TINA and CAS Thresholds to Increase Significantly Effective July 1, 2018Effective July 1, 2018, the threshold under the Truthful Cost or Pricing Data Act (still commonly referred to by its former name, the Truth in Negotiations Act (or TINA)) for contractors to submit to the government certified “cost or pricing data” increases significantly from $750,000 to $2 million. This change—which was authorized by class deviations pending formal rulemaking and publication in the Federal Acquisition Regulation (or FAR), and which implements Section 811 of the Fiscal Year 2018 National Defense Authorization Act—applies to both civilian and Department of Defense agencies.

The $2 million certified “cost or pricing data” threshold generally applies to: (1) negotiated prime contracts entered into on or after July 1, 2018; (2) subcontracts entered into on or after July 1, 2018, under prime contracts where the prime contractor is required to furnish such data; and (3) the modification of any prime contract or subcontract on or after July 1, 2018.  Additionally, for prime contracts “entered into on or before June 30, 2018,” prime contractors can request, without “consideration,” that the $2 million threshold be applied (see 10 U.S.C. § 2306a(6)).

Further, as the class deviations explain, because the cost accounting standards (CAS) threshold is tied to the certified “cost or pricing data” threshold, the CAS threshold will also increase to $2 million effective July 1, 2018.

If you have any questions about the foregoing topics, or about any other related issues, please do not hesitate to contact Aron Beezley.

SBA “Contemplates” Consolidating 8(a) and All Small Mentor-Protégé ProgramsThe U.S. Small Business Administration (SBA) recently issued a notice in the Federal Register stating that it “is contemplating making substantive changes to the regulations” governing the 8(a) Business Development program, and that it “requests comments and input on how best to reduce unnecessary or excessive regulatory burdens” on the program.

Of particular importance, the SBA states that the “planned rulemaking contemplates consolidating the All Small Mentor Protégé Program and the 8(a) Mentor Protégé Program into one program and possibly eliminating SBA’s role in approving joint venture agreements for 8(a) competitive contracts.”

The SBA further states that it is contemplating an “amendment” to its regulations that “would allow mentors participating in SBA’s mentor protégé program to have more than three protégés at one time.” The SBA goes on to state, however, that it “is concerned that allowing a large business mentor to have additional protégé firms at one time could permit them to unduly benefit from small business contracts, through joint ventures with their protégé firms, which they would otherwise not be eligible for.” Nevertheless, the SBA “is seeking comments on whether lifting the current regulatory limit would benefit small businesses and further the programs’ purpose.”

If you have any questions about the proposed changes to the SBA’s regulations, or about any other related issues, please do not hesitate to contact Aron Beezley.

Upcoming Event – Government Contracting 101: Practical Advice for CompaniesBradley’s Construction, Government Contracts and Government Enforcement groups are pleased to present “Government Contracting 101: Practical Advice for Companies” as part of the latest Huntsville/Madison County Chamber of Commerce Seminar Series.

This onsite event will discuss an overview of practical advice for common issues facing government contractors presented by a host of talented guest speakers and Bradley attorneys.

When:  Thursday, June 7, 2018
11:30 am – Lunch
12:30 pm – Government Enforcement Actions – Priorities and Trends in the New Administration
1:30 pm – Legal Strategies for Protecting Your Business Capital
2:30 pm – Bid Protests
3:30 pm – Positioning Your Company for Sale – Strategies for Exit Events
4:30 pm – Cocktail Hour

Where:  Embassy Suites by Hilton Huntsville, Big Spring Ballroom CD Conference Rooms, 800 Monroe Street, Huntsville, AL 35801

What:  In the highly regulated world of government contracting, companies face a complex and often shifting business landscape. Join us for a half-day seminar offering practical advice for common issues facing government contractors. This seminar is designed for all companies whether your business is a new start-up or established entity.

Speakers:

JAY TOWN, United States Attorney for the Northern District of Alabama
JEFF SHOWALTER, CDO and General Counsel, JHNA
MARC MARLIN, Managing Director, KippsDeSanto & Co.
KIMBERLY B. MARTIN, Partner, Huntsville
A. LEE BENTLEY III, Partner, Tampa
JACK W. SELDEN, Partner, Birmingham
HAROLD D. MOOTY III, Partner, Huntsville
DANIEL CULPEPPER, Attorney, Huntsville
DAVID W. HOLT, Partner, Huntsville
ARON C. BEEZLEY, Partner, Washington, D.C.
JASON P. MEHTA, Partner, Tampa
DANIEL KAUFMANN, Partner, Huntsville
GEORGE A. SMITH II, Partner, Huntsville
DAVID VANCE LUCAS, Partner, Huntsville

To register for the event, please RSVP by June 6th, 2018.

We look forward to seeing you there!