Government contracting
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 more
Termination 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 more
Government 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 more
Sale of Small Businesses: Asset vs. Stock Purchases
This article summarizes the two main structures in purchasing a small business: asset purchases and stock purchases. Each has its advantages and disadvantages. Spoiler alert: in general the buyer favors an asset purchase, and the seller favors a stock purchase. The structure of purchasing a business is a major point of negotiation. Which road you travel will affect other critical issues such as the purchase price and timing of the transaction. Although the structure can be changed, the parties should consider and address the structure of a sale of a small business at the time that they negotiate a letter of intent. For most purchasers of small businesses, asset purchases are more advantageous. They provide greater safety in terms of liability and have tax benefits that stock purchases do not. There are limited…
Read more
Improper Influence in Academic Research: False Claims Act
There have been a rash of news stories on various constraints under which U.S. universities and other research institutions must labor to cooperate with foreign institutions and academics. This is a hot issue because the life blood of many U.S. institutions is cooperation with foreign institutions. The U.S. government has been keenly concerned about this cooperation because of the specter of espionage and intellectual property theft. Institutions of higher learning have countered that overzealous government oversight impedes academic freedom. Given this heightened scrutiny, researchers, colleges and universities need to understand the constraints that are imposed in cooperating with foreign institutions and researchers. There are three major laws today that are in the toolkit of prosecutors who are scrutinizing these…
Read more
Women Owned Small Businesses: Certification Required
Many small businesses are government contractors. They seek the services of a small business attorney to navigate the difficult landscape of government contracting. One significant lever to allow these small businesses to compete in the government contracting arena is to qualify for one of the contracting assistance programs, such as women owned small business program, administered through the Small Business Administration. There are several advantages if your small business qualifies for one of these certifications, including set asides and sole source contracts. A WOSB is also attractive to a government agency or prime contractor trying to meet its targets. Previously, women owned small businesses were able to self-certify, but as of last year, there are new restrictions on self-certification. This article explores…
Read more
Paycheck Protection Program: Brother, Can you Spare $349 Billion
The small business of all stripes cheered when the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act provides some relief to small businesses through providing economic injury disaster loans; easing payments on current SBA loans; and then the Mother lode, the Paycheck Protection Program (PPP). The PPP provides huge incentives to small businesses to keep workers on their payroll. There are undoubtedly many government programs in which the bureaucratic obstacles overwhelm the efficacy of the program. The PPP loan program does not appear to be one of them, although the jury is still out. Nevertheless, all small businesses should apply for a PPP loan as soon as possible.
Read more
Lessons from Failed Business Acquisition
Half of acquisition deals close. The other half don't. I recently represented a client in a transaction in which the deal died. She offered to share lessons learned from an unsuccessful acquisition. In this article, she has given us four lessons learned from the ultimately unsuccessful negotiations. These are the four major lessons she wanted to share with other potential purchasers of small businesses: lesson 1: seek legal guidance early on; lesson 2: be specific about due diligence requests; lesson 3: early misalignment is a sign of the future to come; and lesson 4: better understand certifications for government contractors.
Read more
Government Contracting: Teaming Agreements
If you are a small business and are interested in government contracting work, then the most likely entry point will be an arrangement with another company. How you structure this cooperation will be a critical and significant element of success. This article discusses teaming agreements and summarizes some structures that may appeal to small businesses.
Read moreCategories
- Business disputes and litigation
- Business formation and startups
- Business transactions
- Corporate compliance
- Corporations
- Government contracting
- International business transactions
- Legal News and Resources for Small Businesses
- Limited liabilty company
- Mergers and acquisitions
- Non-profit law
- Rosten Law
- Russian articles
- Securities
- Small business attorney
- Small business investing
- Taxes
