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Unlocking Legal Clarity: How AI Legalese Decoder Enhances Weekly Updates for Government Contractors and Commercial Businesses – September 2024 #4 | PilieroMazza PLLC

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# **GOVERNMENT CONTRACTS**

## **SBA Proposed Material Changes to HUBZone Program: Impact on Eligibility**

**Authors:** Meghan F. Leemon, Emily A. Reid
Recently, PilieroMazza has highlighted a significant development regarding small business eligibility for government contracts. The Small Business Administration (SBA) has unveiled a proposed rulemaking that will usher in substantial changes affecting contractors, particularly those involved in the Historically Underutilized Business Zones (HUBZone) Program. This initiative is a crucial alert for small business government contractors and their partners, as it represents a shift in eligibility criteria that could have lasting implications.

It is important to note that PilieroMazza is actively providing a series of client alerts that delve into the nuances of this proposed rulemaking. This alert focuses specifically on the changes proposed for the HUBZone Program, which could redefine how small businesses engage with government contracts. **The potential ramifications can be extensive, impacting both current and prospective participants in the HUBZone Program.**

For contractors and businesses seeking clarity, the **AI legalese decoder** offers a savvy way to decode the intricate legal jargon involved in these proposed changes. By utilizing AI-driven tools, business owners can swiftly understand the implications these rules may have on their operations and compliance.

[Read more here](#)

## **SBA: Proposed Changes to Negative Control and Ownership Considerations**

**Authors:** Meghan F. Leemon
In a recent client alert, PilieroMazza drew attention to SBA’s proposed rulemaking that aims to revise definitions concerning negative control and unconditional ownership across various socioeconomic programs, which may considerably impact small businesses, notably those with minority shareholders or outside investors.

The proposed changes are significant not only because they aim to unify criteria across the SBA’s numerous programs, such as the 8(a) Business Development and Women-Owned Small Business (WOSB) initiatives, but also because they could challenge established interpretations of control within these entities. These alterations could redefine what it means for a business to maintain control and, conceivably, affect its qualification status when bidding for government contracts. **This alteration essentially threatens to overturn years of existing case law and may affect numerous small business contractors who must align with the new requirement for control and ownership.**

Here as well, using an **AI legalese decoder** can streamline comprehension of this regulatory shift. By converting dense legal terminology into accessible language, businesses can better prepare for the implications of these changes on their standing and competitive edge in government contracting.

[Read more here](#)

## **Bipartisan Deal to Prevent Government Shutdown**

**Source:** Government Executive
In a recent announcement, congressional leaders reached a compromise aimed at maintaining funding for federal agencies through mid-December. The details of the bill are set to be voted on this week, which is crucial in averting an impending government shutdown.

[Read more here](#)

## **Clarification on the HUBZone Program Updates and Reforms by the SBA**

On September 19, the **SBA clarified its proposed rule and opened a request for comments**. This clarification follows a proposed rule published on August 23, 2024, concerning significant changes to its small business programs that will likely require contractors to align with new requirements. Importantly, this clarification explicitly states that it does not address the exclusion from affiliation available exclusively to mentor-protégé joint ventures. The response period for comments on the proposed rule is set to close on October 7, 2024.

For small businesses seeking to navigate these changes effectively, the **AI legalese decoder** can provide valuable insights. It can help small business owners comprehend and evaluate the regulatory landscape, potentially leading to informed decisions regarding their participation in programs like HUBZone.

[Find the clarification here](#)

## **SBA Administrator and FTC Chair Discuss Enhancing Competitiveness for Small Businesses**

The SBA has recently conducted a fireside chat featuring SBA Administrator Isabel Casillas Guzman and FTC Chair Lina Khan. The objective of this dialogue was to explore methods to bolster competition within government contracting for small businesses. Data indicates that the government has consistently surpassed small business contracting records for three consecutive years, with 28.4% of all contracting dollars going to small enterprises in FY 2023.

The SBA’s ongoing rulemaking journey is designed to simplify loan opportunities, effectively doubling the issuance of small-dollar loans through its renowned 7(a) loan program. This focus on clarity and accessibility in financing reflects the administration’s commitment to furthering small business viability in government contracting.

[Read more here](#)

## **State Department’s Push for Vendor Self-Assessments**

In the realm of contractor oversight, Michael Derrios, the senior procurement executive at the State Department, advocates for increased use of self-assessments by vendors. This method could streamline the contractor performance assessment ratings reporting process. However, Derrios noted that the current uptake is disappointingly low. He highlighted the rarity of self-assessments in CPARS, noting its underutilization as a tool for vendors.

For small businesses, understanding the value and process of self-assessments could be crucial in enhancing their performance ratings. Leveraging an **AI legalese decoder** could aid in fully grasping the procedural requirements and best practices for effectively implementing self-assessments.

[Read more here](#)

## **GSA Improves Federal Procurement Through Updates to GSA Advantage**

The General Services Administration (GSA) is actively reforming federal procurement processes by modernizing features like GSA Advantage. The goal is to create a more user-friendly experience for agency officials and vendors alike. Amidst evolving public policy objectives such as supply chain integrity and cybersecurity, the GSA is ensuring these elements are integrated into the acquisition processes from the outset. This initiative is essential for complying with emergent regulations while fostering efficiency within federal procurement.

[Read more here](#)

## **Bipartisan Initiative to Enhance Acquisition Council’s Capabilities**

A coalition of bipartisan lawmakers has introduced a bill aimed at fortifying a federal advisory council responsible for recommending strategies to mitigate risks within federal supply chains. The proposed legislation seeks to provide more funding and broaden the scope of authority for the council, thereby enabling it to issue binding removal orders for technologies deemed risky.

For contractors, staying updated on these developments is essential. The **AI legalese decoder** can assist stakeholders in understanding the implications of such legislative changes on their contracts and compliance obligations.

[Read more here](#)

## **Upcoming Government Contract Presentations**

– ### **SEMINAR:** Common Scenarios Triggering False Claims Act Violations, Part 2: Construction and Workforce Issues
**Date:** October 1, 2024
**Speakers:** Matthew E. Feinberg, Jessica A. duHoffmann, Sarah L. Nash

– ### **EVENT:** NVSBC Huntsville Engagement Breakfast
**Date:** October 3, 2024
**Speakers:** Isaias “Cy” Alba, IV, Nichole D. Atallah

– ### **SEMINAR:** Common Scenarios Triggering False Claims Act Violations, Part 3: Claims and Investigations
**Date:** October 10, 2024
**Speakers:** Matthew E. Feinberg, Mark F. Rosenow

– ### **WEBINAR:** Requests for Equitable Adjustment: Optimizing Recovery from Changes to Government Contracts
**Date:** October 10, 2024
**Speaker:** Lauren Brier

– ### **TRAINING:** Past Performance: Harnessing Your Experience and Protecting It Against Attacks
**Date:** October 16, 2024
**Speakers:** Katherine B. Burrows, Daniel Figuenick, III

– ### **TRAINING:** Joint Venture and Mentor-Protege Bidding Strategies
**Date:** October 17, 2024
**Speakers:** Peter B. Ford, Meghan F. Leemon

– ### **CONFERENCE:** What’s New in GovCon? A Focus on legal Updates for Government Contractors
**Date:** October 30, 2024
**Speaker:** Isaias “Cy” Alba, IV

# **LABOR & EMPLOYMENT**

## **Congress Tackles Bills on Telework, Marijuana, and Labor Unions**

Recent developments indicate that a Senate committee has advanced bills aimed at improving telework data reporting among federal agencies while simultaneously addressing restrictions on federal employees regarding past marijuana use. Conversely, counterparts in the House have promoted contentious legislation designed to diminish the influence of federal employee unions and reform ask questions on the Federal Employee Viewpoint Survey.

[Read more here](#)

## **Latin American Aid Agency Employees Vote to Unionize**

At the Inter-American Foundation, workers have overwhelmingly chosen to unionize with the American Federation of Government Employees as a response to shortcomings in in-house HR resources and persistent staffing shortages.

[Read more here](#)

## **Upcoming Labor & Employment Presentations**

– ### **PM TRAINING:** ABCs of the SCA: Critical Path Service Contract Act Training for Government Contractors
**Date:** October 22, 23, and 24, 2024
**Speakers:** Nichole D. Atallah, Sarah L. Nash

# **NATIVE AMERICAN LAW & TRIBAL ADVOCACY**

## **Treasury Proposes Definitions for Tax-Exempt Tribal Benefits**

The Treasury Department, along with the IRS, has released proposed regulations intended to clarify which tribal welfare benefits will be exempt from taxable income.

[Read more here](#)

# **MERGERS & ACQUISITIONS**

## **Upcoming Mergers & Acquisitions Presentations**

– ### **PM WEBINAR:** Strategies for Success in M&A within the Manufacturing Industry
**Date:** October 17, 2024
**Speaker:** Isaias “Cy” Alba, IV

# **CYBERSECURITY & DATA PRIVACY**

## **Pentagon Prepares for CMMC Implementation with Training and Tools**

As the rollout of the Cybersecurity Maturity Model Certification (CMMC) approaches, the Pentagon is developing necessary training and tools to assist its program managers in identifying sensitive information that should adhere to CMMC requirements.

[Read more here](#)

## **CISA Releases Guidance for Federal Cybersecurity Priorities**

To bolster cybersecurity defense mechanisms, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency has issued guidance aimed at helping federal civilian agencies mitigate cybersecurity risks.

[Read more here](#)

## **DLA Automates Compliance for CMMC Requirements in Contracting**

The Defense Logistics Agency is among those gearing up for the new Cybersecurity Maturity Model Certification. They are currently implementing automated systems to verify contractor adherence to the National Institutes of Standards and Technology’s standards.

[Read more here](#)

# **CONSTRUCTION**

## **HUD Final Rule Changes Impact on Housing Standards**

1. **Manufactured Home Construction and Safety Standards (MHCSS):**
On September 16, HUD published a final rule revising its current MHCSS, implementing changes based on public feedback from the last comment period.
**Effective Date:** March 17, 2025.

2. **Modernizing Housing Counseling Services:**
On September 16, HUD amended its regulations to empower housing counseling agencies to use alternative communication channels, including virtual meetings instead of traditional in-person services.
**Effective Date:** October 16, 2024.

# **LITIGATION & DISPUTE RESOLUTION**

## **Judiciary Panel Supports Amicus Funding Disclosure Reform**

A proposed overhaul aiming to enhance financial disclosures related to appellate amicus briefs has garnered significant attention and support, particularly from some influential congressional Democrats.

[Read more here](#)

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