Articles posted by rosten
Termination of Government Contracts: Settlement Proposals for Fixed Price Contracts
When the U.S. government terminates a fixed-price contract for convenience, contractors are entitled to payment for completed work and reasonable costs. Calculating a fair settlement involves tracking hours, identifying completed deliverables, and proposing a reasonable hourly rate. This article summarizes the main issues in developing a Termination Settlement Proposal....
Read moreNavigating Uncertainty: Legal Support for Small Businesses Amidst Trump-Era Tariffs
The Trump administration's tariffs have created significant legal and economic challenges for small businesses, including increased costs, supply chain disruptions, and heightened uncertainty. These tariffs, aimed at reshaping trade and domestic policy, have faced legal challenges, with courts ruling against their use under certain statutes. Small businesses must navigate these complexities by understanding tariff classifications, preparing for potential refunds, and exploring alternatives such as domestic suppliers or strategic price adjustments. Collaboration and staying informed are crucial for mitigating the impact of these unpredictable policies....
Read moreWorld Bank Sanctions: When INT Knocks on Your Door
Winning a World Bank contract is no small feat. You’ve navigated a challenging procurement process and committed to upholding the Bank’s stringent ethical standards to safeguard the integrity of the process to obtain and implement the project. You’ve read the latest World Bank procurement regulations for investment project financing, and particularly the World Bank Group’s Sanctions Framework. You’ve pledged to steer clear of corrupt, fraudulent, collusive, or coercive practices. But what happens when the Integrity Vice Presidency (INT) comes knocking? An investigation into your contract can be a daunting turn of events. Understanding the World Bank’s Sanctions System (WBSS) is crucial for anyone working with World Bank-funded projects. This article breaks down the essentials of the Wo...
Read moreChanges at the Small Business Administration: Funding for Small Businesses Gets Harder
There are already enormous challenges attracting funding for your startup or small business. Having family, friends, or a large bank account only can take you so far. While the SBA provided substantial funding, this vital resource is now severely constrained, and potentially at risk. The Trump Administration is reshaping the SBA in ways that will affect millions of small businesses across the country. The goal? To trim costs by reducing staff and tightening loan requirements. However, the ripple effects may make it more difficult for startups and small businesses to secure loans, win government contracts, or access technical support. ...
Read moreBusiness Acquisition: Key Takeaways
Part 2 on buying a business. In this part of the series, the buyer reflects on his unsuccessful quest to purchase a small existing company. He shares some suggestions for how to increase the chances of buying a business. He suggests dealing directly with sellers rather than brokers, setting up funding early, and seeking mentorship instead of paying for promises of success. Ultimately, this buyer did not purchase a business due to mismatches between his criteria and available options in his price range....
Read moreBuying a Business: Challenges Abound
Trying to acquire an existing business is not a sport for the short-winded. This is the first part of a two-part article on the challenges of buying a small business. I represented a prospective buyer for eighteen months, before he decided to give up the hunt. This article highlights key lessons learned from his experiences and observations about business acquisitions. The buyer's journey to acquire an existing business faced numerous challenges that ultimately derailed his efforts. This part of the article details the criteria that the buyer used to search for an existing small business: a business priced between $1-2 million that met criteria around risk, growth potential, transferability, and documentation. His main frustrations were not being able to afford businesses that matched their leadersh...
Read moreTermination Not So Convenient: Small Business Government Contractors Hung Out to Dry
Contract termination for convenience is a critical aspect of government contracting. In theory, termination for convenience allows federal agencies to terminate contracts "for convenience" when it serves the government’s interests for whatever reason or for no reason at all. This mechanism provides flexibility for the government to adapt to changing needs, budgets, or priorities without breaching contractual obligations. Understanding the nuances of this process in this environment is essential for contractors to navigate potential risks and protect their interests. This article provides an overview of the consequences of a termination for convenience....
Read moreNonprofits and the Public Interest
President Donald Trump yesterday suggested another weapon in his battle against Harvard University. Invoking a decades-old precedent from the United States Supreme Court, he railed against what he called a “Sickness” presumably at Harvard. If you are associated with a nonprofit, then you undoubtedly know that the purpose of the organization must be exclusively for charitable purposes. The Supreme Court has also ruled that a nonprofit must be in harmony with the public interest....
Read moreGovernment Contractors: Stop-Work Orders
The new reality in Washington is that every government contract is at risk and government contractors need to know what tools the federal government has and will use to curtail existing federal contracts. The first is what has been unveiled in the last couple of weeks. Federal agencies have blanketed government contractors with stop work orders. The next step will be the government invoking termination for convenience provisions in federal contracts. The federal government will also likely delay exercising options to extend existing contracts. And finally the government may starve existing contracts by not obligating funds to existing contracts. This articles discusses ways to prepare for and respond to the first of these measures: stop work orders....
Read moreBeneficial Ownership under the Corporate Transparency Act: Substantial Control
Unless your company is exempt, you need to file a beneficial ownership information report with FinCEN. This article explores who qualifies as a beneficial owner under the Corporate Transparency Act. According to the CTA, a beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25% of a reporting company’s ownership interests....
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