by McKenna, Long & Aldridge, LLP
The Fiscal Year 2013 National Defense Authorization Act (“NDAA”), signed by President Obama on January 2, 2013, makes numerous significant changes in the federal government’s small business contracting programs. Most importantly, the NDAA authorizes the Small Business Administration (“SBA”) to establish a mentor-protégé program for all small business concerns. Among other changes, the NDAA revises the rules for limits on subcontracting for small business set-asides, eliminates the dollar limitations for set-aside contracts for women-owned small businesses, and creates a small business Ombudsman to serve at DCAA.

By authorizing the use of the mentor-protégé program for all small business concerns, NDAA section 1641 effectively alters the SBA’s affiliation rules, at least for SBA-approved mentors. According to the NDAA, this new mentor-protégé program generally should be identical to the 8(a) mentor-protégé program. Under the current 8(a) program, a mentor and protégé can form multiple joint ventures that are allowed to submit proposals as a small business. In a joint venture, the mentor can have a larger role in supporting the protégé and performing the contract without concern about the application of the SBA’s ostensible subcontractor rule. A mentor also may own up to 40 percent of the protégé. Finally, a company may have up to three protégés, allowing a large business to have a much larger role in the performance of small business set-aside contracts.

Previously, the Small Business Jobs Act of 2010 authorized the SBA to establish a mentor-protégé program for Service Disabled, Veteran Owned small business concerns, Women-Owned small business concerns and HUBZone small business concerns. However, the SBA did not issue regulations to establish these programs. Apparently to avoid a repeat of this problem, NDAA section 1641 requires the SBA to issue regulations to establish the mentor-protégé program for all small business concerns within 270 days.

NDAA section 1651 changes the rule for calculating the limits on subcontracting by a small business prime contractor that apply to contracts awarded via small business set-asides. Previously, to ensure that the small business prime contractor was actually performing a substantial share of each set-aside contract, the small business prime contractor was required to incur at least 50 percent of the labor costs for service or supply contracts and 25 or 15 percent of the labor costs for general or specialty construction contracts, respectively. It was difficult for agencies to enforce this subcontracting limitation during the evaluation of proposals, because for most competitive contracts, the offerors were not required to provide such cost information as part of their proposals or bids.

NDAA section 1651 seeks to address this problem by requiring the comparison of the prime contract price and the subcontract prices, rather than the amounts of labor costs. For service contracts, the small business prime contractor may not expend more than 50 percent of the prime contract price on subcontractors. Similarly, for supply contracts, the small business prime contractor may not expend more than 50 percent of the prime contract price, less the cost of materials, on subcontractors. Regarding the subcontracting limit for construction contracts, the SBA is tasked to determine the subcontracting limits by obtaining public comments during formal rulemaking.

NDAA Section 1697 removes the dollar limitations for set-asides for Women-Owned small business concerns. Under previous law, agencies were only allowed to set-aside acquisitions for Women-Owned small business concerns if the expected value of the contract did not exceed $6.5 million for manufacturing contracts and $4 million for all other types of contracts. Section 1697 allows agencies to set-aside procurements of any dollar amount for Women-Owned small business concerns.

Section 1612 of the NDAA creates the position of Small Business Ombudsman for the defense audit agencies. The Ombudsman will: (1) advise the DCAA Director on policy issues related to small business concerns; (2) serve as the DCAA’s primary point of contact and source of information for small business concerns; and (3) collect and monitor relevant data concerning the timeliness of DCAA’s audit closeouts for small business concerns and responsiveness to small business issues. However, the Ombudsman role is significantly limited, because the NDAA provides that the Ombudsman shall be segregated from ongoing audits in the field and shall not engage in activities regarding particular audits that could compromise the independence of the DCAA.

These NDAA revisions to the Small Business Act will significantly affect small business contracting. We will keep you informed as the SBA issues proposed regulations and regulations to implement these changes.

For additional information, please contact:

Richard B. Oliver
213.243.6169

John W. Heath
202.496.7224

J. Matthew Carter
213.243.6137

McKenna Long & Aldridge LLP (MLA) is an international law firm with more than 575 attorneys and public policy advisors in 13 offices and 11 markets. The firm is uniquely positioned at the intersection of law, business and government, representing clients in the areas of complex litigation, corporate law, energy, environment, finance, government contracts, health care, infrastructure, insurance, intellectual property, private client services, public policy, real estate, and technology. To further explore the firm and its services, go to mckennalong.com.

© 2013 MCKENNA LONG & ALDRIDGE LLP, 303 PEACHTREE STREET NE, ATLANTA, GA, 30308. All Rights Reserved.

*This Advisory is for informational purposes only and does not constitute specific legal advice or opinions. Such advice and opinions are provided by the firm only upon engagement with respect to specific factual situations. This communication is considered Attorney Advertising.

The National Strategy for Trusted Identities in Cyberspace (NSTIC) National Program Office (NPO) recently funded three pilots that will be testing privacy-enhancing cryptography in different use cases and settings as well as two pilots that use alternative non-cryptographic based privacy features. In addition, the NPO has been involved in the development of a project to pilot a Federal Cloud Credential Exchange (FCCX) which also will leverage privacy-enhancing cryptography. A key unmet need is an independent and objective assessment of these pilots that compares and contrasts the usability and privacy performance of the different approaches taken in each pilot, as well as the successes and difficulties each pilot faced in its tests in the marketplace.

The NIST Small Business Innovation Research (SBIR) program is offering small businesses the opportunity to apply for a contract to perform this assessment of the NSTIC pilots and of the FCCX. The goals of this activity are to:

Perform an independent analysis and comparison of each of the pilots, looking at the usability and privacy performance of the different approaches taken in each pilot;
Perform an independent analysis and comparison of each of the pilots, looking at the successes and difficulties each pilot faced in its tests in the marketplace;
Design and, if feasible, conduct usability and performance tests for privacy technologies and features for selected pilots;
Perform a gap analysis of existing standards and research, in order to help identify requirements for identity management efforts (e.g., standards and research work in security, interoperability, usability, etc.).
This assessment will help maximize the lessons learned by the pilots on usable security and privacy in the Identity Ecosystem and provide valuable data to the Identity Ecosystem Steering Group (IDESG) as it engages in developing the Identity Ecosystem Framework, including components related to usability. Additionally, the assessment can help guide the NSTIC NPO in evaluating the usability of project proposals for potential additional pilot grant funding in 2013.

For information on the NSTIC SBIR opportunity, how to apply, and for contact information, click here. The NSTIC opportunity on “Comparison of Privacy-enhancing Technologies and Features” may be found on pages 40-43 of the solicitation document. All questions about the solicitation and subtopics should be directed to the Q&A function on the NIST SBIR website (www.nist.gov/sbir).

For more information on the NSTIC, click here.

Background on the SBIR Program

The SBIR program (http://www.sbir.gov/) was originally established in 1982 by the Small Business Innovation Development Act (P.L. 97-219). Subsequent legislation has extended the program until September 30, 2017. Eleven federal agencies set aside a portion of their extramural research and development budget each year to fund research proposals from small science and technology-based firms.

The SBIR Program goals are:

To increase private sector commercialization of innovations derived from federal R&D;
To use small business to meet federal research and development (R&D) needs;
To stimulate small business innovation in technology; and
To foster and encourage participation by minority and disadvantaged persons in technological innovation.

At GTSC’s holiday awards celebration, we thanked and honored some of the heroes of 2012.

WASHINGTON, Dec. 20, 2012 /PRNewswire/ — The Government Technology & Services Coalition (GTSC), the premier organization for small and mid-sized companies in the Federal homeland and national security market, honored Under Secretary Rafael Borras and Dr. Nick Nayak, Chief Procurement Officer, U.S. Department of Homeland Security, with the Federal Small Business Champions of the Year award. They were awarded yesterday for their work to assure that the innovation, creativity and effectiveness of small businesses is brought to the homeland security mission.

“We believe that Under Secretary Borras and Dr. Nayak have clearly demonstrated their commitment to assuring that the innovation of small companies is constantly applied to the homeland security mission,” said CEO of the GTSC, Kristina Tanasichuk. “We believe that the leadership of DHS has recognized that we must have a mechanism to infuse our current system with new ideas, cutting edge technologies and actual solutions — and small businesses are the source of that.”
The award of Federal Small Business Champion of the Year is awarded annually to the Federal official(s) who show a distinct commitment and tangible results toward improving the environment and success for small businesses in the Federal market. “We are proud of what DHS has collaboratively accomplished with small businesses and are committed to continuing our support to the small companies that are so vital to our nation’s economy and our department’s missions,” said Rafael Borras, Under Secretary for Management at the Department of Homeland Security.

The GTSC also awarded its Member of the Year Award to Hassett Willis and Company. “After working at the Department of Homeland Security and forming my own woman-owned small business to continue to affect positive change at DHS, Hassett Willis and Company is committed to improving the small business market environment,” said Managing Partner Julie Hassett. “It is critical that leading small businesses work on behalf of our community to improve the contracting process, encourage and nurture small companies and assure the homeland security market’s success.” The award is presented annually to the GTSC Member that exemplifies exceptional quality and ethics for the Federal government, a commitment to GTSC’s small business members and advocacy on behalf of our community.
L3 STRATIS won the award for Mentor of the Year. “We recognized immediately the value of GTSC as a place where big, mid- and small-sized companies collaborate to solve challenges and move the market forward,” said Les Rose, president of L-3 National Security Solutions, of which STRATIS is a part. “We are all committed to the mission of homeland and national security and want to continue to mentor and contribute to an environment that brings the best of the market to DHS and our other Federal partners.” Mentor of the Year is awarded annually to the GTSC Mentor who has worked to increase members’ understanding of the homeland and national security market, increased business opportunities for small companies through formal and informal mentoring and engages with GTSC to promote an innovative, robust, fair market for all.
The four were honored at the GTSC’s annual holiday award reception at the U.S. Navy League in Arlington, VA. For more information on these awardees and the Government & Technology Coalition, please visit www.GTSCoalition.com.

The Department of Homeland Security (DHS) has issued the FY13.1 Pre-Solicitation pursuant to the Small Business Innovation Development Act of 1982 (Public Law 97-219), the Small Business Research and Development Act of 1992 (Public Law 102-564), and the SBIR/STTR Reauthorization Act of 2011 (Public Law 112-81). The purpose of this letter is to invite small business concerns especially women and minority owned to submit Phase I proposals to the DHS Science and Technology (S&T) Directorate’s Small Business Innovation Research (SBIR) Program. Small businesses must have the capability to conduct research or research and development (R/R&D) in any of the homeland security-related topic areas included in the solicitation.

The FY13.1 solicitation includes the following five topics for which Phase I proposals are sought at this time.
· Radio Frequency (RF) Sensing of Personnel in Wooded Areas
· Hybrid Analysis Mapping (HAM)
· Burn-Saver Device
· GPS Disruption Detection and Localization
· Quick Disconnect Cables for Utility Power Distribution Systems

During the period December 4 through December 19, 2012, proposers have an opportunity to have direct contact (by telephone or email) with the technical points of contact listed for each topic to ask technical questions about specific technical topics contained in the solicitation. No further direct contact between proposers and the technical points of contact shall occur from December 20, 2012 through January 23, 2013 for reasons of competitive fairness. Proposals may be submitted from December 20, 2012 through January 23, 2013 at 2:00 p.m., Eastern Time.

The solicitation is available on the Federal Business Opportunities https://www.fbo.gov website, quick search using “HSHQDC-13-R-00009”. Each concern submitting a proposal must qualify as a small business in accordance with SBA’s regulations (13 CFR 121.701 through 121.705). Interested parties will need to register if they do not already have an established account at: https://sbir2.st.dhs.gov/portal/public/Menu.action?page=sbir_submission_login prior to submitting its proposal. We recommend that this be done in advance of the proposal submission.

If you have any questions, or would like to learn more about the DHS S&T Directorate’s SBIR Program, please feel free to contact me at 202-254-6966 or via email at [email protected].

Join us for a Roundtable Conversation with
Chairman Michael T. McCaul
Sucommittee on Oversight, Investigations & Management
House Committee on Homeland Security

and incoming Chairman, House Homeland Security Committee

THIS EVENT IS OPEN TO GTSC MEMBERS ONLY
REGISTER

December 12, 2012
1:00 pm – 2:30 pm
Please arrive promptly — the Congressman has a hard stop at 11:30 am.
Chairman McCaul joins us to discuss the politics post-election, the DHS budget ( and any other homeland security or defense budget comments he could make), his thoughts on how cuts will proceed regardless of the outcome of “to sequester or not to sequester” and his thoughts on the role of small business and how we can keep the innovation of their companies flowing to DHS to assure we have the best ideas and technologies out there to defend the country.

About Chairman McCaul
Michael T. McCaul is currently serving his fourth term representing Texas’ 10th District in the United States Congress. The 10th Congressional District of Texas stretches from Austin to the Houston suburbs, and includes Austin, Bastrop, Burleson, Harris, Lee, Travis, Washington and Waller Counties.Known for his unwavering commitment to national security and restoring trust in government, Congressman McCaul has been a tireless champion of the causes that his constituents care most about.
HOMELAND SECURITYCongressman McCaul has spent six years as a member of the House Committee on Homeland Security. He currently serves as the Chairman of the Subcommittee on Oversight, Investigations and Management. The subcommittee has oversight jurisdiction of all Department of Homeland Security operations. Rep. McCaul plans to hold hearings and investigate the major aspects of the DHS to identify waste, fraud and abuse, as well as any gaps and unnecessary redundancies in operations including border security, intelligence gathering and risk assessment, air travel and cybersecurity.

“Our first responsibility is to ensure all operations are functioning at a high level to secure the border and prevent terrorist attacks,” said Rep. McCaul. “Scrutinizing every dollar we spend will help to ensure both fiscal and operational effectiveness.”During the 110th Congress, Congressman McCaul served as Ranking Member of the Homeland Security Subcommittee on Intelligence where he was charged with assessing classified intelligence that determines the risk of a terrorist attack. Previously, Rep. McCaul authored the report “A Line in the Sand: Confronting the Threat at the Southwest Border”, which exposed the increasing threat of Mexican drug cartel violence and the potential to smuggle weapons of mass destruction across the US-Mexico border.Also serving on the Committee on Foreign Affairs, Congressman McCaul works with other nations to open new markets and protect America’s interests abroad. In 2005, Congressman McCaul was named Vice Chairman of the U.S.-Mexico Inter-Parliamentary Group (I.P.G.) by then Speaker of the House Dennis Hastert (R-IL). Every year the Group meets to discuss issues and events involving the two nations. These meetings give both American and Mexican lawmakers the opportunity to address the challenges facing our two countries.WASHINGTON REFORMER

Congressman McCaul has a strong track record as a leading fiscal conservative in the Congress. He never forgets that every dollar the Congress appropriates is the People’s money, not the government’s. As such, Congressman McCaul has fought against the failed $787 billion stimulus, the $700 billion bailout, and the Cap and Trade national energy tax. In addition to his conservative voting record, Congressman McCaul led the charge against earmarks which was adopted as the official policy of the House of Representatives during the 112th Congress.

In recognition of his pro-growth, pro-jobs voting record, Congressman McCaul has been awarded the U.S. Chamber of Commerce’s Spirit of Enterprise Award each year he has served. Congressman Michael McCaul’s stand against unprecedented government expansion and out of control spending has also been recognized by the American Conservative Union, which presented McCaul its coveted ACU Ratings Award.

HIGH TECH LEADERSHIPWith many NASA employees, universities and high tech companies in the 10th District, Congressman McCaul’s service on the Committee on Science and Technology provides him the ability to enhance Texas’ role as a global leader in technology.

In addition to his service on the House Science, Space and Technology Committee, Congressman McCaul is also co-founder and co-chair of the Congressional High Tech Caucus and the Cybersecurity Caucus. In 2008, Rep. McCaul co-chaired the Commission on Cybersecurity for the 44th Presidency which, along with the Center for Strategic and International Studies (CSIS), developed and presented recommendations to President Obama to secure cyberspace and protect our national interests.

The Information Technology Industry Council awarded Congressman Michael McCaul (R-TX 10) its coveted Legislator of the Year Award for 2009 for his support of congressional policies that benefit American technology companies. TechNet, the bipartisan political network of CEOs that promotes the growth of the innovation economy, also awarded Congressman McCaul its annual Founders Circle Award, one of four members of Congress recognized by the organization for their outstanding leadership to champion the nation’s innovation economy.COMMITTEES AND CAUCUSESCongressman McCaul is a member of the House Committees on Homeland Security, Foreign Affairs, Science, Space and Technology, Ethics. He is also founder and Co-Chair of the Congressional High Technology Caucus, Congressional Cyber Security Caucus, and the Childhood Cancer Caucus.

The Government Technology & Services Coalition (GTSC) and the Security Industry Association today announced a new strategic collaboration between the two organizations.

Through this collaboration, SIA and GTSC will work together on advocacy and public policy efforts, and develop joint programs and content for members of both organizations.

“GTSC is very excited about the collaboration with SIA because it enhances the products and technologies available for the Federal homeland and national security mission. SIA members interested in the Federal market will have the opportunity to bring their technological innovations to a host of technology and service providers already working with the Federal community,” said CEO & Founder of GTSC Kristina Tanasichuk. “This collaboration will help ensure that Federal agencies with homeland and national security missions have access to the latest market innovations and Commercial, Off-the-Shelf Technologies (COTS) necessary to achieve their mission.”

Members will also receive a variety of benefits, including discounted registrations to SIA and GTSC events, access to publications and discounts for exhibiting at ISC East and ISC West, the premier events for showcasing the newest products, technologies and solutions to a global audience of security professionals.

“I’m very excited about the relationship with the Government Technology & Services Coalition,” said Don Erickson, Chief Executive Office of SIA. “This collaboration creates yet another benefit for our members. Small and mid-size companies can benefit from receiving member pricing for GTSC events, and it offers additional networking opportunities for SIA and GTSC members.”

“We look forward to GTSC members participating in SIA’s programs, and believe our members have much to contribute to theirs as well.” Erickson added.

Read the entire release here.

GTSC Annual Meeting
November 13 | 8:00AM – 12:00PM | Centra Technology | Arlington, VA
As the visionaries that founded the Government Technology & Services Coalition, we invite each of you to join us at our first Annual mebers-only meeting to review our year and set course for the future. As the market environment becomes more challenging, our ability to collaborate, partner and lead this community is increasingly more critical. Join us to learn about new opportunities, provide your insight and input to our direction for 2013/14 and become more active to increase your footprint!
REGISTER

Our theme: “Collaboration to Achieve Mission”

TENTATIVE AGENDA

8:30 AM Welcome and opening
>>Overview of first year
>>Review of platform
>>Current projects
*Cyber security survey with FBI
*Workshop for contracting officers on the small business experience with Federal contracting
>>GTSC Structure
*How do we want to expand our footprint?
>>Congressional/Budget update
Kristina Tanasichuk, CEO, GTSC
Guest conversation: Michelle Mrdeza, GTSC Strategic Advisor & Senior Principal, Cornerstone Government Affairs

10:30 AM International Opportunities
Kristina Tanasichuk, CEO, GTSC
The Hague Security Delta
Government of Quebec
Guest conversation: Brad Hess, Director, Market Development Cooperator Program, U.S. Department of Commerce

11:00 AM Priorities & Platform
>>GTSC areas of focus
>>Our leadership role

12:30 PM Lion’s Den Member Meeting