Archive for the ‘General’ Category

For Private Security Contractors in Afghanistan – the Rules Are Changing

Tuesday, September 7th, 2010

Private Security Contractors (PSC’s) engaged in Afghanistan are seeing significant impacts and risks to their contracts after President Karzai ordered a four-month phase out of private PSC’s, both foreign and domestic. The order forces all PSC’s in Afghanistan to obtain licensure from the Afghan government, and would bar all unlicensed contractors from working in the country. The order may result in additional licensing fees and regulations, which will lead to imposing additional costs and other obstacles to contractor performance. As a result of the new hurdles that are facing the PSC’s, their contracts may be expressly or constructively terminated by the US government.

Based upon (more…)

Overhaul to Lease Accounting Could Improve Available Information on the Financial Effects of Lease Contracts

Wednesday, September 1st, 2010

A joint proposal from the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to overhaul lease accounting would result in a consistent approach to lease accounting for both lessees and lessors—a ‘right-of-use’ approach.  The proposals, if adopted, will greatly improve the financial reporting information available to investors about the financial effects of lease contracts.   The proposals are set out in the exposure draft (ED) Leases, which is open for comment until  December 15, 2010 and can be accessed via the ‘Comment on a Proposal’ section of www.ifrs.org or on www.fasb.org.
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What Is Your Good Company Name Worth?

Tuesday, August 31st, 2010

by Jonathan Wachs, Offit Kurman

Business owners spend a tremendous amount of time and resources developing their company’s reputation.  A strong company brand reflects a solid and lasting reputation in the marketplace and serves to generate new employee candidates, referral sources and business opportunities.  Successful companies place their trademarks and service marks among their most highly valued assets.

In an environment where most consumers look online to research various providers of goods and services before making their purchase decisions, it is critical to ensure that your business name is not being confused with another mark or is the subject of misappropriation or dilution.  It is far easier, faster, less expensive and more effective to register and protect your company’s marks before an act of infringement occurs than after the damage has been done.  Significant statutory remedies are available to those who register and routinely enforce their trademarks.  Trademark registration and protection programs can be maintained on a variety of schedules and budgets, and many businesses incur substantial economic losses by failing to adequately protect their trademarks. (more…)

GSA issues Travel Per Diem Rates for FY 2011 – Many localities see Decreases or No change in Per Diem rates

Monday, August 30th, 2010

Government contractors charging travel expenses to their government contracts need to be aware that the General Services Administration (GSA) released the GFY 2011 per diem rates.  The GFY 2011 per diem rates are effective October 1, 2010, and will govern reimbursement of contractor CONUS travel expenses performed on or after October 1, 2010 through September 30, 2011.

The nation’s economic downturn affected per diem lodging rates in many localities, and the majority of locations saw a decrease or no change in per diem lodging rates.  Additionally the GSA’s annual study resulted in five new non-standard areas, which will apply separate rates than the CONUS standard.  Meals and Incidental Expenses (M&IE) have also changed for GFY 2011.

If you currently charge per diem to your government contracts, you should review those rates for the periods October 1, 2010 through September 30, 2011 for any applicable changes.  Need assistance with your government contract rates?  Contact Aronson & Company’s Government Contracts Solutions Group.

U.S. Proposes Changes to ITAR Regulations

Wednesday, August 25th, 2010

The U.S. International Traffic in Arms Regulations (ITAR) prohibits U.S. companies from providing ITAR-controlled defense articles to unauthorized non-U.S. companies.  In addition, even non-U.S. companies that have been authorized to receive such items by the U.S. Department of State were prohibited from providing the items to certain Dual and Third Party National (DTCN) employees unless that DTCN employee had also received State Department authorization. 

The State Department has issued a proposed rule that eliminates the requirement for State Department authorization of DTCNs.  Under the proposed rule, authorized non-U.S. companies would be able to share the ITAR-controlled defense articles with DTCNs provided that the DTCN is a bona fide employee directly employed by the foreign business entity and the transfer takes place in the territory where the foreign business is located and is within the scope of the approved export license.  The proposed rule does require certain safeguards to include a “technology security and control plan” and screening procedures.  Comments on the proposed rule will be accepted through September 10th, 2010.  For a more detailed explanation of the proposed rule please see this International Trade Alert issued by Venable LLP.

Insourcing; DoD Slows, Civilian Agencies Full Speed Ahead!

Thursday, August 19th, 2010

The Department of Defense (DoD) announced on August 9th that it would phase-out its insourcing initiative because the expected cost savings have not materialized.  DoD insourcing planned for 2010 will continue but, with the exception of critical functions such as acquisition, no more insourcing is planned. 

Conversely, Office of Federal Procurement Policy Administrator Daniel Gordon told Government Executive magazine that civilian agencies are free to continue their insourcing efforts. (more…)

Posting of New Labor Union Rights Notice Impacts Most Contractors

Monday, August 16th, 2010

If your company has a federal prime contract of at least $100,000 OR a subcontract of at least $10,000 you are required to post a new labor notice effective today, June 21st. Executive Order 13496 and its implementing regulations, 20 C.F.R. Part 471, require Federal contractors and subcontractors, beginning on June 21, 2010, to notify employees about their rights under the National Labor Relations Act (NLRA). The NLRA is the primary law governing relations between unions and employers in the private sector, and guarantees the right of employees to organize and to bargain collectively with their employers, and to engage in other protected concerted activity with or without a union. or to refrain from all such activity.

BUDGET CUTS Are Coming … DC-Area Contractors WILL Feel It!

Tuesday, August 10th, 2010

A Department of Defense budget proposal could eliminate more than 6,100 jobs in Virginia.  Defense Secretary Robert M. Gates announced a proposed budget that will close the U. S. Joint Forces Command (JFCOM), a major employer with over 1 million square feet of real estate in Norfolk and Virginia Beach, VA.  As reported by The Washington Post on August 9, 2010, the proposal will also slash the Pentagon’s budget for military contractors over the next three years, significantly impacting the economy of the Washington region. Stephen Fuller, Director of the Center of Regional Analysis at George Mason University commented (more…)

Oracle In The Sights of Justice Department Again-Government Allegedly Overcharged

Wednesday, June 23rd, 2010

The last time we heard about Oracle, GSA  and the Department of Justice (DOJ) was back in 2006 when they agreed to settle a false claims lawsuit pertaining to GSA pricing practices non-disclosures for their recently acquired PeopleSoft software subsidiary…to the tune of $98M.

It is hard to believe, but it looks like Oracle may be in trouble again. In a case filed in May 2007 with the Federal Court in Alexandria, VA under the False Claims Act, a former Oracle employee alleges that the company did not disclose discounts it gave to its Most Favored Customers and therefore potentially overcharged the Government for products and services. (GSA contractors are required to disclose all of their pricing practices to GSA during pricing negotiations so that GSA can determine what discounts are fair and reasonable for similar/like classes of customers.)

Now that DOJ has joined the lawsuit (3+ years later), it would appear that there may be some credibility to these claims. I will be following the case closely and provide updates on the blog as they become available! Anyone care to take a guess on the amount proposed for recovery?

Feds Seek Public Input on Small Business Programs

Monday, June 21st, 2010

In April 2010, President Obama established an inter-agency Task Force charged with expanding outreach to the small business community and helping agencies meet the goal of awarding 23% of contracting dollars to small businesses.  The task force is co-chaired by the Department of Commerce, the Office of Management and Budget (OMB), and the Small Business Administration (SBA). 

The Task Force is seeking public comments on obstacles faced  by small business government contractors including problems encountered with large businesses teaming agreements, mentor-protege relationships, and small business subcontracting.  Other possible areas include small  business set-aside contracts, the 8(A) program, contract bundling, and training.  Members of the public may submit their comments to the Task Force at SB_TaskForce_Comment@sba.gov.  The comments are due by June 30th.