Military news

SMALL BIZ NOTES

NAVFAC Marianas awarded about $391M in contracts from October 2019 through September 2020 on which Small Business (SB) concerns may participate as prime or subcontractors.

Of that amount, about $342.1M was awarded to SB concerns to provide a variety of products and services on Guam. Socio-economic breakdown of the SB awards are:

- $319.5M - Small Disadvantaged Business (SDB) - $172.1M - HUBZone Small Business (HZSB) - $22.6M - Women-Owned Small Business (WOSB) - $14.9M - Service-Disabled Veteran-Owned Small Business (SDVOSB)

The sum of the figures above exceed the overall SB awards of $342.1M because some SB concerns qualify for multiple socio-economic categories.

Significant SB awards in September:

• Setiadi Architects LLC was awarded about $1.2M for

A-E services to prepare a family housing area development plan study at Andersen Air Force Base. • Modern International, Inc. was awarded about $8.7M to provide energy efficient lighting, HVAC, and PV upgrades on Naval Base Guam. • Vsolvit LLC was awarded about $1M to provide IT support services on Naval Base Guam. • Serrano Construction And Development Corp. was awarded about $5.7M to provide energy efficiency repairs and upgrades to existing building systems on

Naval Base Guam. • Serrano Construction And Development Corp. was awarded about $2.3M to construct a modular structural fire training facility on Andersen Air Force Base. • Modern International, Inc. was awarded about $1.8M for chiller replacement on Anderson Air Force Base. • Green Clover Services was awarded about $1.4M to provide aircraft and aerospace ground equipment services on Anderson Air Force Base. • Serrano Construction And Development Corp. was awarded about $3.3M to provide a new stand-alone building for storage and maintenance of specialty vehicles on Andersen Air Force Base. • Clayarch Inc. was awarded about $1.4M to replace military family housing playground equipment on

Andersen Air Force Base. • Fargo Pacific Inc. was awarded about $2.1M for family housing roofing repairs/replacement on

Anderson Air Force Base. • Serrano Construction And Development Corp. was awarded about $4.9M for fuel station repairs/upgrades Naval Base Guam. • Reliable Builders, Inc. was awarded about $1.5M to implement soil erosion remediation on Naval Base

Guam. • Fargo Pacific Inc. was awarded about $2.8M for pump station repairs/upgrades on Naval Base Guam. • Fargo Pacific Inc. was awarded about $1.9M to install underground electrical power lines on Naval

Base Guam. • Serrano Construction And Development Corp. was awarded about $4M to construct a consolidated contingency center on Andersen Air Force Base. • Ian Corporation was awarded about $1.3M for hazmat abatement services on Naval Base Guam.

Source: Federal Procurement Data System – Next Generation (FPDS-NG)

FLOW DOWN CONTRACT CLAUSES

Construction and related activities continue to move along in spite of Covid-19 requirements and the current Continuing Resolution spending bill which runs through 11 Dec 2020.

A number of MILCON (military construction) projects have been awarded and several more are expected to be awarded for the construction of Marine Corps Base Camp Blaz.

Due to travel restrictions and skilled labor shortages, prime contractors are seeking qualified subcontractors to assist with current and upcoming projects. That said, here is a friendly reminder about flow down clauses:

Subcontractors/suppliers on a federal contract are not completely relieved of all government rules and regulations. e.g. type of contract, duration, total cost, specific FAR 52.232-27 -- Prompt Payment for Construction Contracts (Jan 2017). Excerpts from this clause include: (c) Subcontract clause requirements. The Contractor shall include in each subcontract for property or services (including a material supplier) for the purpose of performing this contract the following: (1) Prompt payment for subcontractors. A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.

(2) Interest for subcontractors. An interest penalty clause that obligates the Contractor to pay to the subcontractor an interest penalty for each payment not made in accordance with the payment clause -(i) For the period beginning on the day after the required payment date and ending on the date on which payment of the amount due is made; and (ii) Computed at the rate of interest established by the

Secretary of the Treasury, and published in the Federal

Register, for interest payments under 41 U.S.C. 7109 in effect at the time the Contractor accrues the obligation to pay an interest penalty.

Most government contracts have “Flow-Down” (3) Subcontractor clause flowdown. A clause requiring each requirements or clauses. The Federal Government subcontractor to-includes mandatory flow-down clauses in its contracts (i) Include a payment clause and an interest penalty and requires prime contractors to include them in clause conforming to the standards set forth in subsequent contracts to subcontractors/suppliers. subparagraphs (c)(1) and (c)(2) of this clause in each There is no standard list of flow-down clauses for (ii) Require each of its subcontractors to include such government contracts. Flow-down requirements vary clauses in their subcontracts with each lower-tier from contract to contract based on a number of factors; subcontractor or supplier. of its subcontracts; and product/services provided, etc. Other flow-downs include: • 52.222-27 -- Affirmative Action Compliance How do you know if a contract clause/requirement is a Requirements for Construction. “flow down”? If you have a government contract, flow • 52.222-36, Equal Opportunity for Workers with down instructions are typically inserted in the clauses Disabilities (Jul 2014) that must flow down. For example: • 52.222-50, Combating Trafficking in Persons (Mar

2015)