Breakout Session # 1110 Scott E. Silverstein , Attorney, Gibson, Dunn & Crutcher LLP

1. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

2. Small Business Contracting: Cracking Down on Large Business Offenders Breakout Session #1110 Scott E. Silverstein, Attorney, Gibson, Dunn & Crutcher LLP Work: (202) 955-8229 Fax: (202) 530-9687 April 28, 2004 11:40 a.m. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

3. Introduction • Changing Environment • Increased attention to compliance with small business programs • Greater efforts by government agencies to plug loopholes in existing law • Aggressive government actions to discourage inaccurate certifications NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

4. United States Small Business Program • Small Business Administration (SBA) • Size Standards • NAICS size codes • Self-certification system • Affiliation • Ownership • Management • Contractual relationships NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

5. Small Disadvantaged Business Program • Criteria • Small business • Owned and controlled by socially and economically disadvantaged individuals • Must be approved by SBA • Notice Requirement • Change in eligibility must be reported within 10 days • Examples: ownership, control, size NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

6. 8(a) Business Development Program • Function • Promotes growth and development of small disadvantaged businesses with responsible contracting histories • Authorizes SBA to enter into contracts with government agencies for procurement of goods and services from SDBs • Notice Requirement • Annual certifications • Otherwise, same as SDBs NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

7. Requirements to Update Size Certification • Initial Certification • Relevant date is date of submission of proposal including size certification • Small Business Set-Asides • Relevant date is date of contract renewal • Cases NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

8. Requirements to Update Size Certification • Federal Supply Schedule Task Orders • 2002 GSA class deviation • Required to certify upon each contract option renewal • Task order date applies if additional certification is required • Size Appeal of SETA Corp. • CMS Information Services NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

9. Requirements to Update Size Certification • Proposed Amendment to SBA Regulations • Annual certification updates required of contractors holding multiple award contracts • Contracting officers retain discretion to request more current size certifications NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

10. Penalties • Available • Civil • Administrative • Criminal • Statutes • Small Business Act • False Claims Act • “Implied Certification” Theory of Liability NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

11. Conclusion Work: (202) 955–8229 Fax: (202) 530-9687 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”