In August 2012 Defense Procurement and Acquisition Policy (DPAP) issued Class Deviation 2012-O0014 which implemented accelerated payments to prime contractors, who were in turn, to accelerate payments to their subcontractors. On February 21, 2013, Richard Ginman, Director, DPAP, issued a letter which rescinded Class Deviation 2012-O0014. This is only the beginning of the effects of sequestration.
The payment acceleration policy was implemented to assist with the cash flow of all small-business contractors, whether they are prime contractors or subcontractors to non-small-businesses. While the policy of accelerating payments has been rescinded the DoD will continue with the policy Continue reading »
GSA’s eOffer/eMod application for online contract management has expanded the types of Digital Certificates accepted for system access and contract signature to include Department of Defense (DOD) External Certificate Authority (ECA) certificates. Previously only ACES Business Representative Certificates were acceptable. Digital certificates create an electronic identity that ties the certificate-holder to the company they work for. As noted on the GSA eOffer/eMod webpage: Continue reading »
Sequestration, the $1.2 trillion in automatic federal spending cuts scheduled to take place on January 2, 2013 as part of the Budget Control Act of 2011, could be a significant issue for more than 2.1 million voters employed by government contractors. If the cuts go into place as planned, these voters could ostensibly expect to lose their jobs right before or shortly after the holiday season. A George Mason University study recently concluded that 1.1 million people working on Department of Defense-related spending contracts could lose their jobs, as well as 1.05 million jobs from nondefense-related contracts.
While both sides of the political spectrum agree that sequestration is a problem, they differ on how to solve the impending crisis, which could send the country back into a recession. As one might expect, Republicans would like to see stronger cuts to social programs, while the left is aiming to raise taxes and reduce corporate subsidies in order to get closer to a workable budget. Continue reading »
Per a Department of Defense memo dated 8.21.12, a Class Deviation has been granted exempting contractors and contracting officers from specific CCR and ORCA [now SAM] requirements until further notice and resolution of SAM performance issues. Click here to read the full DoD memo which provides guidance on when CCR (SAM) registration is not required, when CCR (SAM) registration will not be checked, and when an expired ORCA (SAM) record will be acceptable. Also of note, GSA has reestablished the EPLS website (www.epls.gov) to provide contracting officers the ability to ensure a prospective contractor is not actively excluded from procurement actions.
If you have tried to update your company’s CCR or ORCA information lately, you’re probably ready to pull your hair out. The problem is SAM (System for Award Management) is all hosed up. SAM intended to consolidate eight acquisition databases, including the Central Contractor Registration (CCR), the Online Representations & Certifications Application (ORCA), the Past Performance Information Retrieval System (PPIRS) and five others launched July 30th, then went offline for maintenance until August 6th. SAM went back up Aug. 7, but with continued slow performance and other issues.
Prodded by complaints from the Chief Acquisition Officer’s Council, on August 7th GSA issued IBM an official Notice of Concern telling the company to develop a plan of action and milestones for how they will make SAM work more smoothly
Predictably, and as previously reported in this blog, suspensions and debarments continue to increase. According to the Interagency Suspension & Debarment Committee, there were 4,200 suspensions, debarments, and proposed debarments in 2010 compared to 2,700 in 2009. According to Federal News Radio, at least for the Department of Defense, the increase continued in 2011. The military departments plus Continue reading »
UPDATE – Federal Acquisition Regulations Updated with Cost Accounting Standards Applicability Threshold Increase
On December 30, 2011, we communicated that the Cost Accounting Standards (CAS) Board increased the CAS threshold from $650,000 to $700,000. On May 10, 2012, the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a final rule amending the Federal Acquisition Regulation (FAR). The rule was posted in the Federal Register on May 10, 2012. Note that this is a change from Continue reading »
As reported in the Federal Times, Austin, Texas — DoD Contractors will be asked to provide more information about costs when bidding on contracts as the Defense Department looks for more “cost-conscious” contractors, said Shay Assad, the department’s pricing policy chief.
Contracting officers are being told to analyze more thoroughly the costs companies propose and to justify the contract decisions they make, Shay Assad told about 250 federal and private-sector contract managers at the National Contract Management Association aerospace and defense conference here. Continue reading »
DoD publishes FINAL Defense Business Systems Rule; Treasury Issues Internet Payment Platform Proposal
The Defense Department published in the Federal Register the final rule on Defense Business Systems, effective immediately. The rule makes fourteen changes to the current interim rule; of significance:
- DFARS 215.407-5-70(d) is removed. The criteria for maintaining an acceptable estimating system have been relocated to the clause at 252.215-7002, Cost Estimating System Requirements.
- DFARS 242.302(a)(4) has been deleted and an additional contract administration function to approve or disapprove contractor business systems has been added at DFARS 242.302(a)(S-74).
- The term “cost” has been replaced by “cost-reimbursement,” as appropriate, in DFARS 242.7000(b)(1) and DFARS 252.242-7005(e). Continue reading »
The Department of Defense (DoD) is proposing to amend the DFARS (Defense Federal Acquisition Regulation Supplement) to document the current practice of using statistical sampling to approve interim invoices. The rule clarifies that interim invoices not chosen as part of the sample to be reviewed will be considered provisionally approved for payment subject, of course to any later audit of the actual costs incurred. Continue reading »
On December 21, 2011 Congress has presented the National Defense Authorization Act for Fiscal Year 2012 (“Act”) to the President. This act is the annual bill which establishes the budget and activities for the Department of Defense. While there are some highly controversial topics within the bill, namely the detention of terrorism suspects, there are several key provisions which directly impact Government contractors.
The key provisions we are concerned with are: Continue reading »
What We Are Writing
- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)