Legal Updates

The SBA's Presumed Loss Rule has now been in play for about four and half years, and in a 2016 enforcement action someone went to jail over it.  (Link below to the Memorandum Opinion giving details). As we head into the New Year, it bears remembering some of the regulations that are still in play within the SBA that carry serious consequences.  With that in mind, here is an overview of the...

Ethics and Compliance: Part 2 in a Series by Outlook Law, LLC- Financial Benefits, Sentencing Guidelines, and Pillars   In Part 2 of the Ethics and Compliance Series, the following topics are addressed: (1) the financial benefits of an ethical culture; (2) the sentencing guidelines and mitigation benefits of a strong ethics program-including small organizations; and (3) understanding...

Christine V. Williams December 18, 2017 Advising clients that own a small business with another entity, and I apply this to joint ventures as well, it is important to keep affiliation rules in mind.  I define the small business owner (or the SBA firm) as the one on whom the eligibility depends on to qualify for the U.S. Small Business set-aside contract.  For instance, for 8(a) BD firms...

The Culture of Ethics By Christine V. Williams   As 2018 quickly approaches, many companies are visiting or revisiting their code of conduct and/or business ethics code. Here are a few pointers and look for more coming in the following weeks: • Know who is giving you advice on an ethics and compliance program. Is it a first timer or someone experienced and knowledgeable in the...

A Writ of Certiorari was denied by the U.S. Supreme Court in Rothe v. Department of Defense/SBA.  In short, the U.S. Supreme Court will not hear the Constitutional challenge to the 8(a) statute.  There was no dissenting opinion written disagreeing with the denial, as is sometimes done.  For instance, in the attachment, where Rothe cert was denied on page two, further along there is a...

In 2014, there was a series of recommendations both from the Justice Department itself and the GAO for changes to the processes, policies, and approach taken to whistleblowers and whistleblower claims.   This included recommendations for protecting FBI employees. On September 20, 2017, Senators Grassley and Leahy, from the Senate Judiciary Committee, on which they serve as Chairman and...

The Rothe case was re-scheduled by the U.S. Supreme Court.  Not a lot should be read into this except that it was rescheduled.  The Court may still decide to grant or deny certiorari this session.  It may reschedule again.  Occasionally, when the Court continues (multiple times) to reschedule it can be-purely speculative- that there the Court may be taking a closer look or one of the justices...

Federal Register/Vol. 82, No. 185 Comments due November 27, 2017 The SBA is proposing to fast track a generic voluntary collection of qualitative information as a means to gather customer and stakeholder feedback in an efficient, timely manner, in accordance with the SBA's commitment to improving service delivery. Qualitative feedback is that which provides useful insights on perceptions...

In Crosstown Courier Service, Inc., B-414752 (Sept. 2017), the GAO decided a case, which involved an apparent conflict between the Federal Acquisition Regulations (FAR) and the SBA's regulation on limitation on subcontracting.  In short, this case is important because the GAO recognized the agency's ability to use its own regulations as well as the SBA's regulations when setting the parameters...

It has long been known that the medical industry represents the top False Claim Act (FCA) defendants, and subsequent penalty payees, to the Government.  It is oftentimes that the medical cases lead the way to where Government Contracting cases may follow and, most often, do follow.  In the world of multi-billion dollar recoveries every year by the Department of Justice (DOJ), there is an...