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Subcontract Unenforceable When Violates SBA Requirements

Client Alert | 1 min read | 08.30.10

In Morris-Griffin Corp. v. C & L Servs. Corp. (Aug. 16, 2010), the U.S. District Court for the Eastern District of Virginia found that a subcontract between a small business prime contractor and its large business subcontractor was unenforceable because it violated the SBA's size regulations and limitations on subcontracting. After finding that the two companies were affiliated and that the large business subcontractor was seeking to enforce a subcontract under which it was entitled to greater than 50% of the costs incurred for personnel, the court concluded that the prime had falsely certified that it was a small business and that its contract awarded under an 8(a) set-aside had been "conceived in fraud," noting further that such set-asides "are susceptible to finagling."

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Client Alert | 2 min read | 07.15.26

CMMC Phase II Suspension Requires Reconsideration of Such Requirements in Solicitations

As discussed in more detail here, the U.S. Department of War (DoW) recently issued a memorandum (Memo 26-P-1023, dated July 13, 2026) directing the immediate suspension of Cybersecurity Maturity Model Certification (CMMC) Phase II requirements (Level I and II self assessments are still permitted). Significantly, the memo directs that “all pending and future CMMC implementation milestones across DoW solicitations and contracts are held in abeyance until further notice.” Moreover, the DoW issued a memorandum on implementing these requirements (available here), directing agencies to issue amendments removing CMMC Level 2 and 3 requirements from active solicitations “as soon as practicable.” Contractors should monitor the government’s compliance with this requirement and should be prepared, if needed, to file a bid protest to protect their rights....

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