Friday Flash 01/24/2025

The Government Procurement Efficiency List, Part II

Last week’s FAR & Beyond blog launched the Coalition’s Government Procurement Efficiency List (GPEL) for the new federal market. The GPEL will identify opportunities to improve the efficiency and effectiveness of the procurement system to deliver cost effective, best value solutions to meet customer agency mission requirements. The GPEL will be shared with key stakeholders across government. The goal for the GPEL is to drive common sense procurement policy reform and operational optimization that delivers value and savings for the American people.

We look forward to followers of the FAR & Beyond blog providing their recommendations for the GPEL. Next week the Coalition will be reaching out to each of our industry committees seeking recommendations for the GPEL. There will be cross-cutting efficiency opportunities that will positively impact customer agencies and contractors across government. At the same time, there will be more specific, industry unique procurement efficiency opportunities that our individual industry committees will identify.

In February and March, the Coalition will be collecting, organizing, and refining the GPEL recommendations. Once the GPEL has been finalized, it will be published. It is important to note that over the years, a host of recommendations have been developed to streamline Federal procurement, reduce barriers to entry, and increase access to the commercial market. To kick start the GPEL, here are 10 efficiency opportunities for consideration:

Clarify the operating authority for the General Services Administration’s (GSA) Federal Supply Schedules (FSS) to reflect the delivery of “best value” commercial products, services, and solutions to meet customer agency needs. This efficiency opportunity will empower GSA to further streamline processes/procedures and create flexibly structured contracts that reflect commercial best practices. This measure alone has the potential of driving robust efficiencies across what is the largest shared services contracting program in government.
Reorganize the Federal Acquisition Service (FAS) acquisition workforce supporting the FSS program. This efficiency opportunity will eliminate structural stovepipes that have hindered accountability, consistency, flexibility, and workload optimization.
Put “commercial” back into commercial item contracting. Streamlining procurement procedures, reducing regulatory burdens, and eliminating unnecessary clauses and requirements to better reflect commercial practice will have a huge multiplying impact that will increase competition and increase access to the commercial industrial base.
Provide greater flexibility in structuring cloud services contracts to ensure commercial payment terms can be leveraged to increase efficiency and save taxpayer funds.
Embrace dynamic pricing models that leverage competition from the commercial market. There simply needs to be greater flexibility in pricing to meet customer demand across the federal market. Static pricing ultimately hinders competition and reduces value for customer agencies.
Institute a commercial ordering/logistics system at the Department of Veterans Affairs for medical supplies, to take advantage of negotiated pricing under established contracts and reduce patient safety risk due to gray market purchasing and order errors.
Rescind the GSA FAS Policy and Procedure Memorandum related to Evaluation of FSS Program Pricing (2021-05) and the non-commercial, archaic Price Reduction Clause, to allow more commercial firms to provide more commercial solutions to the Federal Government.
Rescind proposed rules removing statutorily granted contracting officer discretion when ordering under multiple-award contacts by imposing market research, documentation and coordinating mandates, and finalize the proposed Federal Acquisition Regulation (FAR) rule exempting these business judgment decisions from protest.
Harmonize cybersecurity reporting requirements so that government contractors are not beholden to different cybersecurity reporting requirements and timelines depending on the federal agency that awarded the contract.
Comprehensively review and repeal unnecessary FAR clauses, such as Reporting Executive Compensation and First-Tier Subcontract Awards (52.204-10), Encouraging Contractor Policies to Ban Text Messaging While Driving (52.223-18), Printed or Copied on Doubled-Sided Postconsumer Fiber Content Paper (52.204-4), etc.

Procurement is the great enabler leveraging the private sector to support every aspect of government operations. These efficiency opportunities have great potential to reduce total acquisition costs and improve performance for taxpayers. Implementing these reforms will increase competition and access to the commercial market, including access to non-traditional firms seeking entry to the federal market. Today marks the beginning of the GPEL conversation. Please share your efficiency opportunities for the GPEL with Greg Waldron at gwaldron@thecgp.org.

We look forward to working with the Administration towards common sense procurement that delivers best value mission support for the American people.

The Merit-Based Opportunity Executive Order and Federal Contracts

On January 20, the President signed an executive order (EO) “terminating diversity, equity, and inclusion (DEI) in the Federal workforce, and in Federal contracting and spending.” The EO requires Federal agencies to eliminate “all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.” Furthermore, all agencies are “to enforce longstanding civil-rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.”

The EO directs the Office of Management and Budget (OMB) to streamline the Federal contracting process to “enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with our civil rights laws.” It also revokes EO 11246 contracting criteria mandating affirmative action.

In addition, the EO requires the Office of Federal Contract Compliance Programs to immediately cease:

Promoting “diversity”;
Holding Federal contractors and subcontractors responsible for taking “affirmative action”; and
Allowing or encouraging Federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.

All contract awards will require contractors to certify that it complies with all Federal anti-discrimination laws and is not operating any programs promoting DEI.

New Leadership at GSA

Federal News Network reports that there is already new leadership in place at the General Services Administration (GSA). Stephen Ehikian has been named the Acting GSA Administrator and Deputy Administrator. Ehikian joins GSA from the private sector, most recently as the Vice President of AI Products at Salesforce. According to a GSA press release, Ehikian “will accelerate the adoption of technology throughout government, drive maximum efficiency in government procurement for the benefit of all taxpayers, and will work closely with the DOGE team to do so.” In an email obtained by Federal News Network, Ehikian stated that GSA “is recommitting itself to its founding purpose: ensure governmentwide efficiency and maximizing value for the American taxpayer.” To accomplish this, GSA will adhere to five principles.

Building a culture of performance and accountability across the Federal Government and contracting corps;
Eliminating every dollar of waste, fraud, and abuse across the Federal budget and in operations;
Embracing best-in-class technologies to accelerate digital transformation and modernize IT infrastructure;
Committing to the principles of competition that make America’s economy the most dynamic in the world, including merit-based and impartial awarding of government contracts; and
Championing Made in America policies that support American jobs and workers.

Additionally, Ehkian outlined how GSA will align with the President’s priorities, such as:

Relocating agency components outside of Washington D.C. to “distribute economic opportunity”;
Returning employees back to the office;
Eliminating equity and climate change mandates for GSA contractors;
Accelerating the disposition of underutilized and inefficient buildings; and
Improving transparency and accountability within GSA and strengthening governmentwide partnerships including with our contractors.

Other GSA leadership appointments include:

Josh Gruenbaum, Commissioner of the Federal Acquisition Service
Mike Peters, Commissioner of the Public Building Service
Thomas Shedd, Director of the Technology Transformation Service and Deputy FAS Commissioner
Larry Allen, Director of the Office of Governmentwide Policy

President Orders Federal Hiring Freeze and Return to Office

President Trump took several executive actions on his first day in office, including a Federal hiring freeze and mandate for Federal employees to return to in-person work.

The hiring freeze prohibits agencies from filling vacant positions or creating new roles, except in essential areas like national security or public safety. The Office of Personnel Management (OPM) and Office of Management and Budget (OMB) are directed to collaborate with the Department of Government Efficiency (DOGE) to create a plan for reducing the Federal workforce “through efficiency improvements and attrition.” The freeze remains in place until the proposal to reduce the workforce (except for the Internal Revenue Service) is submitted. This move echoes a similar freeze from President Trump’s first term in 2017. The Federal Government currently employs around 2.2 million civil servants with over 80 percent of the workforce located outside Washington, D.C. Federal unions and some lawmakers argue that the freeze would hinder agencies’ ability to deliver essential services, stating that current budget restrictions have already caused operational challenges.

In addition to the hiring freeze, President Trump also signed a Presidential Memorandum, Return to In-Person Work, requiring that “Heads of all departments and agencies in the executive branch of Government shall, as soon as practicable, take all necessary steps to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis…” The EO does allow for each agency to make exceptions.

This shift toward more in-person work followed the Biden Administration’s April 2023 directive for agencies to reduce telework after the COVID-19 pandemic. By Spring 2024, many agencies reported that at least 50 percent of telework-eligible employees were working on-site. While the EO allows some discretionary exemptions, the mandate has been met with resistance from unions and lawmakers. Challenges with physical office space have also been cited, as some agencies have scaled back on office buildings over the past few years.

OPM Issues Return to Office Guidance for Federal Agencies

On January 22, the Office of Personnel Management (OPM) issued a memo providing guidance for agencies on the Federal workforce’s return to office (RTO) plan. The OPM memo implements the Presidential Memorandum, Return to In-Person Work. Agency heads must revise their telework policies by 5:00 PM (ET) on January 24 to “state that eligible employees must work full time at their respective duty stations unless excused due to a disability, qualifying medical condition, or other compelling reason certified by the agency head and the employee’s supervisor.” Each agency must assign a Telework Managing Officer who will be responsible for complying with RTO guidance. Finally, agency heads are directed to report to OPM on when they expect to be in full compliance with this new telework policy. The memo provides a 30-day target date for implementation.

VA Exempts Healthcare Workers from Hiring Freeze

On Thursday, January 23, the Acting Secretary of the U.S. Department of Veterans Affairs (VA) announced exemptions to the Federal hiring freeze announced on January 20th via Presidential Executive Order (EO). According to the VA, “[t]hese exemptions clarify the department’s ability to continue filling essential positions that provide healthcare and other vital services to Veterans and VA beneficiaries.” Certain healthcare positions with the Veterans Health Administration (VHA) are automatically exempt. Examples include physicians, nurses, pharmacists, psychologists, medical officers and other healthcare professionals. Exemptions for positions that support Veterans Benefits may also be granted upon request by the Office of Personnel Management. The VA’s memo and list of exempt healthcare positions is posted here.

President Establishes Department of Government Efficiency

Nextgov reports that on President Trump’s first day in office, he signed an EO establishing the Department of Government Efficiency (DOGE). The United States Digital Service, which was established in 2013 to assist agency tech efforts, has been renamed the United States DOGE Service (USDS), operating under the same acronym. The USDS is tasked with “modernizing Federal technology and software to maximize governmental efficiency and productivity,” and will be housed within the Executive Office of the President. Once established, the USDS Administrator will report to the White House Chief of Staff.

The EO tasks each agency with creating an internal DOGE team comprised of at least four employees who will collaborate and report to the USDS Administrator. These teams will “typically” consist of a lead, engineer, human resources specialist, and attorney. The EO also establishes the DOGE Service Temporary Organization within the USDS that will “advance the DOGE agenda of the President” through July 4, 2026, the organization’s planned end date.

The EO directs the USDS to “commence a Software Modernization Initiative to improve the quality and efficiency of governmentwide software, network infrastructure, and information technology (IT) systems.” Previously stated goals of the DOGE, including reducing government headcount and cutting spending, were not mentioned in the EO.

President Revokes AI Executive Order

Nextgov reports that on January 20, President Trump repealed the Biden Administration’s EO on safe, secure, and trustworthy artificial intelligence (AI). The revoked EO aimed to lower the potential risks that AI poses to national security, the economy, and the public while also establishing guardrails for the use of AI within the Federal Government. Since the signing of the EO in 2023, agencies have established Chief AI Officers and issued AI-use compliance plans. The President’s plans for AI policies and regulation are expected to be announced.

DoD IG Flags Issues with CMMC’s C3PAO Authorization Process

On January 10, the Department of Defense (DoD) Inspector General (IG) released an audit of the Cybersecurity Maturity Model Certification 2.0 (CMMC) Program to ensure “the process for authorizing third party organizations to perform CMMC 2.0 assessments was effectively implemented.” These authorizing third-party organizations are responsible for Level 2 assessments within the CMMC Program and are referred to as Certified Third-Party Assessor Organizations (C3PAOs). The assessment of C3PAO’s was conducted by The Cyber AB, an organization established to serve as the “official accreditation body of the CMMC ecosystem.” The IG investigated 11 C3PAO assessments and found that the Cyber AB authorized assessors without ensuring that the C3PAO met all 12 requirements. Specifically, the IG found that the Cyber AB authorized:

Two C3PAOs without ensuring that a signed C3PAO Agreement and Code of Professional Conduct was maintained for those C3PAOs;
Four C3PAOs without verifying that their quality control leads were certified; and
All of the C3PAOs without adequately verifying that both a certified assessor and certified quality control lead were on staff or under contract as part of the assessment team.

The IG stated that these errors occurred because there was not a quality assurance process in place to verify the authorizations. The IG made ten recommendations. Most importantly, the IG recommended that the DoD Chief Information Officer (CIO) “develop and implement a quality assurance process” for the Cyber AB’s assessment of C3PAOs.

GSA Finalizes Agreement to Enhance Federal IT Acquisition

GSA announced that on January 15, Microsoft and the IT Vendor Management Office (ITVMO) finalized an agreement under the Governmentwide Microsoft Acquisition Strategy (GMAS). GSA calls the agreement “a significant milestone in the Federal Government’s effort to streamline IT acquisition processes and strengthen cybersecurity standards across Federal Government agencies.”

The GMAS initiative brings together 24 agency Chief Financial Officers “to discuss standard terms and conditions and cost reduction strategies available in government transactions for software or services to ensure a unified approach for agencies.”

Key elements of the GMAS initiative include:

Establishing and improving standardized terms and conditions through governmentwide engagement to best align with the government’s mission;
Enhanced cybersecurity measures addressing critical risks in government IT systems; and
Commitments to develop enhanced governmentwide support and education capabilities.

ITVMO and Microsoft will hold a series of workshops for agencies focused on cost management, governance, collaboration, and more. ITVMO will also provide additional resources and support for agencies to help them maximize the benefits of the agreement.

Introducing the Coalition’s New Member Referral Program

The Coalition for Government Procurement is excited to announce its new Member Referral Program!

For each new member your organization refers, and then joins the Coalition, you’ll receive a $250 discount toward registration for either the Spring or Fall Training Conference. There’s no limit to how many discounts you can earn!

Start referring today to enjoy the rewards while helping expand the Coalition’s membership base and advancing our mission of promoting common-sense procurement.

To make a referral or if you have questions about the program, please contact Heather Tarpley, Vice President of Business Development & Sales, at HTarpley@thecgp.org.

Thank you for being a valued member of the Coalition. Your support is key to our success!

Legal Corner: President Trump Ends Affirmative Action Requirements for Government Contractors

The Legal Corner provides the procurement community with an opportunity to share insights and comments on relevant legal issues of the day. The comments herein do not necessarily reflect the views of The Coalition for Government Procurement.

Authored by Jeremy D. Burkhart, Holland & Knight

President Donald Trump has eliminated the requirement for federal contractors to maintain affirmative action programs. His order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” (the Order) revokes Executive Order (EO) 11246 (Equal Employment Opportunity), which was signed by President Lyndon Johnson in 1965.

This Holland & Knight alert details the Order and its impact on government contractors and grant recipients.

Background

In 1941, President Franklin Roosevelt signed EO 8802, outlawing discrimination based on race, color, creed and national origin in the federal government and defense industries. In 1943, President Roosevelt extended the coverage of EO 8802 by making it applicable to all government contractors. In 1953, President Dwight Eisenhower issued EO 10479 to require federal agencies “to include in their contracts a provision obligating the government contractor not to discriminate against any employee or applicant for employment because of race, creed, color, or national origin and obligating the government contractor to include a similar provision in all subcontracts.” The policy of nondiscrimination implemented by Presidents Roosevelt and Eisenhower was changed in 1965 by President Lyndon Johnson, who issued EO 11246, requiring contractors to “take affirmative action.” On July 21, 2014, President Barack Obama signed EO 13672, amending EO 11246 to include sexual orientation and gender identity as protected classes that had to be addressed in contractors’ affirmative action policies and statements.

Under EO 12086 in 1978, President Jimmy Carter directed that enforcement of affirmative action obligations be overseen by the Office of Federal Contract Compliance Programs (OFCCP), a special office within the U.S. Department of Labor. Since then, the OFCCP has conducted compliance evaluations and investigations of federal contractors’ and subcontractors’ personnel policies and procedures. In addition to responding to specific complaints of alleged discrimination and recommending enforcement actions to the Labor Department, the OFCCP annually audits federal supply and service contractors. On Nov. 20, 2024, it published its annual Corporate Scheduling Announcement List (CSAL), identifying 2,000 federal supply and service contractors and subcontractors for compliance reviews.

Affirmative Action requirements are codified in 41 C.F.R. 60-1 and 60-2. Pursuant to these regulations, federal contractors and subcontractors are required to take “affirmative action” to “recruit and advance” qualified minorities and women. A contractor’s affirmative action procedures must be incorporated into the company’s written personnel policies and updated annually, and a contractor is charged with implementing these policies through an affirmative action program (AAP). Some of the requirements of an AAP include comparing the utilization of women and minorities to their availability, setting placement goals if women or minorities are underutilized, assessing recruitment and outreach efforts, and developing and executing action-oriented programs to address identified problems. If women and minorities are not employed at a rate “to be expected given their availability in the relevant labor pool,” then the contractor must take affirmative steps to remedy this underutilization. A contractor’s noncompliance with its affirmative action obligations can result in the OFCCP taking enforcement actions against the company.

The enforcement of Affirmative Action requirements has been the subject of recent scrutiny. In 2023, the U.S. Supreme Court found that college admissions policies using race or diversity as a factor violate the Equal Protection Clause of the 14th Amendment of the U.S. Constitution.¹ In fall 2024, the U.S. District Court for the Southern District of Texas held that OFCCP enforcement proceedings before a Labor Department administrative law judge violate the “take care” clause of Article II of the Constitution.²

The Order and Impact on Government Contractors

President Trump’s new Order revokes EOs 11246 and 13672 and their implementing regulations, as well as several other initiatives that were designed to promote diversity and inclusion. For government contractors and grant recipients, the following parts of the Order are particularly important:

“Federal contractors and subcontractors shall not consider race, color, sex, sexual preference, religion, or national origin in ways that violate the Nation’s civil rights laws.”
Contractors and grant recipients will be required to agree that they will comply “in all respects with all applicable Federal anti-discrimination laws” as a condition of all future contracts and grant awards.
Contractors and grant recipients will be required to certify that they “do[] not operate any programs promoting [diversity, equity, and inclusion] DEI that violate any applicable Federal anti-discrimination laws.”
OFCCP is now prohibited from enforcing affirmative action, promoting diversity or “allow[] or encourage[] Federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”
The Order directs all executive departments and agencies “to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements,” and “to enforce our longstanding civil-rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.”
The Order further directs the director of the Office of Management and Budget (OMB) to “[e]xcise references to DEI and [diversity, equity, inclusion, and accessibility] DEIA principles, under whatever name they may appear, from Federal acquisition, contracting, grants, and financial assistance procedures to streamline those procedures, improve speed and efficiency, lower costs, and comply with civil-rights laws” and to terminate all “diversity,” “equity,” “equitable decision-making,” “equitable deployment of financial and technical assistance” and “advancing equity” requirements, programs and activities.
Notably, the Order states that it “does not apply to lawful Federal or private-sector employment and contracting preferences for veterans of the U.S. armed forces or [blind] persons protected by the Randolph-Sheppard Act, 20 U.S.C. 107 et seq.”

The Order also directs certain officials to coordinate in order to prepare “recommendations for enforcing Federal civil-rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.”

Next Steps for Federal Contractors

The Order provides contractors and subcontractors 90 days to eliminate their affirmative action programs to the extent they are inconsistent with the Order’s requirements. Starting April 21, 2025, contractors “shall not consider race, color, sex, sexual preference, religion, or national origin in ways that violate the Nation’s civil rights laws.” Furthermore, contractors, subcontractors and grant recipients are prohibited from maintaining any DEI programs.

Companies who wish to do business with the federal government should take immediate steps to review their affirmative action and DEI programs to ensure compliance with the new Order. When deciding on policies and hiring practices, companies should follow the Order’s directive to “not consider race, color, sex, sexual preference, religion, or national origin.”
If a contractor was previously identified on the CSAL as being subject to an annual compliance review, that contractor should ask for guidance from OFCCP to verify whether such review will still take place.
If contractors or grant recipients have personnel filling roles such as “Diversity Officer,” careful attention should be given to the authorities and responsibilities of these positions.
Contractors and grant recipients should review their internal policies and procedures to identify potential violations of the new directives.

It is important that contractors ensure compliance with this Order and the pending change in regulations. For questions or further guidance, please contact the author.

Notes

¹ Students for Fair Admissions, Inc. v. Harvard University, 600 U.S. 181 (2023).

² ABM Industry Groups, LLC v. U.S. Department of Labor, Case No. H-24-3353, 2024 WL 4642962 (S.D. Tex. Oct. 30, 2024).

Healthcare Spotlight: VA Secretary Nominee Shares Plans for Department

Federal News Network reported on the confirmation hearing for the Secretary of Veterans Affairs (VA). Former Rep. Greg Collins (R-GA), who is the President’s nominee, shared some of his plans for the department if confirmed during the Senate VA Committee hearing on Tuesday.

Collins supports expanding veteran access to community care outside of VA medical facilities. The 2018 MISSION Act expanded access to non-VA healthcare options for veterans. Collins stated that this growth would continue under his leadership. He added that the VA’s medical facilities would “remain as a backup option.” The VA’s community care spending increased from $8 billion in 2014 to $31 billion in 2024. When asked about the $6.6 billion budget shortfall that the VA is expected to face at the end of fiscal year 2025, Collins said that “the VA is not going to balance budgets on the back of veterans benefits.” He also plans to ensure that the VA’s Office of Legislative Affairs works with lawmakers to ensure that veterans have access to healthcare and benefits.

Collins is also looking to expedite the VA’s timeline for resuming deployment of its Electronic Health Record (EHR) system. The rollout is currently set to resume in mid-2026 with pre-deployment work to begin later this year. Collins expressed his frustration with EHR delays. If confirmed, he will ask members of his staff to immediately examine the timeline and issues with the system.

View from Main Street: SBA’s December 2024 Final Rule Highlights

On December 17, 2024, the Small Business Administration (SBA) issued a final rule addressing multiple small business contracting programs, including HUBZone, 8(a), size, recertification, and joint ventures. 89 FR 102448. Most of the rule is effective January 16, 2025, with an exception involving recertification for mergers and acquisitions involving large businesses. Here are some highlights:

Minority Owner Protections

The final rule addresses situations where minority owner consent can be required to take certain actions, without jeopardizing the size, 8(a), Service-Disabled Veteran-Owned (SDVO), or Women-Owned Small Business (WOSB) status of the concern. Minority owner consent can be required for adding a new equity stakeholder or increasing the investment amount of an equity stakeholder, dissolution of the company, sale of the company or all assets of the company, the merger of the company, bankruptcy, amendment of the company’s corporate governance documents to remove the minority stakeholder’s authority to block these actions, or any other action intended to protect the investment of the minority owner, and not impede the majority owner’s ability to control the concern’s operations.

Joint Ventures

SBA is clarifying that a joint venture partner that performs 40 percent of the work cannot be found to be unduly reliant on its joint venture partner under the ostensible subcontractor rule.

In light of a great deal if litigation concerning evaluation of past performance and experience in the context of an offer from a mentor protégé joint venture, SBA is clarifying that:

A procuring agency has discretion whether to require a protégé or lead small business member of a joint venture to demonstrate some level of past performance and/or experience;

A procuring agency may rely solely on the past performance and experience of the mentor or non-similarly situated joint venture partner;

Where a procuring agency requires some level of past performance and/or experience of the protégé or lead small business firm, the procuring agency cannot require that firm to individually meet all the same evaluation criteria as that required of other offerors generally; and

Successful performance by the protégé or lead small business firm on the contracts that it identifies shall be rated equivalently to successful performance by the mentor or non-similarly situated partner to the joint venture or any other offeror.

Annual Receipts and Value-Added Technology Resellers

SBA had proposed that it may look beyond a firm’s tax forms when calculating annual receipts, apparently because of confusion over how value-added technology resellers report income for tax purposes. In response to comments, SBA agrees that it will use tax forms and it will not include revenue in calculating size that can be legally excluded for tax purposes. Of course, SBA can look beyond tax forms if there is suspected fraud.

HUBZone

A HUBZone small business must have its principal office in a HUBZone, and 35% of its employees must reside in a HUBZone. A firm’s principal office is the location where the greatest number of its employees work. SBA decided to keep the number of hours that an individual must work to qualify as a HUBZone employee at 40 hours per month but imposed a general requirement of 10 hours per week. An employee must also perform legitimate work for the concern. SBA decided not to create a separate standard for concerns where all employees work remotely, meaning that if there is not a single location where a greater number of a concern’s employees work, an applicant cannot establish that its principal office is in a HUBZone unless all of its employees work in HUBZones. SBA decided to allow firms to count up to four employees as “legacy” HUBZone employee (employees that used to live in a HUBZone but no longer do), as long as the firm employs at least one current HUBZone resident. HUBZone firms must be eligible at the time of offer for a HUBZone contract (like other SBA programs) and must recertify HUBZone program eligibility every three years. Finally, the HUBZone price evaluation preference does not apply in the context of an offer from a mentor protégé joint venture involving a large business.

8(a)

Unlike other SBA certification programs, SBA’s 8(a) program has a good character requirement because it is a developmental program. SBA adopted its proposed clarification that applicants will not be automatically barred from 8(a) certification based on past criminal activity. A denial of 8(a) certification based on a lack of business integrity will be based on conduct that could be grounds for suspension and debarment. Some other clarifications include a non-disadvantaged minority owner’s right of first refusal does not negatively impact a disadvantaged individual’s ability to control the concern; non-disadvantaged individuals or concerns in the same line of business can own up to 20 percent of a concern in the development stage of the program and 30 percent of a concern in the transitional stage; and elimination of consideration of State community property laws when determining ownership.

Highest Compensation

SBA’s 8(a), SDVO and WOSB certification programs generally require that the individual upon whom eligibility is based must be the highest compensated. The 8(a) rules used to require SBA approval before a firm could pay another individual higher compensation. Now, all three programs require notice to SBA of such higher compensation.

Recertification

SBA consolidated size and status recertification into one section. Under the new rules, if a firm recertifies as other than small due to an acquisition of a small business by another small business, the firm will still be eligible for set-aside orders and options under a small business set-aside contract. If a firm recertifies as other than small due to an acquisition by a large business, the firm is ineligible for set-aside orders under an unrestricted contract and orders or options under a small business multiple award set-aside contract, effective January 17, 2026.

Off the Shelf: Paratek & Project BioShield

Dr. Evan Loh, Chief Executive Officer of Paratek, joined Off the Shelf to share the latest in the biopharmaceutical company’s partnership with the Biomedical Advanced Research and Development Authority’s (BARDA’s) Project BioShield.

Paratek’s antibiotic, NUZYRA (omadacycline), has been designated “an essential” medicine by the Food and Drug Administration (FDA), and Loh provides an update on the progress made in onshoring of manufacturing of NUZYRA, from the production of API through finished drug product for both IV and oral formulations.

Loh shares the journey to domestic manufacturing, highlighting the critical role Paratek’s public-private partnership with BARDA played in developing manufacturing capability. Antimicrobial resistance (AMR), along with biological threat actors, are continuing and growing threats. Loh discusses the current environment and the key policy considerations in combatting these and other healthcare threats.

Finally, Loh talks about how the results from the successful development of treatments through private-public partnerships can be leveraged to support/protect the warfighter.

Listen to the full interview here.

NASA Issues Final SEWP VI Amendment, Extends Deadline

On January 17, the National Aeronautics and Space Administration (NASA) issued Amendment 11 of the SEWP VI Request for Proposal (RFP), along with the final set of Q&A responses. Amendment 11 and the associated attachments and exhibits are the final RFP requirements for SEWP VI. NASA does not plan to release anymore Amendments or respond to any more questions.

The submission deadline has been extended to 1:00 PM (ET) on February 19, 2025.

Stanford Study Highlights Challenges with AI Governance

Fedscoop reported on the findings of a recent Stanford study assessing the Federal Government’s progress in implementing AI governance policies. The report follows up on previous Stanford research published in 2022 that highlighted specific challenges for the government with implementing the U.S. AI strategy. In response to the 2022 findings, the Biden Administration issued an EO on AI governance and OMB released memos requiring agencies’ to appoint Chief AI Officers (CAIOs) and publish compliance plans, among other actions.

The Stanford review found that while progress has been made in the past few years, there is significant variation in agencies’ AI efforts. According to Stanford’s research, many CAIOs hold dual roles due to talent shortages which has led to a lack of focus on AI governance goals, vague compliance plans, and the failure to request adequate funding. Researchers recommend improving the visibility of the CAIO role, as well as enhancing public disclosure and support for AI initiatives. With the new Trump Administration and the repeal of the previous AI executive order, the direction of future AI policies and governance will be forthcoming.

Seeking Member Feedback on Proposed Rules on OCI, CUI and MAC Small Business Participation & Protests

Proposed Rule: Preventing Organizational Conflicts of Interest in Federal Acquisition

The Coalition is seeking feedback on a proposed rule entitled “Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition.” This rule implements the 2022 Preventing Organizational Conflicts of Interest in Federal Acquisition Act. This Act directs the FAR Council to provide and update:

Definitions, to include those related to specific types of organizational conflicts of interest (OCIs), including unequal access to information, impaired objectivity, and biased ground rules;
Guidance and illustrative examples related to relationships of contractors with public, private, domestic, and foreign entities that may result in OCIs; and
Illustrative examples of situations related to the potential for OCIs.

The proposed rule will “provide agencies with tailorable solicitation provisions and contract clauses to avoid or mitigate organizational conflicts.” In addition, executive agencies will be required to “establish or update agency conflict of interest procedures to implement these revisions to the FAR.”

Please submit your feedback to Greg Waldron at gwaldron@thecgp.org by March 3.

Proposed Rule: Controlled Unclassified Information (CUI)

The Coalition is collecting feedback on a proposed rule entitled “Federal Acquisition Regulation: Controlled Unclassified Information.”

This rule aims to implement the cyber-security requirements in NIST SP 800-171 Rev. 2, for contractors storing or transmitting Controlled Unclassified Information (CUI), as required in 32 CFR part 2002. CUI is defined as as information that does not meet the requirements for classification but still requires safeguarding or dissemination controls.

Contractors receiving CUI will be subject to a new FAR clause, FAR 52.204-XX, which will direct contractors to protect CUI identified in a new form, SF XXX. This form will be completed by agency officials. The new clause includes two new reporting requirements. Suspected “CUI incidents” and suspected failures by the government to identify CUI must each be reported within eight hours. The clause will flow down to all subcontractors who touch CUI. Similar to the CMMC program, purely COTS contracts are exempt from the application of this clause.

Please submit your feedback to Greg Waldron at gwaldron@thecgp.org by March 3.

Proposed Rule: Small Business Participation on Certain Multiple-Award Contracts

The FAR Council published a proposed rule to issue policy on small business participation on certain multiple-award contracts. The policy would “expand the use of small business set-asides for orders against multiple-award contracts; increase coordination with the cognizant small business specialist and the Small Business Administration (SBA) procurement center representative (PCR) during acquisition planning for multiple-award contracts and when placing orders against multiple-award contracts and provide additional criteria to consider or address in documentation.”

Under the proposed rule, contracting officers are directed to set aside an order for small business under a multiple award contract if the contract officer determines that there is a “reasonable expectation of obtaining offers from two or more responsible small business contract awardees that are competitive in terms of fair market price, quality, capability, ability to comply with the delivery or performance schedule, and past performance.”

Please submit your feedback to Joseph Snyderwine at JSnyderwine@thecgp.org by March 14.

Proposed Rule: Protests of Orders Under Certain Multiple-Award Contracts

The FAR Council issued a proposed rule on protests of orders under certain multiple-award contracts. The proposed rule adds text to clarify that a contracting officer’s decision to set aside or not set aside an order for small businesses under a multiple-award contract is not grounds for protest. The rule clarifies that these protests “challenge a discretionary act statutorily committed to agency decision-making and therefore cannot form the basis for a protest seeking to compel an agency to make a different choice.”

Please submit your feedback to Joseph Snyderwine at JSnyderwine@thecgp.org by March 14.

Recording Now Available: Overview of FY25 NDAA

On January 16, the Coalition hosted a webinar, Overview of the National Defense Authorization Act (NDAA) for Fiscal Year 2025, presented by Moshe Schwartz, President of Etherton and Associates, Inc. During the webinar, Schwartz highlighted the trends and focus areas of the NDAA, including acquisition provisions. He also identified potential future areas of focus and change in acquisition policy.
The recording of the webinar is now available on the Member Portal. To access the recording, click here. For any assistance, please contact Madyson Whiting at mwhiting@thecgp.org.

IT/Services Committee Meeting with GSA’s Tiffany Hixson, Feb. 4

On February 4 from 10:00 – 11:00 AM (ET), the IT/Services Committee Meeting will host a members-only briefing with GSA’s Tiffany Hixson, Assistant Commissioner, Office of Professional Services and Human Capital Categories. The meeting will be held in-person in the DMV area (location TBD) and virtual attendance will be supported. If you have any questions you would like Ms. Hixson to address during the meeting, please contact Joseph Snyderwine at JSnyderwine@thecgp.org.

To register, click here. For assistance with registration, please contact Madyson Whiting at mwhiting@thecgp.org.

Webinar – US Army MAPS: Steering Your Proposals to New Heights, Feb. 6

Please join the Coalition as we host Baker Tilly’s Leo Alvarez, Principal, and Dylan Schreiner, Senior Manager, on February 6 at 12:00 PM (ET) for a webinar, US Army MAPS: Steering Your Proposals to New Heights.

The Department of the Army has reimagined its acquisition approach by consolidating ITES-3S and RS3 into a unified, efficient contract vehicle: the Marketplace for the Acquisition of Professional Services (MAPS). With an impressive $50 billion ceiling over 10 years, MAPS is one of the most sought-after federal contracts for FY 2025. By eliminating duplication, MAPS streamlines the acquisition process for knowledge-based professional services, including IT, and aims to enhance how federal contractors support agency missions, driving results. With two draft RFPs released to date, this eagerly awaited contract is expected to spark intense competition among leading industry players.

Baker Tilly is one of the largest government contractor advisory practices in the nation and offers extensive experience in guiding contractors through the MAC proposal process. Don’t miss this opportunity to hear from the experts on maximizing your contract award potential!

To register, click here. For assistance with registration, please contact Madyson Whiting at MWhiting@thecgp.org.

New Webinar: FAS Catalog Platform – Transforming GSA Contract Management, Feb. 13

Please join the Coalition for a webinar on FAS Catalog Platform – Transforming GSA Contract Management on February 13 from 12:00 – 1:00 PM (ET) with the Gormley Group’s Andrew Sisti, Principal Consultant and GSA Systems Subject Matter Expert.” Andrew will provide an overview of the General Services Administration’s new FAS Catalog Platform (FCP). The new, web-based application is intended to replace GSA’s legacy Schedule Input Program (SIP) and EDI processes. Initially piloted during Spring 2023, GSA began expanding the number of vendors in the FCP system in late 2023 before pausing in June 2024. As the calendar turns over to 2025, GSA is resuming its FCP transition activities, which will greatly transform how vendors manage their GSA contracts. The new, web-based application is intended to replace GSA’s legacy Schedule Input Program (SIP) and EDI processes. Initially piloted during Spring 2023, GSA began expanding the number of vendors in the FCP system in late 2023 before pausing in June 2024. Now that we’re into 2025, GSA is resuming its FCP transition activities, which will greatly transform how vendors manage their GSA contracts.

Don’t miss this opportunity to hear how GSA is transforming the way in which you manage your GSA Schedule contract!

To register, click here. For assistance with registration, please contact Madyson Whiting at MWhiting@thecgp.org.

Join a Coalition Committee

Members participate in various Coalition committees to stay up to date on the latest Federal contracting developments for their particular industry and to provide feedback to the government on contracting programs of interest. The following committees are open to all members:

Business Regulatory Issues Committee (BRIC)
Cyber & Supply Chain Security Committee
Furniture/Furnishings Committee
General/Office Products Committee
Green Committee
GWAC, MAC & Enterprise Committee
Healthcare Committee
Imaging Equipment Committee
Information Technology (IT)/Professional Services Committee
Medical/Surgical Committee
Pharmaceutical Committee
Small Business Committee

Learn more about the Coalition’s committees here. If you are not already on a committee distribution list and would like to sign up, please email Mady Whiting at mwhiting@thecgp.org with which committees you are interested in joining.

FY24 VA Data for Healthcare Members Now Available

To increase the number of valuable tools available for members, the Coalition has compiled several data sets pertaining to VA Medical Centers’ procedures, diagnoses, and product spend. Below is a description of the different VA data reports that the Coalition can provide to healthcare members based on areas of interest to their business:

Diagnosis data by each VA Medical Center: Members can request a report by providing the International Classification of Diseases (ICD)-10 codes of interest to their business.
Procedure data by each VA Medical Center: Members can request a report by providing the Current Procedural Terminology (CPT) codes of interest to their business.
Prosthetic (medical implants, DME) product spend by VA Medical Center: members can request a report by providing the Healthcare Common Procedure Coding System (HCPCS) codes of interest to their business for items managed by VHA Prosthetics.

Diagnosis and procedure data for fiscal year (FY) 2024 is now available. For any data requests or related questions, please contact Michael Hanafin at mhanafin@thecgp.org.