delay to Prevailing Wage Rule
On March 22, 2021, the Division of Labor (DOL) introduced that it has proposed an 18-month delay within the efficient date of a closing rule on calculating prevailing wages of sure immigrants and non-immigrant staff. Printed in January 2021, the ultimate rule impacts employers searching for to make use of international staff on a everlasting or non permanent foundation by means of sure immigrant visas or by means of H-1B, H-1B1, or E-3 non-immigrant visas. The proposed delay would give officers ample time to compute and validate prevailing wage knowledge protecting particular occupations and geographic areas, full obligatory system modifications, and conduct public outreach. This proposed rule follows an preliminary 60-day delay introduced earlier this month. Learn extra here. Learn the printed delay here.

GOVERNMENT CONTRACTS

PPP Eligibility Will increase Beneath American Rescue Plan Act, March 16, 2021, Christine Fries
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (Act). The Act allotted an extra $7.25 billion in Paycheck Safety Program (PPP) funding for small companies. Furthermore, nonprofit entities and digital media corporations are actually allowed to obtain funding. Beneath are key PPP eligibility updates made beneath the Act. Learn extra here.

President Biden Indicators PPP Extension Act of 2021 into Regulation
The White Home introduced that, on March 30, 2021, President Biden signed H.R. 1799, the “PPP Extension Act of 2021,” into legislation. The act extends the Paycheck Safety Program (PPP) utility deadline to Could 31, 2021, and extends the PPP authorization by means of June 30, 2021, to supply the Small Enterprise Administration further time to course of functions obtained by the applying deadline. Learn extra here. Learn President Biden’s remarks on the signing here.

SBA to Improve Lending Restrict for COVID-19 Financial Damage Catastrophe Loans
The Small Enterprise Administration (SBA) introduced that it’s growing the utmost quantity small companies and non-profit organizations can borrow by means of its COVID-19 Financial Damage Catastrophe Mortgage (EIDL) program. Beginning the week of April 6, 2021, SBA is elevating the mortgage restrict for the COVID-19 EIDL program from six months of financial damage with a most mortgage quantity of $150,000 to as much as twenty-four months of financial damage with a most mortgage quantity of $500,000. Learn extra here.

SBA Launches Portal to Start Accepting Shuttered Venue Operators Grant Purposes on April 8
The Small Enterprise Administration (SBA) introduced the launch of a splash web page for the Shuttered Venue Operators Grant (SVOG) application portal in anticipation of opening functions for the long-awaited essential financial aid program on April 8, 2021. The SVOG program was established by the Financial Support to Laborious Hit Small Companies, Nonprofits and Venues Act, which appropriated $15 billion for this system. The American Rescue Plan Act, signed into legislation by President Biden on March 11, 2021, appropriated an extra $1.25 billion, bringing this system funding to a complete of $16.25 billion, with greater than $16 billion allotted for grants. Learn extra here.

SBA Updates PPP Rules to Implement American Rescue Plan Act
The Small Enterprise Administration (SBA) printed an interim closing rule that revises Paycheck Safety Program (PPP) guidelines to include the American Rescue Plan Act’s amendments to the PPP. Moreover, it clarifies the eligibility for first draw PPP loans for candidates which might be assigned a North American Business Classification System code starting with 72 and have a couple of bodily location and clarifies sure payroll price exclusions included within the Financial Support Act. The rule was made efficient March 18, 2021. Learn extra here.

DOD Releases New WOSB Eligibility Verification Procedures
The Division of Protection (DOD) launched a category deviation that gives up to date procedures for contracting officers when verifying eligibility of a contractor for a procurement put aside beneath the Ladies-Owned Small Enterprise (WOSB) Program. Learn extra here.

The VA Receives Supplemental Funding in American Rescue Plan
The Division of Veterans Affairs (VA) introduced that the American Rescue Plan consists of $17 billion to help the VA in responding to the pandemic. The funding for the VA consists of:

  • $100 million to modernize the VA provide chain system and transition to Protection Medical Logistics Customary Assist;
  • $14.5 billion for healthcare, together with info expertise and services; and
  • $1 billion of debt forgiveness for copayments for veterans’ care and prescriptions supplied from April 6, 2020, by means of September 30, 2021.

Learn extra here.

DOD: Closing Contracts, Returning {Dollars}
The Division of Protection (DOD) supplied an replace on its new Contract Lifecycle Administration Heart, which focuses on closing and terminating overaged contracts. There are roughly 579,000 overaged contracts throughout DOD, and whereas sometimes benign, they carry potential pointless or preventable authorities dangers. The potential options characterize hundreds of thousands of {dollars} that may be returned to the army providers. Closing these contracts is a precedence for the Protection Contract Administration Company, which administers tens-of-thousands of the overaged contracts on behalf of DOD prospects. Learn extra here.

Vulnerability Scanning Necessities for Containers
The Federal Threat and Authorization Administration Program (FedRAMP) introduced the discharge of a Vulnerability Scanning Requirements for Containers doc. The doc addresses FedRAMP compliance pertaining to the processes, structure, and safety issues particular to vulnerability scanning for cloud methods utilizing container expertise. Present scanning necessities are outlined within the FedRAMP Continuous Monitoring Strategy Guide and FedRAMP Vulnerability Scanning Requirements. The brand new doc’s necessities are thought-about supplemental and are relevant for all methods implementing container applied sciences. Learn extra here.

Government Order to Handle Cloud Safety By means of Procurement
Nextgov reported that the White Home plans to double down on industrial cloud expertise by means of an upcoming government order in response to the SolarWinds hack. Learn extra here.

Replace to Administrative Course of for Unfavorable Safety Clearance Eligibility Hearings and Appeals
The Division of Protection (DOD) printed a memorandum to streamline administrative processes for DOD contractor workers searching for to occupy or occupying delicate positions. To simplify, centralize, and unify the established administrative processes for unfavorable safety clearance eligibility determinations for DOD civilians, army members, and contractor workers, together with contractor worker unfavorable Delicate Compartment Data determinations, all hearings, appeals, and closing denials and revocations of safety clearance eligibility might be carried out by the Protection Workplace of Hearings and Appeals with the established administrative due course of procedures. The coverage needs to be efficient no later than September 30, 2022. Learn extra here. Further reporting from Federal Instances is offered here.

Upcoming Authorities Contracts Shows

WEBINAR: Roadmap to Joint Enterprise Agreements: Authorized and Accounting Issues, April 6, 2021, Tony Franco. Learn extra here.

WEBINAR: CIO-SP4: Is Your Enterprise Outfitted to Compete? April 8, 2021, Cy Alba and Meghan Leemon. Learn extra here.

WEBINAR: High Cybersecurity & Information Privateness Initiatives Beneath the Biden Administration, April 13, 2021, Anna Wright and Emily Rouleau. Learn extra here.

WEBINAR: Teaming Secrets and techniques of Profitable Authorities Contractors, April 20, 2021, Kathryn Hickey and Katherine Burrows. Learn extra here.

WEBINAR: ChallengeHER: Joint Ventures and the WOSB Program, April 22, 2021, Meghan Leemon. Learn extra here.

WEBINAR: Navigation the FAR/DFARS: The Most Complicated and Little Recognized Clauses, April 26, 2021, Tim Valley and Christine Fries. Learn extra here.

WEBINAR: The First 100 Days: Deciphering Key Provisions within the Purchase American Act for Authorities Contractors, April 27, 2021, Jackie Unger and Anna Sullivan. Learn extra here.



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