DCAA Issues new Guidance on Establishment of Provisional Billing Rates
On June 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 14-PPS-012(R) Guidance on Establishing Provisional Billing Rates . The new guidance is effective October 1, 2014, but early implementation is encouraged. This new guidance should help to ease issues that have arisen between DCAA and contractors regarding a contractor’s obligation to submit a proposal to establish billing rates. In the past, some of our clients have had DCAA auditors cite them for having deficient accounting systems because the contractor did not submit a “timely” proposal to establish billing rates. This was inappropriate because there is no specific requirement in the FAR for a contractor to submit. Read More.
Proposed Rule Prohibits Award of Defense Contracts for Companies Who Violate the Fair Labor Standards Act
If your business violated the Fair Labor Standards Act (“FLSA”) within the past five years, your company may be barred from receiving new defense contracts for a period of one year. The Department of Defense Appropriations Act (H.R. 4870) for fiscal year 2015 is expected to provide funding of $491 billion for FY 2015, which is a modest one percent increase from the prior year enacted budget. Section 10030 of the act is difficult to interpret, but essentially states that any person who has violated the FLSA within five years may not receive a contract using funds available by the. Read More.
Changes to ALL Compensation for Government Contractors
As part of the 2013 Bipartisan Budget Act, Congress reduced the contractor and subcontractor compensation cap from $952,308 to $487,000, a 49 percent reduction. The cap will be adjusted annually to reflect the change in the Employment Cost Index for all workers as calculated by the Bureau of Labor Statistics. As always, contractors can pay whatever amounts they deem appropriate, but the government will only reimburse (at the most) to the cap. Previously, Congress, in the 2012 National Defense Authorization Act, applied the ceiling on reimbursable pay to all Department of Defense (“DoD”), Coast Guard, and National Aeronautics and Space. Read More.
Topics: 2012 National Defense Authorization Act, 2013 Bipartisan Budget Act, Administrator of NASA, Administrator of the General Services Administration, Armed Services Board of Contract Appeals "ASBCA", Bureau of Labor Statistics, Coast Guard, Compensation, Congress, Contractor, Defense Contract Audit Agency "DCAA", Department of Defense "DoD", Employment Cost Index, Federal Acquisition Regulation "FAR", Government Contractors, GSA, National Aeronautics and Space Administration "NASA", Secretary of Defense, subcontractor, United States Court of Federal Claims, Veternas Administration "VA"
New DoD Requirement to Perform its own Price Reasonableness Determination
On March 13th of this year, the Office of the Under Secretary of Defense for Acquisition Technology and Logistics issued a memorandum directing contracting officers to comply with a deviation from the Federal Acquisition Regulation (“FAR”) 8.404(d). The class deviation is applicable to Department of Defense (“DoD”) entities buying off Schedule contracts and remains in effect until the language is incorporated into the Defense Federal Acquisition Regulation Supplement. This deviation provides that “GSA has determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, to be fair and reasonable for the purpose of establishing. Read More.
Topics: Blanket Purchase Acquisitions "BPA", Defense Federal Acquisition Regulation Supplement, Department of Defense "DoD", Federal Acquisition Regulation "FAR", Government Contracting, GSA, Office of the Under Secretary of Defense for Acquisition Technology and Logistics, Schedule Contracts
SBA Adjusts Size Standards
On June 12, 2014, the Small Business Administration (“SBA”) published an interim rule with request for comments in the Federal Register making inflation adjustments to its revenue-based size standards. The new size standards become effective on July 14, 2014. Parties interested in making comments on the interim rule must submit their comments by August 11, 2014. SBA policy is to review its revenue-based size standards every five years to determine if an adjustment for inflation is warranted. This does not mean that the size standards will be revised every five years based upon specific criteria as the Truth in Negotiations Act threshold. Read More.
Opportunities for Small Businesses – SBIR Program
The Small Business Innovation Research (“SBIR”) program (“the Program”) enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. The mission of the Program is “to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.” High-tech companies that meet the eligibility requirements should heavily consider exploring the availability of federal government grants and contracts through this Program. The eligibility requirements include: business must be for-profit; be independently owned and operated in the United States; have less than 500 employees;. Read More.