The August newsletter from the SmallGovCon is out! Click here to read the full newsletter, which is created and written by Steven Koprince.
Here are some highlights from the August Edition:
Family Relationship, Plus Revenues & Subcontracts, Caused Affiliation, Says SBA OHA
A small business was affiliated with companies owned by the business owner’s father and siblings, based on the family relationship and the companies’ ongoing history of doing business together.
In a recent size appeal decision, the SBA Office of Hearings and Appeals held that the small business had not successfully rebutted the regulatory presumption that companies owned by close family members are affiliated, because the small business had earned substantial revenues from the alleged affiliates, and intended to issue a subcontract to both affiliates with respect to the procurement at issue.
Davis-Bacon Act Fraud: Subcontractor’s Owner Sentenced
Davis-Bacon Act fraud has resulted in a criminal sentence for the owner of a now-defunct construction subcontractor.
According to a Department of Justice press release, the subcontractor’s owner has been sentenced to four years of probation (including 18 months of home confinement) and ordered to pay $164,627 in restitution, after pleading guilty to charges of conspiracy to pay employees less than prevailing wages on a federal construction project in Boston.
GSA Schedule Sales of Chinese Products Result in $2.3 Million False Claims Settlement
Sales of Chinese products off the GSA Schedule has resulted in a $2.3 million False Claims Act settlement.
According to a Department of Justice press release, Samsung Electronics America, Inc. has agreed to the settlement to resolve allegations that Samsung informed GSA Schedule resellers that certain products were manufactured in “designated countries” under the Trade Agreements Act, when in fact those products were manufactured in China.