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Government Contractors

No Changes to the Department of Labor SCA Health & Welfare Rate

As far back as many can remember, there has been a yearly change in the Health & Welfare (“H&W”) rate. Last summer for instance, the H&W rate jumped $0.25 from $4.02 per hour to $4.27 per hour. However, as of July 28, 2016, the Department of Labor (“DOL”) Wage and Hour Division has made no changes to the Service Contract Act (“SCA”) (“H&W”) rate. The DOL has also issued a memorandum that retains the H&W rate at $4.27 for presumably next year. With the exception of citing the Bureau of Labor Statistics Employment Cost Index, the memorandum provides no other commentary as. Read More.

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New NISPOM Requirements to Protect Against Insider Threats

In May 2016, the Department of Defense (“DoD”) published Change 2 to DoD 5220.22-M, National Industrial Security Operating Manual (“NISPOM”). This change now requires government contractors who have facility security clearances and are otherwise subject to the requirements of NISPOM, to establish and maintain an insider threat program. Insider threats are not a new concern, but the concern is greater today than ever before. With information leaks such as those created by Edward Snowden at the National Security Agency making world headlines, no company can afford that level of exposure or anything similar to it. Cherry Bekaert recently published blogs on the need for protecting. Read More.

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Kingdomware and its Impact on Small Business Contracting

By: John Ford , Senior Consultant, Government Contractor Services Group In a rare move, on June 16, 2016, the Supreme Court (“the Court”) issued a decision in a bid protest, Kingdomware Technologies, Inc. v. U.S., No 14-916, that can affect the way the government, particularly the Department of Veterans Affairs (“VA”), contracts with small business concerns. This case dealt with the issue of whether the Rule of Two in the Veterans Benefits, Health Care, and Information Technology Act of 2006 (“the Act”) applies to orders issued against General Services Administration’s Federal Supply Schedules (“FSS”) contracts. The Court held that it does. For. Read More.

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SBA Final Rules on Subcontracting Limitations and More

By: Ken Bricker , Partner On May 31, 2016, the U.S. Small Business Administration (“SBA”) issued its long-awaited final rule that implements certain small business-related provisions of the National Defense Authorization Act of 2013 (“NDAA”). The final rule includes key changes in the Limitations on Subcontracting regulation. In most cases, the final rule was adopted with little or no changes to the provisions of the proposed rule issued on December 29, 2014. However, in response to public comments on the proposed rule, SBA made important changes, including amendments regarding subcontractors that qualify as “similarly situated” for purposes of the limitations on subcontracting,. Read More.

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FASB Releases Updates on Accounting for Leases

By: Sara Crabtree , Senior Manager Previous lease accounting practices have been criticized for failing to provide accurate financial statements. Those practices did not require the recognition of the assets and liabilities resulting from operating leases to be on the balance sheet. On February 25, 2016, the Financial Accounting Standards Board (“FASB”) released Topic 842, Leases. The purpose of this update is to increase the transparency and comparability of entities which engage in leasing activities who previously kept their leasing obligations off the balance sheet. The Board’s intention is to require enough information on an organization’s financial statements so users may have. Read More.

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Expanding the SBA Mentor-Protégé Program

On July 25, 2016, the Small Business Administration (“SBA”) issued a much-anticipated final rule regarding the government-wide mentor-protégé program for small businesses. All small businesses, not only 8(a)s, will now be able to participate in the mentor-protégé program. The changes will benefit both large and small businesses. Large businesses will now have a larger pool of small businesses to mentor, and additional disadvantaged companies now have the opportunity to participate. The rule specifically states that the mentor-protégé program will now have four new programs: Small businesses; Women-owned small businesses; Service-disabled, veteran-owned small businesses; and Historically Underutilized Businesses. Other notable changes. Read More.

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