Archive for the ‘FAR Regulations’ 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…)

Government Contracting Conference Specially Developed for Engineering Firms, Begins 9/15/10

Thursday, August 26th, 2010

Please join Venable LLP, industry experts, and federal agency representatives for a two-day conference in Washington, DC entitled “Coping with Key Changes in Federal Procurement and Project Delivery.”  The conference starts on Wednesday, September 15th and is being hosted by the American Council of Engineering Companies, (ACEC).  Confirmed speakers include Rob Burton and Paul Debolt of Venable and Tom Marcinko of Aronson & Company.  A wide range of topics will be covered including federal business development and procurement trends, “green procurements”, performance-based acquisition, and cost and price considerations.  For more information about this conference and to register please visit ACEC’s website.

Service Contract Act H&W increased

Friday, August 13th, 2010

Effective June 22, 2010, the prevailing health and welfare fringe benefits required by the McNamara-O’Hara Service Contract Act (SCA)  increased to $3.50 per hour.  The Department of Labor (DoL) issued a memorandum on June 9, 2010, announcing the change.  The new benefit rate is derived from the latest DoL Bureau of Labor Statistics, Employment Cost Index, summary of Employer Cost for Employee Compensation.

Don’t let the increase impact your bottom line – know your rights as a Federal contractor. – “Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts)” as well as FAR 52.222-44 “Fair Labor Standards Act and Service Contract Act-Price Adjustment” authorize adjustment of fixed price SCA-covered contracts when SCA wage determinations require an increase to the minimum wage or fringe benefits. Contractors are allowed an hourly adjustment equal to the new hourly fringe benefit rate less the hourly cost of the actual benefits provided by the contractor.

Do not delay; the FAR clauses also stipulate that the claim must be submitted within 30 days of the effective modification incorporating a new wage determination.

Today’s Seminars, 7/14/10 – Learn to Control and Conquer the Requirements for Your Success

Wednesday, July 14th, 2010

Conquering Federal Acquisition Regulations (July 14th, 2010, 8:30am, Aronson & Company, Rockville)

Join Aronson & Company and ABC of Metro Washington for a seminar on July 14th where our contracting experts will explain how the  government and contractors use the FAR and describe some of the most pertinent provisions.  This installment in ABC’s management series will provide a basic understanding of the FAR for companies just entering the federal market. Don’t let the FAR intimidate you. Approach your federal opportunities with the confidence that comes from knowing the “rules of the road!” Details

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Succeeding When Government Contracting Dollars Shrink (July 14th, 2010, 7:30am, Tower Club, Tysons Corner)

Federal contracting dollars have been plentiful during the current economic downturn, but all good things come to an end.  Control your destiny and create your federal roadmap for success!  Join Aronson & Company, Information Experts, Venable and our distinguished guest panelists for an informative breakfast briefing on July 14th where the panelists will provide the “coordinates” for building your roadmap to future success.   Using your leverage now will allow you to sustain and grow in the leaner times ahead. Whether your current contracts were the result of deliberate efforts or accidental circumstances, only intentional actions will ensure your future success.  If you are new to the federal marketplace, an experienced player trying to diversify, or struggling to achieve a growth milestone, this program will help you design your own federal roadmap.  Details

Also, check out our recent blog posting for more on this topic: Threats Loom for Government Contractors.  (more…)

ARRA Reporting Requirements Increased AGAIN

Tuesday, July 6th, 2010

Just when we thought that the ARRA reporting requirements couldn’t get more intensive and despite the fact that over 80% of the Recovery Act funds have already been spent, an interim rule to change FAR clause 52.204-11 went into effect July 2nd requiring first-tier subcontractors with awards above $25,000 to report on job creation and retention. This new provision will apply only to awards issued after July 2, 2010. Although the rule requires subcontractors to capture the job data and report, prime contractors should be aware of the provision as they are responsible for flowing this requirement down to its first-tier subcontractors and submitting their subcontractors’ data to FederalReporting.gov.

Additionally, prime contractors will now be required to file reporting for new ARRA contracts within 10 days of the end of the quarter in which the contract is awarded, as opposed to the first quarter in which the contract is invoiced. The interim rule is open for comments through August 31, 2010. Welcome to the Brave New World – next stop, DNA samples?

DON’T FORGET, YOUR ARRA REPORTING FOR APR-JUN IS DUE JULY 10th!

Government Expands Requirements for Market Reseach

Thursday, July 1st, 2010

The Federal Acquisition Regulations have been revised to significantly expand the requirements to conduct market research for both contracting officers and contractors.  Specifically, contracting officers will now be required to conduct market research prior to awarding any IDIQ contract for non-commercial items that exceeds the simplified acquisition threshold.  Also, contractors with prime contracts that exceed $5 million will now be required to conduct market research prior to the award of any subcontracts exceeding the simplified acquisition threshold. 

These revisions are contained in FAR CASE 2008-007  published in the Federal Register, Volume 75, Number 115 dated June 16, 2010.  The new requirements will apply to any contract awarded after that date.   Though the new requirements are already effective, the FAR Counsel will accept public comments until August 16, 2010. 

This change is especially important to contractors that maintain or desire to acquire an approved purchasing system.  The requirement to conduct market research will undoubtedly become an element of the Contractor Purchasing System Review or CPSR.  Thus most contractors will need to revised their purchasing policies and procedures to ensure the required market research is conducted and documented in the file.  The “rules” for when and how to conduct market research are contained in FAR Part 10.

GSA Schedule Holders, Prepare for Goldstar Mandatory Modification!

Tuesday, June 22nd, 2010

As part of Phase II of its Goldstar Initiative, GSA will be issuing mandatory modifications to ALL Schedule Contracts on June 24th to baseline its contractors’ current terms and conditions, along with negotiated exceptions. This process will be much more onerous then a standard mandatory modification. It is extremely important to read the instructions and complete the modification carefully. (more…)

Employee Right to Organize Notifications to be Required

Wednesday, June 2nd, 2010

Effective June 21, 2010, most Government contractors will be required to post notices in the work place advising employees of their rights under the National Labor Relations Act.  The final rule was published on May 20, 2010 as 29 C.F.R. Part 471.  The notice addresses (1) the employees right to join an union and bargain collectively, (2) ways in which employers may violate the employees rights, and (3) remedies available to employees who feel that their rights have been violated.  The required text is included in Appendix A to Subpart A of the final rule.  Contracts below the simplified acquisition threshold are exempt. 

The Department of Labor is hosting a webinar on the new rule on June 3, 2010 from 2 to 3:30.  Here is a link to the registration page  for this webinar.

Additional Compliance Requirements Added to Most GSA Schedule Contracts

Friday, April 30th, 2010

Most GSA Schedule Contract holders are now required to adhere to additional compliance requirements due to new FAR clause 52.203-13 “Contractor Code of Business Ethics and Conduct”.  This FAR clause has been added to most GSA Schedule Contracts and requires affected contractors to a adopt a Code of Conduct for all employees, implement a compliance program and self-report certain ethical violations of the Code to the Government.  Large businesses are also required to implement a robust set of internal controls.

The “Contractor Code of Business Ethics and Conduct” FAR clause is not required to be added to pre-existing contracts nor is it required for contracts of less than $5 million.  So the addition to GSA Schedule contracts has generated some controversy.  For more information on the nature of this clause and the issues involved in applying it to GSA Schedule contracts please read Tom Marcinko’s latest article: A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause. (more…)

Contractors’ Authority to Make GSA Schedule Purchases Expanded Under FAR Part 51 Deviation

Tuesday, April 13th, 2010

If your company has ever received an order from a Federal Contractor requiring your GSA rates, you may have wondered…can they really do that – and – if they can, am I violating my Basis of Award? In accordance with FAR Part 51.1, Contractor Use of Government Supply Sources, contractors can be given the authority to make purchases against Federal Supply Schedule (FSS) contracts on behalf of the Government.

This permission was previously restricted to cost-reimbursable contracts and limited scenarios “determined to be in the best interest of the Government.” Recently, however, a deviation was issued to FAR Part 51 expanding the circumstances in which contractors can purchase off other companies’ GSA Schedule contracts, which is quickly being incorporated into the GSA Schedule Solicitations. So, when can another contractor purchase off your GSA Schedule and what are the pricing and reporting implications? (more…)