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Posts Tagged ‘strategic advisor’

Is your Business Really Prepared for the ACA?

Politics aside, what do you really need to know about ACA? Some like it; some hate it. There’s seemingly “good news” for the uninsured, yet “bad news” for corporate America. Politicians stump about it, news media “chat” about it nonstop, everywhere you turn there’s something about Obamacare (Affordable Care Act – ACA). With all of the attention, it may be hard to get to the facts and harder to know what to expect, and how one might need to respond. So consider this the “short list” of the important elements of the ACA and what you may need to do about it.

Health Benefit Exchanges – We’ve all heard about the creation of Health Insurance Exchanges, but the focal point of these exchanges for employers deals with the definition of “small group.” The Small Group Market is defined as employers with 100 or fewer employees in the preceding year. However the Exchanges are run by the states that have the authority to define the small group market at 50 or fewer employees in the preceding year.

So what do you need to do? Be aware of how your state defines the small group market because it can have a significant impact on your ability to access the Exchange.

Play or Pay Tax – Larger employers will be potentially subject to the play or pay tax if they do not offer coverage and certain criteria are met, or if they offer coverage and certain criteria are met. Employers will be considered “large employers” if they have an average of 50 or more employees in the preceding year. Employees include “full time equivalent” employees, which are calculated on a monthly basis. The taxes (penalties) for being out of compliance are assessable on a monthly basis.

So what do you need to do? It’s imperative to understand BOTH the way full-time employees are calculated, as well as understand the way coverage is deemed suitable (and thus not subject to possible penalties).

Small Business Tax Credit – Only employers that have 25 or fewer full-time employees and meet other eligibility criteria requirements can claim the tax credit. The average annual wages for employers in this category must be $50,000 or less AND the employer must have a contribution arrangement in effect that satisfies the IRS requirement.

So what do you need to do? If you’re potentially in this arena, you need to understand the calculation of full-time employees as well as the salary calculation. You’ll also need to work with an accountant or tax professional who can help with IRS form 8941 in order to claim the credit.

Medical Loss Ratio – Depending on how the Small Group market is defined in your state, a group may be subject to either an 80% or 85% medical loss ratio standard. This will have an impact on the chances enrollees have of receiving a rebate: 85% for the Large Group Market and 80% for the small group Market. The medical loss ratio is a spending requirement imposed on carriers providing coverage. Rebates are only required if the carrier does not meet the applicable medical loss ratio standard.

So what do you need to know? This element will have an indirect impact on employers because it is directed towards insurance carriers. Many carriers will have to decide if they are going to continue to offer plans in certain markets or if it no longer makes financial sense to do so. If carriers drop out or pull back offerings, the result will be potentially increased pricing for those who remain, and/or driving more people to the exchanges.

Record Keeping Requirements for Everyone – regardless of the size of the company, the ACA is requiring all employers to keep records of their employees, records that are to include household incomes (yes, even for the spouse not employed by the firm), and if they have enrolled in an exchange. The purpose according to ACA is to determine possible “cost-sharing” for those employees who are at or near the poverty level for an individual and/or family (hence why they are requiring family income).

So what do you need to know? Some might think, well, I don’t have any employees at or near the poverty line…however that does not mean you are not required to keep records. Everyone is required. On the other end of the spectrum there may be a Cadillac tax coming down the road in 2017 assessed against those who have plans that are “too rich.”

Other questions employers are asking include, “I’ve heard about grandfathering plans, can I (should I) do that and if so, how?” “Should exchanges be a part of my company’s offering?” As the ACA continues to unfold, there will likely be additional elements of it that employers will be forced to address. The best advice we can offer to employers is: make sure you are working with a Financial Professional who understands the ACA and can help you navigate its impact specific to your firm. Have a plan, and get out ahead of it as much as possible.

P. Allen Haney President, The Haney Company

Mr. P. Allen Haney is a Strategic Advisor to the Government Technology & Services Coalition. He is also a trusted advisor to business owners and nonprofit executives, Allen Haney is best known for solving problems. His consul on employee benefits, executive compensation, and retirement planning routinely vitalizes the health and sustainability of closely held businesses and associations.

He is most appreciated for his all-inclusive, uncompromising commitment to expand client capacity by uncovering risks and opportunities hidden in blind spots. Read more about Mr. Haney here.

Cyber Security Insurance: Does Your Company Need It?

“Cybersecurity – A Special Report”…with newspaper headlines like this in the The Washington Post, cyber security is THE hot topic. If your company uses a computer, credit card, checking account, files a tax return, employs smart phones, or uses iPads, your business is a target for losing intellectual property or becoming the vehicle for a cyber attack — with a huge financial loss as the result.

For individuals the theft or misuse of private information occurs daily. Signals stolen while using public internet, misplaced cell phones, fishing attacks on home computers, and theft of personal computers happen throughout our society and result in long-term financial crisis.

Small Business owners face even greater obstacles from cyber attacks. A recent National Small Business Association reported 44% of their 800 surveyed members had fallen victim to a digital break-in. What are the steps we can take to help thwart these information criminals? Solutions for both companies and individual citizens are very similar.

All business firms using the internet must have a strong risk management plan established and adhere to the rules in order to lessen the impact of cyber theft. With the growth of cloud computing, use of smart phones and tablets, employees telecommuting, and digital information flowing outside the office, cyber attackers have many more access points. The Federal Communication Commission (FCC) lays out guidelines to prevent cyber attacks. Among their suggestions are:

Train employees in security principles. Use strong passwords with expiration dates.
Protect information, computers and networks from cyber attacks. Install fire wall security, the latest security software and web browsers.
Create a mobile device action plan. Password protect devices, encrypt data, and install security apps and how to report lost or stolen equipment.
Make copies of all important data. Store offsite or in the cloud.
Passwords and authentication. Require unique passwords and change every three months.

Many businesses have the additional exposure of outsourcing data. Many businesses share customer information with third parties who provide billing, payroll, and employee benefits. Additionally, web hosting, HR services, and information technology services are frequently outsourced. Despite this outsourcing exposure many businesses do not require third parties to cover costs associated with data breach in their contacts. When using outside partners, what is the risk-management strategy they use to protect you against financial loss and reputation harm?

Because of the explosion in internet usage many companies are seeking contractual risk transfer and indemnification through insurance. Starting in the early 1990’s insurance has changed to provide protection for cyber growth. Today numerous insurance companies either provide stand-alone policies or add the protection with other coverages, such as Directors & Officers policies (D&O), Errors & Omission Policies (E&O), and Fiduciary Liability policies. An E&O policy is a type of professional liability typically issued to companies setting standards for them selves or other clients. D&O liability coverage is designed to protect companies against their management decisions and covers directors, officers, staff and the organization itself.

Cyber Liability Policies should provide protection for both First Party and Third Party Claims.

First Party coverage includes:

Network and Information Security Liability
Communication and Media Liability
Regulatory Defense Exposure

Third Party coverage includes:

Crisis Management Event Exposures
Security Breach Remediation and Notification Expenses
Computer Program and Electronic Data Restoration Expenses
Computer Fraud
Funds Transfer Fraud
E-Commerce Extortion
Business Interruption and Additional Expenses

Cyber Insurance helps before the loss occurs by going through a thorough underwriting process to help highlight the potential risk exposures to be addressed. Nevertheless, should the loss occur these policies help in determining the data leak, PR crisis, IT crisis, and the financial crisis.

The recommendation to combat today’s cyber threat involves risk management planning, assistance from third party partners, and insurance coverage to assist should a loss occur. For more cyber security tips, visit www.US-CERT.com. Learn about the FCC’s Small Business Cyber Planner here.

Mary Jordan, “CYBERSECURITY – A Special Report,” The Washington Post, Thursday, October 10, 2013

P. Allen Haney, President, P. Allen Haney Company

He is most appreciated for his all-inclusive, uncompromising commitment to expand client capacity by uncovering risks and opportunities hidden in blind spots. Read more about Mr. Haney here.

Declet, McGowan and Rye Expand GTSC’s Strategic Advisors

Washington, D.C. – August 27, 2013 – The Government Technology & Services Coalition (GTSC) announced today the addition of Brandon Torres Declet, CEO of Southern Crux International LLC; Mo McGowan, partner at Command Consulting Group and former assistant administrator for the office of security operations at the Transportation Security Administration (TSA); and Angela Rye, principal at IMPACT Strategies, have joined the prestigious board of strategic advisors.

“Homeland and National Security represents a broad range of disciplines and we are extremely proud to welcome such esteemed leaders from Congress and TSA. GTSC continues to attract the foremost professionals interested in applying their expertise to the mission of securing the country and assuring that our government partners have the best innovations, technologies and solutions the industry has to offer,” said Kristina Tanasichuk, CEO of GTSC.

“We have a tremendous amount of work to do to maintain the free flow of people and commerce throughout the United States while ensuring the highest level of security in our transportation systems,” said McGowan. “We must marshal the innovation of the private sector to bring leading-edge solutions to our mission. Neither government nor the private sector can do it alone, and GTSC serves as a unique meeting point for these ideas and needs to come together.”

During his 2002 to 2009 tenure at TSA, McGowan also served as deputy assistant administrator for operations and general manager for cargo and supply chain security. He was responsible for over 53,000 personnel, the screening of 2 million commercial air passengers a day, administering compliance and inspection programs, developing performance based metrics, and enhancing all programs within operations while managing a budget in excess of $3.7 billion. He has been officially recognized as a “Plank Holder” for being one of the founding fathers of TSA.

“Small businesses play an essential role in homeland security – their innovation and creativity brings some of the freshest solutions to market,” said Rye, former senior advisor and counsel to the House Committee on Homeland Security. “I’m excited about contributing to building their capacity and understanding of the federal market.”

Rye served as the executive director and general counsel to the Congressional Black Caucus and was tasked with developing its overall legislative and political strategy. She also served as senior advisor and counsel to the House Committee on Homeland Security under the leadership of Rep. Bennie Thompson (D-MS) and developed the Committee’s general political strategy with a focus on assisting disenfranchised, small minority owned businesses. She is a principal at IMPACT Strategies, a firm focused on national policy and political issues.

Added Declet, “As small businesses grow, they naturally begin to look at opportunities to sell their products and services internationally.”

Brandon Torres Declet brings more than a decade of experience working among senior government officials internationally and at the federal, state and local level. He previously served as counsel to Sen. Dianne Feinstein (D-CA) on the Senate Committee on the Judiciary and as counsel to Rep. Bennie Thompson (D-MS) on the House Committee on Homeland Security. He will work with GTSC members to understand ways to diversify their revenue, including serving as the strategic advisor to GTSC’s international outreach workgroup.

A full list of GTSC’s board of strategic advisors, members and mentors is available at www.GTSCoalition.com.

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GTSC is a nonprofit, non-partisan association of companies that create, develop and implement solutions for the federal homeland and national security sector. Our mission is two-fold: first, to provide exceptional advocacy, capacity building, partnership opportunities and marketing in the Federal security space for small and mid-sized companies. Second, to support and assist our government partners achieve their critical missions with the highest integrity; best and most innovative technologies; and results-based, quality products and services to prevent, protect against, mitigate, respond to and recover from any terrorist attack or natural disaster. For more information on these mentors and the Government Technology & Services Coalition, please visit www.GTSCoalition.com.

For more information, please contact Whitney Kazragis, Public Affairs Manager, at [email protected].

New SBA Regulations Focus on Penalties & Liabilities of Size Misrepresentation

The Small Business Administration’s (SBA) much anticipated new regulations on small business size and status integrity implement key provisions of the Small Business Jobs Act of 2010 (Jobs Act). Most notably (and as anticipated), the regulations implement the strict liability provisions of the Jobs Act by imposing penalties on businesses that willfully misrepresent their small business size or status in order to obtain contracts, subcontracts, grants, cooperative agreements, or research and development cooperative agreements. The regulations also require signed size and status certifications from company officials as well as annual size and status certifications in the System for Award Management (SAM). As a result of these new regulations, small businesses must be vigilant in accurately calculating and representing their size and status. Otherwise such companies risk ruinous contractual, civil, and criminal penalties that can far exceed even the value of the contract, regardless of whether the government receives the actual product or service sought under the contract.

Penalties for “Willful” Misrepresentation of Small Business Size and Status

The SBA’s new regulations impose penalties on any business that “willfully” seeks and receives a contract award by misrepresentation of its small business size and status. Three actions are generally deemed to be willful certifications under the regulations:

Submitting a response to a solicitation (for a contract, subcontract, grant, or cooperative agreement) specifically intended for award to a small business;
Submitting a response to a solicitation (for a contract, subcontract, grant, or cooperative agreement) that, if successful in obtaining an award, would encourage the government to classify the award as being made to a small business; and
Registering on a government contracting database, such as SAM, as a small business concern.

Thus, if a concern holds itself out to be a small business in any of these three ways and is later found not to satisfy the applicable small business requirements, it is deemed to have willfully misrepresented its small business size and status, and is subject to penalties unless certain exceptions apply.

The new regulations create a presumption that the government’s loss caused by a small business status misrepresentation is equal to the amount expended by the government – be it on a contract, subcontract, grant, or cooperative agreement – thereby potentially requiring a contractor to return all money paid under the contract. The new regulations also explicitly discuss civil penalties under the False Claims Act and the Program Fraud Civil Remedies Act, as well as criminal penalties under the Small Business Act. This suggests that agencies may not limit their damages to contract expenditures. Furthermore, a contractor misrepresenting its small business status is subject to suspension and debarment under these regulations.

Annual Small Business Certification on SAM

From a practical standpoint, the new regulations’ most noteworthy requirement is that small businesses must certify their status in SAM at least annually. If a business fails to make an annual certification, it will not be listed as a small business in SAM until it recertifies its status. Such a loss of status obviously impacts a contractor’s ability to obtain contract awards. In the comments accompanying the regulations, SBA clarified that annual recertification on SAM is meant only for purposes of future awards, not continuing eligibility for previously awarded long-term contracts.

Given the myriad problems SAM has faced since it went online last year, only time will tell whether this process will be a simple administrative function for small businesses.

Requirement for Signed Certification of Size Status

The new regulations contain a similar requirement that a small business responding to a solicitation must include in its response a certification of its small business size and status, signed by an authorized official of the business on the same page as the claimed size status.

The regulations also make slight changes to the timing of a small business size determination for participants in the 8(a) Business Development program. Where such a determination previously was made as of the date of the business’s application and the date of certification by the SBA, under the new regulations, a determination is made as of the application date and, where applicable, the date the SBA program office requests a formal size determination.

Exceptions and Safe Harbors

The new regulations are intended to impose penalties only on those contractors that willfully misrepresent their small business size and status. The regulations therefore include limitations of liability in the event of:

“Unintentional errors;”
Technical malfunctions; and
“Other similar situations” showing that any misrepresentation was not affirmative, intentional, willful, or actionable under the False Claims Act. The regulations further state that a prime contractor relying in good faith on a subcontractor’s representation regarding small business status will not be held liable for any misrepresentation by the subcontractor about its size. The new regulations also exempt contractors from liability in cases where government personnel have erroneously identified a contractor as a small business if the contractor has made no such representation and had no knowledge of the erroneous identification.

How Small Businesses Can Avoid Liability

When these new regulations go into effect on August 27, 2013, the burden will be on small businesses to certify their small business size and status in SAM annually, as well as in every response to a government procurement solicitation. To avoid the heavy penalties called for in the regulations, it is paramount that small business contractors be careful and thorough in assessing their size and status.

Some steps small businesses can take to limit potential liability include the following:

Assign one primary, and a secondary, individual for ensuring the representations in SAM are always accurate and are updated once annually;
Clarify who will be the authorized official responsible for signing the small business size and status certification;
Establish and maintain internal management procedures governing size representation or certifications;
Ensure all representations and certifications are clear and unambiguous; and
Make efforts to correct an incorrect or invalid representation or certification in a timely manner.

Robert A. Burton Partner, Venable

Robert Burton of Venable is a GTSC Strategic Advisor and a thirty-year veteran of procurement law and policy development. He served in the Executive Office of the President as Deputy Administrator of the Office of Federal Procurement Policy (OFPP). This piece was written by Dismas Locaria, Keir Bancroft and Nathaniel Canfield of Venable.

For more information on how these regulations might impact your business, or to better understand the requirements regarding small business, click here.

March 12: Writing Proposals for DHS & DOD

Join Tom Essig, former Chief Procurement Officer of DHS and GTSC Strategic Advisor, and Josh Kussman, President of Sentinel Business Advisory Services at The Sentinel HS Group, to gain an in-depth look at every stage in the proposal process — from the RFI to your response to an RFP. They will especially focus on proposal writing for DHS and DOD.

About Mr. Essig

As a senior acquisition professional with more than 30 years experience with the Department of Homeland Security (DHS) and Department of the Navy (DON), Mr. Essig has expertise in contracting and program management and is certified by the Departments of Defense and Homeland Security at career level III in both the contracting and program management.

He currently advises government and commercial organizations on federal acquisition and procurement and contracting matters through his company TWE, LLC. He also currently serves as a Procurement Subject Matter Expert with Kearney & Company.

His most recent federal position was as the Chief Procurement Officer for DHS from 2006 to 2009 where he was responsible for the management, administration and oversight of the department’s acquisition, strategic sourcing program, competitive sourcing program and providing leadership over the department’s $17 Billion in annual acquisitions.

Mr. Essig reported to office of the Assistant Secretary of the Navy (Research, Development and Acquisition) in February 2004. As Director of the Program Analysis and Business Transformation Division, he was responsible for overseeing analysis and support of contracting and business aspects of DON acquisition and other procurement programs and for the development and support of business transformation initiatives within DON. His division reflected the merger of the former Program Analysis and Support Division with the DON Acquisition Reform Office, and he was responsible for functions previously performed by those organizations.

From 1999 to 2004, Mr. Essig served as the Executive Director of the U.S. Navy Office of Special Projects (OSP). The OSP is a second echelon command reporting to the Commander, Naval Supply Systems Command and provides logistics, transportation, finance and other business and supply-related support to the fleet and shore establishment of the Department of the Navy. OSP’s mission supports every facet of the Navy. While in this assignment, Mr. Essig also served as the Director of the Navy Engineering Logistics Office.

Mr. Essig was selected as a member of the Senior Executive Service in 1995 and served as the Director of the Surface Systems Contracts Division of the Naval Sea Systems Command (NAVSEA). In this position he led a major procurement organization that planned, negotiated, and administered approximately 2,000 procurement actions valued at greater than $3 billion dollars annually.

Mr. Essig earned a bachelor’s degree from the University of Maryland in 1976 and graduated, with distinction, from the Industrial College of the Armed Forces in 1991. In 2000, he graduated from the Advanced Program Management Course at the Defense Systems Management College. He is a member of the Department of the Navy Acquisition Professional Community.

Mr. Essig began his federal career in 1976 when he entered the Navy’s Contracting Intern Development Program and was assigned to NAVSEA as a contract specialist, supporting various Naval weapon systems programs. In 1985, he was selected as the contracting officer for the Aircraft Carrier and Battleship programs. While in that position, he successfully negotiated what was then the largest shipbuilding contract in U.S. Navy history: a $4.3 billion contract for construction of two NIMITZ-class aircraft carriers. During his tenure at NAVSEA, Mr. Essig also served as the contracting officer for Standard Missile production, head of the Major Combatant Shipbuilding Branch, and Assistant Director of the Shipbuilding and Undersea Systems Contracts Divisions. In 1997, he received Vice President Gore’s Hammer Award for his work as a member of the Joint Navy/Industry Submarine Combat System Integrated Development Plan Team. He was awarded the Department of the Navy Superior Civilian Service Award in 1999 and the Distinguished Civilian Service Award in 2004.

About Mr. Kussman

Mr. Kussman served as Senior Policy Advisor to U.S. Customs and Border Protection (CBP) Commissioner Robert C. Bonner from Oct. 2003 to December 2005. In 2005, Commissioner Bonner named him Director of Policy for CBP. In that capacity, Mr. Kussman led the development and coordination of agency-wide policy for CBP.

Mr. Kussman has extensive experience on homeland security matters related to border security, terrorism, international trade & travel, customs, immigration, transportation and intelligence.

While serving as Senior Policy Advisor to Commissioner Bonner and Director of Policy for CBP, Mr. Kussman:

Advised Commissioner Bonner on a wide array of matters relating to CBP operations and policies, including the integration of CBP into one agency following the creation of CBP and the Department of Homeland Security (DHS).
Advised Commissioner Bonner and the Chief of the Border Patrol on policies and operations related to the transition of the Border Patrol into CBP and the establishment of a more nationally-directed, headquarters driven Border Patrol, including:
- Drafting and implementing the new National Border Patrol Strategy.
- Reorganizing and re-invigorating the Border Patrol’s new headquarters structure.
- Developing the policies and strategies for the America’s Shield Initiative (ASI).
- Developing strategies for the use by CBP and the Border Patrol of Unmanned Aerial Vehicles (UAVs).

Coordinated CBP’s efforts, in conjunction with DHS, to develop and implement the Secure Border Initiative (SBI).
Led CBP’s process of creating CBP Air, which resulted from the merger of former Air and Marine Operations unit with the U.S. Border Patrol’s aviation division into a single integrated office within CBP. CBP Air is the largest civilian law enforcement air program in the world.
Directed CBP’s efforts to coordinate CBP policies and operations with the Detention and Removals Office (DRO) of U.S. Immigration and Customs Enforcement (ICE).
Led CBP’s coordinated effort to expand the use of expedited removal procedures, for the first time, to Border Patrol Agents operating between ports of entry. This effort involved developing regulations, policies and procedures, providing training to thousands of Border Patrol Agents, and coordinating the implementation of this program with ICE and U.S. Citizenship and Immigration Services (CIS).
Served as CBP’s primary representative to the Interagency Incident Management Group (IIMG), which advises the Secretary of the Department of Homeland Security on important policy and operational issues during significant incidents and contingencies.
Developed international, multilateral, and bilateral strategies for increasing the security of our borders, including:
- The Arizona Border Control Initiative (ABCI);
- The Immigration Advisory Program (IAP);
- Coordinated CBP’s participation in the Security and Prosperity Partnership (SPP);
- Coordinated CBP policies related to the Western Hemisphere Travel Initiative, the National Security Entry Exit Registration System (NSEERS), and the biometric collection of information from travelers.

Worked closely with the Homeland Security Council, the State Department, the DHS Offices of the Secretary, the United States Coast Guard, and the Bureau of Immigration and Customs Enforcement on visa, immigration, maritime security, intelligence, and other homeland security matters.

Before serving in the Department of Homeland Security, Mr. Kussman was an attorney with the San Francisco office of O’Melveny and Myers, where he specialized in intellectual property litigation and white-collar criminal defense.
Mr. Kussman also served as a Lieutenant in the U.S. Navy Reserve. Mr. Kussman is a 1998 graduate, with honors, of the University of Chicago Law School. He graduated cum laude from Williams College in 1994.