Archive for August, 2009

IRS Alerts Public to New ARRA-related Scam

Monday, August 31st, 2009

The Making Work Pay Refund phishing e-mail, which claims to come from the IRS, references the president and the Making Work Pay provision of the 2009 economic recovery law (ARRA/Stimulus). It says that there is a refundable credit available to workers, consumers and retirees that can be paid into the recipient’s bank account if the recipient registers their account information with the IRS. The e-mail contains links to register the account and to claim the tax refund.

In reality, most taxpayers receive their Making Work Pay tax credit, which was designed for wage earners, in their paychecks as a result of decreased tax withholding, not as a lump sum distribution from a federal fund. Additionally, consumers and retirees who are not wage earners are not eligible for this tax credit.

The Internal Revenue Service reminds consumers to avoid identity theft scams that use the IRS name, logo or Web site in an attempt to convince taxpayers that the scam is a genuine communication from the IRS. Scammers may use other federal agency names, such as the U.S. Department of the Treasury.

In an identity theft scam, a fraudster, often posing as a trusted government, financial or business institution or official, tries to trick a victim into revealing personal and financial information, such as credit card numbers and passwords, bank account numbers and passwords, Social Security numbers and more. Generally, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.

What to Do

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Mark Your Calendars – Upcoming GSA Contracting Events

Friday, August 28th, 2009

September 15, 2009-GSA Schedules Training Webinar. The Office of Small Business Utilization conducts monthly training on the process of obtaining a GSA schedules contract. This free webinar is designed to encourage and support small businesses interested in obtaining a GSA Multiple Award Schedules contract. (Online)

September 24, 2009-Telework Exchange Town Hall Meeting. GSA sponsors this educational forum, along with the private sector, for federal government employees to learn about the latest technology and best practices used to implement telework programs. (Washington, DC)

October 22, 2009-Access to Success Small Business Conference. This powerful one-day conference features procurement and marketing workshops and provides an opportunity to meet and network with GSA program managers, building managers, leasing specialists, senior procurement employees, as well as small business advocates from DoD and other federal agencies. Attendees will also meet prime contractors seeking to partner with experienced small businesses to meet or exceed their company’s subcontracting goals. (Washington, DC)

December 1, 2009-Marketing to the Federal Government Webinar. This free webinar is designed for vendors who have already obtained a GSA Multiple Award Schedules contract and provides marketing tips and strategies for vendors with government contracts. Participants will learn techniques and resources to assist them in marketing to federal government agencies. (Online)

GSA Issues Travel Per Diems for GFY 2010

Thursday, August 27th, 2009

Contractors who charge travel expenses to their government contracts should be aware that the General Services Administration has released the GFY 2010 per diem rates.  These rates, which will be effective starting on October 1, 2009, will govern reimbursement of contractor CONUS travel expenses.  Based on the state of the economy, it is not surprising that most rates will increase only marginally.  In fact, in some “high expense” areas, the per diems will actually decrease slightly.   The new meals and incidentals per diems will range from $46 to $71, depending on location.  The incidental expense rate will increase from $3 to $5.   For more detailed information see the GSA Per Diem Website.

NIH Stimulus Spending Includes Provocative Sex Research

Wednesday, August 26th, 2009

The stimulus package is living up to its provocative name by funding a bacchanalia of behavioral sex research, a NY Post analysis reveals. The next fiscal year is set to be one of the friskiest ever in the nation’s science labs, as researchers probe the ins and outs of sex patterns among humans and even some of our four-legged friends. Among the most titillating grants awarded by the National Institutes of Health (NIH) are studies that would:  Examine “barriers to correct condom use” at Indiana University, at a cost of $221,000.  Study “hookups” among adolescents at Syracuse University. Study’s cost: $219,000 (source: nbcwashington.com / NY Post).  NIH stimulus grants can be searched by congressional district or institution.

GSA Expands State and Local Goverments’ Schedule Access for Public Health Emergencies

Tuesday, August 25th, 2009

Likely in response to the H1N1 “swine” flu pandemic, GSA announced today that it is expanding state and local governments’ ability to purchase from MAS Schedules during Public Health Emergencies (PHE) declared by the Secretary of Health and Human Services. This policy change allows state, local, territorial, and tribal governments using Federal grant funds to purchase via all GSA Federal Supply Schedules in support of activities to prevent and respond to PHEs .

Like the Disaster Recovery and Cooperative Purchasing Programs, the PHE initiative is a voluntary program. GSA Schedule contract holders can decline state/local orders at their discretion, as long as they do so within five days of receipt of a task order (or within 24 hours for a credit card order). For more details about this new program, including a full list of included parties, click here. You can also click here to read about all of GSA’s State and Local Government Programs.

Overseas Contracts – Are Your Employees Adequately Insured?

Monday, August 24th, 2009

by Sara K. Payne, CIC, Senior Vice President/Office Manager, Rutherfoord International

Federal contractor employees working outside the United States are entitled to medical and related benefits under the Defense Base Act (DBA). DBA benefits include disability compensation, medical expenses related to the compensable injury or death, medical evacuation and repatriation, and a burial benefit for deceased employee of $3,000.

Defense Base Act coverage is a unique coverage which protects both employers and employees. The Defense Base Act was passed by Congress in 1941 under Public Law 208 in preparation of World War II. US Domestic WC coverage would not extend to protect the private contractors working in Britain under the “Lend Lease” Act.

The law extends the coverage of the “Longshore and Harbor Workers Compensation Act” to civilian employees at military, air and naval bases in foreign countries. Since its passing, the law has been amended to include all US government-funded contracts outside the United States. All employees regardless of their “country of origin” are entitled to DBA benefits. The only exception would be if the Contracting Officer obtained a waiver from the Department of Labor and an “alternative workers compensation” benefit is purchased for the “waived” employees. (more…)

The Global Economy May Be Suffering but Federal Mergers and Acquisitions Lead the M&A Market

Friday, August 21st, 2009

The mergers and acquisitions marketplace is very optimistic about the M&A outlook for the federal sector, particularly in the middle-market. History shows that increased economic and industry turbulence have been key drivers of M&A activity in the federal sector. Even throughout the current economic downturn, the federal services M&A market, while down from record historical levels, has been a leader in U.S. M&A activity. Despite a slight decrease in volume, deals continue to get done at attractive prices and terms. Historically, the federal sector has outperformed the S&P 500 during periods of prolonged economic downturn, offering a “safe harbor” from market dislocations that depress economic growth. The top four aerospace & defense contractors have outperformed the S&P 500 by an average of 42% during the past five US economic recessions. Click to read the August’s The Mid-Market Ticker for more of Aronson Capital Partners’ view of the federal M& A market.

Required Registration Site for Contractors Receiving Stimulus Funds Now On-Line

Thursday, August 20th, 2009

Effective on August 17th, contractors receiving Recovery Act (ARRA) funded awards are able to register their organizations on the FederalReporting.gov website.   In order to register, a contractor must have their DUNS number available and be registered in CCR (Central Contractor Registration).  Acceptance of ARRA-funded projects comes with a complex reporting requirement. Contractors must register or enroll in this site as a precursor to filing the required reports.  The first set of reports will be due by October 10th.  A large volume of reports is anticipated so contractors are strongly encouraged to register in advance and report as early as possible.  Click the link for answers to FederalReporting.gov Frequently Asked Questions.  The Government has established a toll free line, 877-508-7386, to answer any questions contractors may have about the registration or reporting process.  Let us know how the Recovery Act is affecting you; post your comment or question on Aronson FedPoint today!

GSA Obligates $1 Billion In ARRA Funds To Construction Projects

Wednesday, August 19th, 2009

The American Reinvestment and Recovery Act (ARRA) appropriated $5.5 billion to GSA to convert existing government buildings into high performance green buildings and to build new energy efficient federal buildings.

GSA set a goal to obligate the first $1 billion dollars by July 31st. On meeting the goal, GSA Acting Administrator Paul Prouty said, ” Given the intent of the Recovery Act to stimulate the economy and put people back to work, we set a very aggressive goal to obligate our first $1 billion by the end of July.  With the goal met, our focus now is to continue to get shovels in the ground as quickly as possible.”

The remaining $4.5 billion in ARRA construction funds should be obligated by September 30, 2011.

The following is a listing of the approximately 120 buildings that will be receiving the $1 billion in obligated funds: (more…)

New White Paper! Maryland Employers Beware, Independent Contractor Status Challenged

Tuesday, August 18th, 2009

The State of Maryland is looking for tax revenues and thinks that misclassified independent contractors are ripe with opportunity.  Maryland’s Governor Martin O’Malley (by executive order No. 2009.19) recently created a multi-agency Task Force that will coordinate investigations into, and enforcement of, work place fraudulent practice. The executive order defines work place fraud as a practice whereby employers improperly classify “employees” as “independent contractors”. The purpose of the task force is to assist in recouping tax revenue, such as unemployment insurance taxes, wage withholding, etc., lost because of this misclassification of employees as independent contractors.

The Task Force is an expansion of earlier legislative efforts to address this same issue specifically in the construction and landscaping industries (see Maryland’s Workplace Fraud Act of 2009). While the Workplace Fraud Act of 2009 was limited to a specific industry, the Governor’s Task Force will have jurisdiction over all employers in all sectors. The Task Force has also been directed to propose legislative changes that will enhance the investigation, enforcement and prevention of misclassification of employees as independent contractors. Bean, Kinney & Korman, P.C. provide some updated Jan 2010 insight on regulatory and legislative actions at the federal and state level. (more…)