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Government Contractors

Court of Federal Claims Reverses OHA Decision finding Affiliation

Veterans Technology, LLC (“Vet Tech”) is a joint venture whose stock is owned 49 percent by a company named MDW and 51 percent by Defense Acquisition, Inc. (“DAI”). MDW was formed in 2012 by four individuals who were then employed by Paradigm Technologies, Inc. However, on January 30, 2011, ECS Federal, LLC (“ECS”), acquired Paradigm, but the acquisition did not close until January 1, 2012. Subsequently, Paradigm became a wholly owned subsidiary of ECS during calendar year 2012, and all Paradigm contracts were subsequently novated to ECS. Shortly after Paradigm was acquired by ECS, the four employees informed ECS of. Read More.

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DODIG Report on DCMA Actions Regarding DCAA Incurred Cost Audit Reports

In a recent report from the Department of Defense Office of Inspector General (“DODIG”) (DODIG-2017-055, dated February 9, 2017) the DODIG found several instances when the Defense Contract Management Agency (“DCMA”) contracting officer’s (“CO”) actions did not comply with Federal Acquisition Regulation (“FAR”), DoD Instruction 7640.02, or DCMA instructions. The findings resulted from a review of 22 incurred cost reports judgmentally selected from a pool of 1,072 Defense Contract Audit Agency (“DCAA”) incurred cost reports issued between September 2013 and July 2015. In its review, the DODIG evaluated the appropriateness of DCMA actions on DCAA findings reported in the 22. Read More.

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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.

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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.

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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.

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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.