Improvements to Subcontracting
On July 14, 2016, the Federal Acquisition Regulatory Council published a final rule in Federal Acquisition Circular 2005-89, effective November 16, 2016, intended to improve subcontracting with small business concerns. The new rule implements sections 1321 and 1322 of the Small Business Jobs Act of 2010. Under section 1321, the Federal Acquisition Regulation (“FAR”) was to be amended “to establish a policy on, subcontracting compliance relating to small business concerns.” Thus, the new rule makes many FAR provisions relating to subcontracting with small business concerns. We will not discuss all the changes here, but will highlight those that have a. Read More.
Topics: contracting officers, Cost Accounting Standards "CAS", Federal Acquisition Regulation "FAR", Federal Acquisition Regulatory Council, indefinite-delivery indefinite-quantity “IDIQ”, Subcontracting
No More “Telegraph” and “Telegram” in the FAR?
On June 6, the Federal Register included proposed rules to remove references to “telegram,” “telegraph,” and other related terminology in the Federal Acquisition Regulation (“FAR”) and replace them with electronic options for communications. These two forms of communication are outdated in our technologically driven world. A telegram is “a message sent by telegraph and then delivered in written or printed form” while a telegraph is “a system for transmitting messages from a distance along a wire, especially one creating signals by making and breaking an electrical connection.” Most, if not all of us communicate on very different platforms today. This. Read More.
New DCAA Guidance on Revised Policies Related to Low-Risk Incurred Cost Submissions
As the Defense Contract Audit Agency (“DCAA”) slowly pushes to eliminate Incurred Cost Submission (“ICS”) audit backlog, DCAA has recently published a new memorandum (“MRD”) revising guidance for selecting low-risk Incurred Cost Submission proposals less than $250 million in “auditable dollar volume” (“ADV”). Published on May 27, 2016, the memorandum revises the MRD 12-PPD-023(R), dated September 6, 2012, and MRD 13-PPD-021(R), dated October 29, 2013. While not specifically defined in the Federal Acquisition Regulation (“FAR”), Contract Audit Manual (“CAM”) or elsewhere, ADV is typically considered by DCAA to be the total contract cost for flexibly priced government contracts and subcontracts. Read More.
Safeguarding of Contractor Information Systems Final Rule Issued
The Department of Defense, General Services Administration, and National Aeronautics and Space Administration issued a final rule on the basic safeguarding of contractor information systems that process, store, or transmit Federal contract information (“FCI”). Effective June 15, 2016, Federal Acquisition Regulation (“FAR”) 52.204-21, Basic Safeguarding of Covered Contractor Information Systems, was created and will be included in all solicitations and new contracts. It will apply below the simplified acquisition threshold and will be a required flow down clause. It will not apply to commercial off-the-shelf items, but will apply to commercial items and to services where FCI occurs. FCI is. Read More.
DOE Issues “Absolute Ban” on Overtime for Training and Education
On May 3, the Department of Energy (“DOE”) issued Acquisition Letter 2016-5 (“ AL 2016-5 ”), which provides guidance for managing overtime costs for training, and explicitly addresses overtime costs for training and education. The AL applies to all contracts and is effective immediately until cancelled. Federal Acquisition Regulation (“FAR”) Subpart 31.2 covers cost principles in contracts with commercial organizations. It stipulates a cost is only allowable only when it complies with all five requirements listed in FAR 31.201-2: Reasonableness Allocability Cost Accounting Standards/Generally accepted accounting principles Contract terms All of the other limitations in FAR Subpart 31.2 The limitations include the. Read More.
FLSA Changes on Overtime Compensation Expected Summer 2016
By: Sara Crabtree , Manager Cherry Bekaert has been providing periodic updates on proposed changes to the Fair Labor Standards Act (“FLSA”) in regard to overtime compensation and how employers might be impacted by these changes. The Solicitor of Labor has now confirmed that the changes are expected to be finalized and announced during the late spring or summer of 2016, and will become effective 60 days after finalized. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” (under the FLSA). Although the President did. Read More.