Department of Labor Increases the SCA Health & Welfare Rate and Establishes Two Other Rates
On July 25, 2017, the Wage and Hour Division of the U.S. Department of Labor updated and increased the McNamara-O’Hara Service Contract Act (“SCA”) Health and Welfare (“H&W”) Fringe Benefit to $4.41 per hour (i.e., $176.40 per week or $764.40 per month). The increase will be effective as of August 1, 2017. This is an increase of 14 cents per hour, up from 2015-2016 rate of $4.27. The new update also included a rate for those employees who fall under Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. A new reduced rate of $4.13 per hour (i.e., $165.20. Read More.
Topics: Department of Labor, Executive Order, McNamara-O'Hara Service Contract Act (SCA), Service Contract Act Health & Welfare Fringe Benefits Rate, Service Contract Act Health & Welfare Rate, Wage and Hour Division
The Fiscal Year End Could Lead to a Government Shutdown
With the memory of the 2013 government shutdown still fresh in everyone’s minds, there is serious potential for a reoccurrence as the 2017 fiscal year draws to a close. While for many Americans the prospect of a government shutdown may just mean skipping a trip to their favorite national park, it could lead to a slew of operational and financial issues for the government contracting industry. For those involved in the latter demographic, Alan Chvotkin, executive vice president and counsel at the Professional Services Council (“PSC”), states, “Now is the right time to prepare.” The timing of this fiscal year’s. Read More.
The Potential Market Shifts of Buy American and Hire American
On April 18, 2017, President Trump issued Executive Order 13788, “Buy American and Hire American.” Executive Order 13788 aims to “create higher wages and employment rates for workers in the United States, and to protect their economic interests” by decreasing American reliance on foreign workers and products. While the “Buy American” and “Hire American” aspects of the executive order have a common underlying theme, each facet will have significant impacts on policy changes independent of each other. In accordance with the executive order, heads of all agencies have until September 15, 2017, to: Assess the monitoring, enforcement, and implementation of,. Read More.
Are You Ready to Comply with NIST 800-171?
Are you a Department of Defense government contractor? Are you ready to comply with the National Institute of Standards and Technology (NIST) Special Publication 800-171? Recent FAR and DFARS clause updates mandate that many government contractors comply with these IT security standards by December 31, 2017. NIST SP 800-171 requirements are referenced and added to DoD contracts using the DFARS 252.204-7012 regulation. However, not just DoD contracts require compliance. If you provide services to the U.S. federal government, you must provide documentation and evidence as to how your organization is protecting information systems which contain government data – which includes. Read More.
Revenue Recognition Implementation: Getting Into the Details
By: Craig Hunter , Partner In our last newsletter, we discussed the highlights of the new revenue recognition standard and what everyone should begin to expect. In this article and future articles, we want to go into more detail about the specific requirements of the standard. As mentioned in the previous edition, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers: Topic 606. The new standard creates a whole new codification topic (ASC 606), and introduces in a new era of revenue recognition by replacing hundreds of pages of industry specific guidance with a. Read More.
Use of Cost Realism in Proposal Evaluations
By: Curt Smith, Manager, Government Contractor Services Group When negotiating a contract price, the primary concern of contracting officers (“CO’s”) should be the price that the government will pay to obtain the required supplies or services from a responsible contractor. Their objective should be to negotiate a contract type and price (or estimated fee and cost) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical contract performance. To achieve this goal, the Federal Acquisition Regulation (“FAR”) requires agencies to establish a negotiating objective based upon a price or cost analysis.. Read More.