However, 2025 is off to a chaotic start. A new president has led to many changes in the federal government. From downsizing of personnel to the removal of entire programs, the federal government is in overhaul mode. In my opinion, the best advice for federal contractors and subcontractors currently is to be flexible. Work your plan but be ready to change at a moment’s notice.
Let’s discuss some federal regulations and programs currently affecting contractors and subcontractors. Most of these will relate to the Department of Defense. Why focus on DOD? Well, about 99% of all federal contracting in Guam comes from DOD. If you want to sell your products, services, and construction to the federal government, then DOD is the logical target.
DOD contractors and subcontractors must practice good cybersecurity as the Cybersecurity Maturity Model Certification is in effect.
CMMC is designed to enforce the protection of sensitive unclassified information shared by DOD with its contractors and subcontractors and increase assurance that contractors and subcontractors are meeting cybersecurity requirements. Basically, if you are not certified in one of CMMC’s three levels, then you will not be eligible for a contract or subcontract with DOD. Currently, DOD expects 80% of contractors and subcontractors to only need Level 1 certification. This is good news as Level 1 is not as complex or costly as the other levels. Also, Level 1 is a self-certification that requires contractors and subcontractors to affirm and document they are meeting 15 basic cybersecurity requirements. The requirements are outlined in DFARS 52.204-21. The DOD Chief Information Officer has a great website if you want more information.
In the past, large-scale ($35 million or more) federal construction projects required the use of a Project Labor Agreement, which is a collective bargaining agreement with a labor organization. On Feb. 27, DOD issued a class deviation memo rescinding this requirement and asked contracting officers to remove PLA requirements from all current solicitations. You can read the memo here.
On the small business front, the U.S. Small Business Administration recently created the Unified Certification Platform.
Before October 2024, if you wanted to get one of the four SBA small business certifications (8(a), Women-Owned, Service-Disabled Veteran-Owned, and HUBZone) you would have visited four different websites and uploaded much of the same required information for each program. With the UCP, you now go to one website: certifications.sba.gov and apply for all the small business certifications you are eligible for at once. Per SBA, the UCP streamlines the application process and should reduce certification times for these small business programs.
When it comes to small business construction contracts, Naval Facilities Engineering Command Marianas and Andersen Air Force Base’s 36th Contracting Squadron do quite a lot of purchasing using a contract vehicle known as a Multiple Award Construction Contract. MACCs have a designated dollar amount and are made up of a limited number of vetted contractors that compete for multiple projects over multiple years.
These contractors usually have one or more small business certification and quite a few of them are working multiple MACCs. Current MACCs in Guam include:
- $700 million HUBZone MACC with 10 contractors that is scheduled to end in 2028.
- $600 million SB Design-Build MACC with 10 contractors that is scheduled to end in 2028.
- $150 million 8(a) MACC with 10 contractors scheduled to end in 2029.
- $400 million HUBZone MACC with 10 contractors that is scheduled to end in 2030.
To recap, the outlook for federal contracting in Guam remains positive. The key for 2025 is to be ready for change. It will come and the companies that are flexible will succeed.
Guam APEX Accelerator staff are familiar with all aspects of federal contracting and can assist with your questions or concerns. Best of all, Guam APEX Accelerator services are free of charge. To learn more about government contracting and to avail of our services, please visit our website: www.guamapex.com. mbj
— Boris Hertslet is the program manager at Guam APEX Accelerator, formerly Guam Procurement Technical Assistance Center. He can be contacted at boris@guamapex.com.