WIPP News: IRS Issued Proposed Rule Implementing 3% Tax Withholding for Contractor Goods and Services

WIPP is a part of the Government Withholding Relief Coalition. The coalition just sent a memo stating that:

Government Withholding Relief Coalition

The IRS has issued their proposed rule implementing the 3% Tax Withholding. It will appear in the Federal Register tomorrow, December 5th. We will discuss this at the meeting on December 16th as well.

http://edocket.access.gpo.gov/2008/pdf/E8-28789.pdf

IRS PROPOSES RULES ON WITHHOLDING UNDER TAX CODE SECTION 3402(T)

The Internal Revenue Service Dec. 4 issued proposed rules (REG-158747-06) relating to withholding under tax code Section 3402(t).

IRS said the proposed regulations reflect changes in the law made by the Tax Increase Prevention and Reconciliation Act of 2005 (Pub. L. No. 109-222) that require federal, state, and local government entities to withhold income tax when making payments to persons providing property or services. The proposed regulations provide guidance to assist the government entitiesin complying with Section 3402(t), IRS said.

The regulations, which will appear in the Dec. 5 Federal Register, also provide certain guidance to persons receiving payments for property or services from government entities, IRS said.

ODNI Announces New Security Policy for Information Systems

A groundbreaking new policy from the Office of the Director of National Intelligence changes how the intelligence community and, by influence, the entire federal government will build, validate and approve information technology systems. The policy requires common security controls and risk-management procedures – a unified approach to enhance collaboration.

Click here for the entire article

Have you won a government contract?

Send your announcement with the following information included and we’ll consider it for the Winning Contracts column for Corridor Inc.

Major Wins
Winning Contracts Presented by



Click here to see a recent column on the Corridor site.

Please include this information:
1. Your company name
2. Your location (City, State)
3. Your contact information (name, email, phone)
4. What agency awarded the contract
5. The contract amount
6. What services or products you are providing
7. Any other appropriate information

Please send the information to info@targetgov.com

Very Important Message to ALL Vendors from GOVPRO.com

Excerpt: Vendors, don't forget: The federal fiscal year ends Sept. 30! by Michael Keating, GOVPRO.com

"...It's right around the corner. The federal government's fiscal year 2008 ends Sept. 30, and all 1,300 federal agencies will be working to spend down their budgets before the witching hour..."

Click here for the entire article

SBA Further Increases Small Business Size Standards Due to Inflation

This rule increases the nonmanufacturer anchor size standard from $6.5 million to $7.0 million. This rule also increases the size standard for Computer Systems Design Services (NAICS 541512) from $23 million to $25 million. Click here for more info on this latest increase.

National Minority Enterprise Development Week

TargetGov to Exhibit

September 4, 2008
Omni Shorehame Hotel
Washington D.C.

The National Minority Enterprise Development (MED) Week Conference, September 3-5, 2008, is the largest federally sponsored Conference held on behalf of minority entrepreneurs and business enterprises. Tools, strategies and resources for developing global and strategic partnerships, accessing capital through partnerships and becoming an active player in global trade will be made available to participants.

Make sure to stop by the TargetGov booth

Click here for details

TUNE IN TO CHANNEL 98

If you are located in Anne Arundel County, Maryland and want to see a television show regarding BRAC business opportunities, please tune in!

Click here for airing times and topics

Upcoming Speaking Event

The 20th Public Procurement Forum
Hampton, Virginia

"Enhancing the outcome of your supplier development programs"

Gloria's sessions are designed to help buyers better understand the risks and rewards suppliers face when doing business with government so you can enhance the outcome of your supplier development programs.

Click here for more information

Prompt Payment Policy Directive

“Kudos to Maryland for instuting a prompt payment directive. Too bad we needed a directive to make sure our small businesses get paid for doing work on state contracts.” ~ Gloria

August 4, 2008

RE: Prompt Payment Policy Directive Issued by Governor O'Malley

Dear Friends,

I am pleased to inform you that Governor O'Malley, through the Governor's Office of Minority Affairs (GOMA), has issued a Prompt Payment Directive to ensure timely payment for all subcontractors, including small and minority business enterprises who participate on State projects.

What Does This Mean for Small and Minority Businesses? Untimely payment of subcontractors is a re-occurring concern for small and minority businesses. As small business owners, minority business leaders, legislators, and others who are on the front lines advocating for fair treatment of small and minority firms, you know all too well the impact payment disputes have on small businesses, especially MBEs. Payment disputes top the list of the most frequent complaints GOMA receives from MBEs who work as tier two and three subcontractors on State projects.

This Prompt Payment Directive provides specific remedies for Cabinet Level Agencies that, effective immediately, are authorized to include provisions in solicitations and contract documents that sets forth guidelines requiring prime contractors to remit timely payment to subcontractors for work performed. This directive also empowers agencies to ensure that subcontractors listed on contract participation schedules are receiving compensation and it requires agencies to notify GOMA of all subcontractor payment complaints. State Procurement Law currently contains a prompt payment requirement that applies to construction related contracts. This directive applies to all other State procurement contracts in excess of $25,000 thereby effectively giving prompt payment protection to all State contracts and procurements.

To assist small and minority businesses who encounter prompt payment issues when working on State contracts, GOMA has developed an informational Guide to Prompt Payment for Non-Construction Subcontractors. To view or download a copy, click here. We invite and encourage all parties who serve small and minority firms, to share this information with their members and constituents.

Efforts such as this "prompt payment" policy directive are just one example of the O'Malley-Brown Administration's progress towards ensuring greater inclusion and fair treatment for Maryland's small and minority businesses. Maryland's small and minority business laws and support of policy initiatives like "prompt payment" are unprecedented anywhere else in the country. It is our expectation that this will bring much needed relief to small and minority firms who contribute to the base for Maryland's middle class and help sustain our economy.

The O'Malley-Brown Administration continues to strengthen its commitment to the success of Maryland's small and minority businesses; as well as promoting inclusion initiatives that will enhance the vision of One Maryland.

Sincerely,

Luwanda W. Jenkins, Special Secretary
Governor's Office of Minority Affairs

US Innovation is Strong – with Federal Help

Today’s innovation is not your father’s—or your grandfather’s---innovation. The way that new products, services, and technologies emerge has changed. A new study sponsored by the Information Technology and Innovation Foundation analyzes decades of data with interesting results. One major finding is that the role of Federal investments in supporting innovations has grown rapidly.

Click here for more of the report’s interesting results.

$162 Billion War Appropriations Bill Signed

President Bush on Monday signed legislation to pay for the war operations in Iraq and Afghanistan for the rest of his presidency and beyond, hailing the $162 billion plan as a rare product of bipartisan cooperation...The legislation will bring to more than $650 billion the amount Congress has provided for the Iraq war since it began more than five years ago...

Click here to read the entire article

Is Your Firm A Gazelle?

New SBA Office of Advocacy-sponsored research offers compelling evidence in support of findings that should come as no surprise: high-growth gazelle firms matter. The research uses a new data set developed by the Corporate Research Board to get a sense of what high-impact firms look like and how they affect the economy. The study reviews the period between 1994 and 2006, and, in the last time frame of 2002-2006, it identifies more than 376,000 high impact firms... There’s a reason why these companies are called “high impact.”

Click here to read the entire article

© 2008 The Public Forum Institute and the National Dialogue on Entrepreneurship

Have you heard?

Good News for Small Business and the DoD
"Notice of reinstitution of small business set-asides under the Small Business Competitiveness Demonstration Program."

Click here for more details

IRS Gas Mileage Reimbursement Going Up
"The IRS announced on Tuesday that beginning July 1, the standard rate used to calculate the deductible costs of operating an automobile for business purposes will be increased to...the highest rate ever"

Click here to read more

House appropriators approve DHS spending bill
"The House Appropriations Committee Tuesday approved an fiscal 2009 spending bill for the Homeland Security Department, after voting on a handful of Republican amendments...$2.3 billion more than President Bush requested."

Click here for more details

Teaming for Growth: Diversity Procurement Fair

The Diversity Fair is an opportunity to participate in a forum for regional companies and professionals, Tuesday, June 24, 2008, to explore the unique and lucrative business of Government Prime and Subcontracting. The day will feature strategic networking opportunities and several educational workshops where TargetGov will present: "New Strategies and Tactics to Win Government Contracts"

Click here for more information on the conference and how to register

Certifications: Learn the Basics and the Crucial Next Steps

Do you qualify for certifications? Attend the Certifications: Learn the Basics and the Crucial Next Steps conference, Thursday, July 17, 2008, sponsored by TargetGov and the Center for Business and Technology Development. This conference is specifically designed to teach the small business owner to use certification as a tool to open the door to increased business opportunities.

Learn to tap into over $15 billion in federal contracts set aside for companies meeting Minority, Disadvantaged and other certifications.

Click here for more information

Diversity Procurement Conference

Teaming for Growth is a Diversity Procurement Fair that you won’t want to miss. The Fair will be held on June 24th, 2008 at the Engineer’s Club beautiful Garrett Jacobs Mansion in the historic Mt. Vernon neighborhood of Baltimore City. The purpose of the fair is to create a forum for regional companies and professionals to explore the unique and lucrative business of Government Prime and Subcontracting. The day will feature; scheduled one-on-one matching sessions with purchasing and procurement officers from Government Agencies and Prime Contractors who have small and diversity business goals. It will also include several educational workshops and strategic networking opportunities.

Click here for more information about the conference

We've Got Good News and...

'Churn' Good for Growth and Productivity

"Job losses and business failures are certainly distressing to the individual... the churning process replaces lower productivity businesses with new, more productive ones, thereby increasing productivity and raising living standards."

Click here to learn more

Wells Fargo/Gallup: Small Business Confidence at Record Lows

"confidence has been dropping for more than a year...A number of factors are scaring small business owners--especially concerns about future cash flow."

© 2008 The Public Forum Institute and the National Dialogue on Entrepreneurship

Click here to learn more

340 out of 351 Contractors Win Navy IDIQ

The U.S. Navy is awarding indefinite-delivery/indefinite-quantity multiple award contracts to 340 contractors that will provide for their competition for service requirements solicited by Naval Sea Systems Command, Naval Air Systems Command, Space and Naval Warfare Systems Command, Naval Supply Systems Command, Military Sealift Command, Naval Facilities Engineering Command, Strategic Systems Programs, Office of Naval Research, Defense Threat Reduction Agency and the United States Marine Corps.

Click here for the entire listing

GOVERNMENT CONTRACTORS ETHICS GUIDANCE NOW AVAILABLE

"Under new Federal Acquisition Regulations (FAR) Part 3.10 that took effect last December, all government contractors are now required to establish ethics programs suitable to the size of the company and the nature of their federal contracting to help prevent fraud and drive ethical conduct," said Open Compliance and Ethics Group (OCEG) President, Carole Stern Switzer. "But like similar regulations imposed on other industries and activities, these regulations don't tell contractors how best to comply.” Click here for more details.

Clean Contracting Act

Congressman Henry Waxman, Chair of the House Government Reform Committee, which has jurisdiction over government contracting, introduced a wide ranging contracting amendment last week called the “Clean Contracting Act” that will affect ALL government contractors.

A sampling of the changes include:

TITLE XLI—ENHANCED COMPETITION
Sec. 4101. Minimizing sole-source contracts.
Sec. 4102. Limitation on length of certain noncompetitive contracts.

TITLE XLII—CURBING ABUSE-PRONE CONTRACTS
Sec. 4201. Regulations to minimize the inappropriate use of cost-reimbursement contracts.
Sec. 4202. Preventing abuse of interagency contracts.
Sec. 4203. Prohibitions on the use of lead systems integrators.

Additional acquisition, fraud and transparency topics are covered as well. Click here for the full text.

I am looking for feedback from contractors regarding the suggested changes. This amendment will be proposed as part of the DOD Authorization bill. Let me know what you think! Deadline for replies to me is June 13, 2008. Email me at info@targetgov.com. Of course, feel free to contact your Congressperson to let them know what you think of the bill as well!