DoD Proposes Changes to Cost or Pricing Data Rules for Small Businesses
On August 30, the Department of Defense (“DoD”) issued a proposed rule to implement a section of the National Defense Authorization Act for fiscal year 2016 that provides exceptions from the certified cost and pricing data requirements, and from the records examination requirement for certain awards to small businesses or nontraditional defense contractors. The proposed rule would amend the Defense Federal Acquisition Regulation Supplement (“DFARS”) to provide an exception from cost or pricing data for contracts, subcontracts, or modifications of contracts or subcontracts valued at less than $7.5 million. This exception would be applicable to small businesses or “nontraditional” defense contractors,. Read More.
Topics: Cost Accounting Standards "CAS", Cost Data, Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", National Defense Authorization Act "NDAA", Pricing Data, small business
Q&A: Lost in Time – The Statute of Limitation and Time Limits on Government Contracts
Approximately a year ago, we included an article in our newsletter concerning the six-year statute of limitations (“SOL”) on the assertion of claims under the Contract Disputes Act (“CDA”). This is an area of continuing confusion because it is still developing. In addition to the CDA six-year period, there are other time limits on government contractor actions in regard to government contracts. In a question-and-answer format, this blog will attempt to clarify some of the questions regarding the CDA six-year SOL and other timeliness issues. Q: Does a claim have to be for money? A: No. A claim can be. Read More.
Guidance Issued on Treatment of “Blended” Compensation Caps in Incurred Cost Submissions
On June 30, 2016, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 16-PSP-007(R), Audit Alert on Handling Incurred Cost Proposals Using a Blending Approach of Compensation Caps. In this memo, the DCAA discusses how auditors are to treat new and existing incurred cost submissions (“ICS”) that include blended compensation caps, in the absence of an advance agreement. One of the key points of the memorandum is that DCAA should not delay the adequacy review of an ICS if an advance agreement is not present. The audit team must continue with the adequacy review. During the adequacy. Read More.
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.
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.
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.