New Bill Forcing Government Contractors to Pay Their Taxes
That is right folks, you are hearing it again! A new bill, H.R. 1562, Contracting and Tax Accountability Act of 2015 (on a second attempt), was introduced at the end of March 2015 (which was passed by the house using a procedure called “suspending the rules”, on April 15, 2015, Tax Day) to prevent companies that are delinquent in paying income taxes from not only winning federal contract awards but also preventing them from competing. A broad overview of the bill states that it would prohibit federal agencies from awarding contracts or grants to persons or companies that have serious. Read More.
Small Business Administration Proposes Major Changes to Performance Requirements
New changes to performance requirements under the U.S. Small Business Association (“SBA”) could be applicable to your company in the near future. Proposed changes were made pursuant to Section 1651 of the National Defense Authorization Act of 2013 (NDAA), which pertains to performance requirements applicable to small businesses and socioeconomic program set aside contracts and small business contracting. One change will require that the limitations on subcontracting for set-aside contracts be evaluated based on the percentage of the overall award amount that a prime contractor spends on its subcontractors. The SBA is proposing that work performed by “similarly situated entities” is not considered subcontracted. Read More.
Can a Unilateral Modification be Considered a Government Claim?
When doing work for the government via contract and especially for contract work that extends beyond a few months, it is almost certain that a least one contract modification will need to be issued. Contract modifications can be issued for a variety of reasons, such as for a change in funding, scope, terms and conditions, or to make administrative changes. The reason for a contract modification falls under two types, either a bilateral or a unilateral modification. A bilateral modification, as defined by Federal Acquisition Regulation (FAR) 43.103, Types of Contract Modifications, is a modification that is signed by both. Read More.
SBA Proposes Rule to Establish a Mentor-Protégé Program for All Small Businesses
After much anticipation, the Small Business Administration (“SBA”) has issued a proposed rule to establish a mentor-protégé program for all small businesses. The proposed rule can be found here in its entirety. Comments are due from the public on or before April 6, 2015. Currently, the mentor-protégé program is only available to businesses certified in the 8(a) Business Development Program. The proposed rule, however, connects small businesses and set-asides (the protégé) with larger businesses (the mentors), and the current mentor-protégé program for 8(a) set-asides would roll into this larger program. The SBA commented in the proposed rule that it considered setting. Read More.
Allowable Compensation Caps: Blended or Specific Rates?
By: Robert A. Farquer , CPA, CGMA; Senior Consultant Section 702 of the Bipartisan Budget Act of 2013 (PL 113-67) reduced the contractor and subcontractor allowable compensation cap from $952,308 to $487,000 for contracts awarded on or after June 24, 2014, representing a 49 percent reduction. Calculated by the Bureau of Labor Statistics the cap will be adjusted annually to reflect the change in the Employment Cost Index for all workers. As always, contractors can pay whatever amounts they deem appropriate, but the government will only reimburse (up to) the capped amount. Previously, the National Defense Authorization Act for Fiscal Year 2012 (PL. Read More.
Do You Feel Penalty-Proof Under the Affordable Care and Service Contract Act in 2015?
By: John T.H. Carpenter ; Principal As has been the case for the past five years, turning the calendar to a new year has brought changes in employer and individual requirements under the Affordable Care Act (ACA). We have been fielding a stream of questions from employers who have employees covered by the Service Contract Act (SCA) and how SCA compliance fits in with ACA compliance. The short answer to all questions is that the implementation of ACA, which obviously impacts most employers and individuals across the U.S., has not changed any of the existing SCA requirements. It falls on the employer to. Read More.