Cybersecurity Requirements: Another Challenge for Government Contractors
With all the recent data security breaches, it is not surprising that the U.S. Government is starting to crack down on cybersecurity for their government contractors. Approaches the U.S. Government are taking include issuing laws, regulations and standards that require contractors to take security measures for safeguarding their data. On July 7, 2014, President Obama signed into law the Intelligence Authorization Act for Fiscal Year 2014 (Public Law 113-126). This law requires intelligence contractors with security clearances to promptly report network and information system breaches, and provide government investigators access to the contractors’ systems that have been comprised. Additionally, the. Read More.
DoD Inspector General Issues Two Reports on DCAA Quality Control
On August 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (MRD) 14-PAS-014(R) , captioned ”Audit Guidance on Removal of Modified GAGAS Statement in Audit Reports”. As background for this MRD, Generally Accepted Government Auditing Standards (GAGAS) require audit organizations to obtain an external peer review at least once every three years. For DCAA, the external reviews are performed by the Department of Defense’s (“DoD”) Inspector General. In August 2009, the Inspector General revoked its previous approval of DCAA’s quality control program. As a consequence, since August 2009, DCAA has been unable to state that it performed its audits in accordance with. Read More.
Significant Proposed Changes to DFARS Business System Monitoring Requirements
On July 15, 2014, the Department of Defense (“DoD”) issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) on government contractor business system requirements. The comment period for the proposed change ended on September 15, 2014. The proposed rule requires that contractors begin annual self-evaluations and reporting on their accounting system, material management and accounting system (MMAS), and estimating system, for those contractors required to maintain approved systems in accordance with the DFARS business system requirements. In addition, a Certified Public Accountant (CPA) audit is required to be performed by an independent firm of the contractor’s. Read More.
Topics: Accounting Systems, Audit, Defense Contract Management Agency "DCMA", Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", Earned Value Management System "EVMA", Estimating Systems, Government Contractors, Material Management and Accounting System "MMAS", Property Management System Evaluations, Purchasing Systems
GSA Looks to Consolidate Professional Services Schedules
The General Services Administration (“GSA”) has announced its intention to consolidate Multiple Award Schedule (MAS) offerings over the next year. GSA has over 4,400 professional services contracts across eight different schedules. As we have reported in prior posts regarding GSA, the administration is looking for new ways to reduce its costs amid ever-growing budget shortfalls. In addition to cutting contracts who fail to meet the minimum sales requirements, GSA is looking to consolidate what it is now considering to be redundant schedules. According to GSA, there are approximately 527 contractors who hold more than one professional service schedule contract. These. Read More.
Rule Updated on Whistleblower-Related Legal Costs
In June 2013, Cherry Bekaert notified you of coming changes to whistleblower protection laws for government contractors. Subcontractors were being given protection under whistleblower laws, and the Federal Acquisition Regulation (FAR) was amended at that time to generally not allow legal fees or other expenses related to whistleblower protection claims. This past July, multiple government agencies, the Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”), finalized a rule to update FAR cost principle 31.205-47, related to the allowability of legal costs. The change implements a section of the National Defense Authorization Act 2013. Read More.
Topics: Department of Defense "DoD", False Claims Act, Federal Acquisition Regulation "FAR", General Services Administration "GSA", Government Contractors, Legal Costs, National Aeronautics and Space Administration "NASA", National Defense Authorization Act 2013, Whistleblower
GSA Leading the Charge for Reusing and Recycling Electronics
The General Services Administration (“GSA”) is reviewing comments on proposed regulations to reuse and recycle electronics. The proposed regulations identify a variety of methods for disposing of functional and nonfunctional electronics owned by federal agencies. Besides the obvious options of reusing them within the agency, transferring them to other agencies, or recycling them with certified recyclers, another option, which GSA has already begun using, is manufacturer take-back programs. The manufacturer take-back programs allow federal agencies to return used electronics to the original seller. In April 2014, Kevin Kampschroer, Deputy Senior Sustainability Official for GSA, reported to a Congressional committee on. Read More.
Topics: Electronic Product Environmental Assessment Tool "EPEAT", Electronics, Environmental Protections Agency "EPA", Federal Agencies, General Services Administration "GSA", Manufacturer Take-Back Programs, Recycle, Sustainability