Three Developments in Government Contracting for 2022

By Kendria Rice-Locket, Procurement Consultant

 

As 2021 winds down, we are looking at developments that will shape government contracting in 2022.


$15 Minimum Wage for Federal Government Contractors Starting in January 2022

If your company has a federal government contract, be prepared to pay your employees at least $15 per hour as a minimum wage starting January 30, 2022.


In April 2021, the Biden administration issued Executive Order 14026 increasing the minimum wage for federal contractors, and, on July 22, 2021, the Labor Department issued proposed rules on the minimum wage increase. In addition to increasing the minimum wage for federal contractors and subcontractors beginning in 2022, the amount will be recalculated annually starting in January 2023, based on the Consumer Price Index.


As a reminder, if your employees work in states or cities with minimum wages higher than the federal contractor minimum wage, you will need to pay the employees at the higher amount. Additionally, the executive order and rules eliminate the tipped minimum wage for federal contract workers by 2024 and cover federal contract workers with disabilities.


Minority-Owned Contracts to be Increased in 2022

In a White House Briefing Room Fact Sheet, it was announced that the federal government’s purchasing power will be used to grow federal contracting with small disadvantaged businesses by 50 percent. That translates to an additional $100 billion over five years and helps more Americans realize their entrepreneurial dreams.


This announcement will open doors for companies across the nation. Minority-Owned businesses of all sizes will have an opportunity to succeed. If you are a minority-owned business looking to secure contracts with the federal government, this is your opportunity to grow.


CMMC 2.0

The second version of the Cybersecurity Maturity Model Certification (CMMC) framework has been revealed by the Department of Defense (DoD) and will include several major changes that will affect contractors.The enhanced “CMMC 2.0” program maintains the program’s original goal of safeguarding sensitive information, while:

  • Simplifying the CMMC standard and providing additional clarity on cybersecurity regulatory, policy, and contracting requirements.

  • Focusing the most advanced cybersecurity standards and third-party assessment requirements on companies supporting the highest priority programs.

  • Increasing Department oversight of professional and ethical standards in the assessment ecosystem.

Together, these enhancements:

  • Ensure accountability for companies to implement cybersecurity standards while minimizing barriers to compliance with DoD requirements.

  • Instill a collaborative culture of cybersecurity and cyber resilience.

  • Enhance public trust in the CMMC ecosystem while increasing overall ease of execution.

For more information on the changes, visit https://www.acq.osd.mil/cmmc/index.html.


This article was originally published in our monthly KYPTAC Newsletter. If you have any questions about this topic, your KYPTAC consultant is here to help! Not a client? Sign up here.