ESOPs Gain in Popularity
By: John Carpenter , Principal Many private company business owners are taking a closer look at Employee Stock Option Plans (“ESOPs”) as a tool for either an exit strategy or a way to “take money off the table” through a sale of a portion of their company stock holdings. ESOPs were a less popular diversification strategy during the 2000s when government spending was on the rise, especially within the Department of Defense (“DoD”) and many companies could sell for attractive multiples with large, upfront cash components. The combination of flat to declining DoD budgets leading to less attractive market multiples, and capital. Read More.
Proposed Changes to Contractor Purchasing System Clause
The Department of Energy (“DOE”) is proposing to amend the Department of Energy Acquisition Regulations (“DEAR”) to increase dollar thresholds in its contractor purchasing system clause for management and operating contracts to conform to Federal Acquisition Regulation (“FAR”) Subpart 28.1. Additionally, DOE is revising the DEAR in accordance with a class deviation addressing Buy American Act non-availability determinations. Currently, DEAR section 970.5244-1, Contractor purchasing system, paragraphs (f)(1) through (f)(3) do not presently reflect the applicable dollar threshold in FAR 28.102-2(b) and (c). This proposed rule replaces the dollar amount in these paragraphs with reference to title 48 of the Code of. Read More.
Audit Alert Issued for DCMA Implementation Guidance on Blended Compensation Caps
On February 19, 2016, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 16-PSP-005(R), Audit Alert on DCMA Implementation Guidance on Blended Compensation Caps. The Alert provides auditors with official guidance when dealing with blended compensation caps with contractors, and in tandem with the Defense Contract Management Agency (“DCMA”). What does this mean? Let’s take a few steps back to October 2014, when Shay Assad, the Director of Defense Pricing Acquisition Technology, and Logistics OUSD (“AT&L”), issued a memo stating that use of a blended rate is deemed “practical and cost efficient.” This was in reaction to. Read More.
Topics: Blended Compensation Caps, Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Federal Acquisition Regulation "FAR", Memorandum for Regional Directors "MRD"
What’s in a Name?
As many Federal contractors know, speaking the language of government contracting can be a daunting task. Effective May 29, 2014, most of the familiar names and terminologies associated with some of the key Acts and provisions affecting government contractors were modified in the Federal Acquisition Regulation (FAR). The name changes were required to conform references throughout the FAR to the new Positive Law Codification of Title 41, United States Code. Positive law codification by the Office of the Law Revision Counsel is the process of preparing and enacting a codification bill to restate existing law as a positive law title. Read More.
New Labor Compliance Requirements Coming Soon
In July 2014, President Obama signed Executive Order 13673, Fair Pay and Safe Workplaces, which is scheduled to go into effect sometime this spring. The goal of the order is to ensure that government contractors who do business with the Federal government comply with required labor laws and promote safe, healthy, fair and effective workplaces. Prior to the award of a contract for goods and services, including construction where the estimated value will exceed $500,000, an offeror will be required to certify that it is in compliance with a variety of labor laws. Such laws include the Fair Labor Standards. Read More.
Topics: Executive Order, Fair Labor Standards Act "FLSA", Family and Medical Leave Act, Federal Acquisition Regulation "FAR", Government Accountability Office "GAO", Labor Compliance, labor laws, Occupational Safety and Health Act
Proposed FAR Amendment Would Change Confidentiality Agreements
The Department of Defense, General Services Administration, and National Aeronautics & Space Administration have proposed a rule to amend the Federal Acquisition Regulation (FAR) to implement a section of the Consolidated and Further Continuing Appropriations Act of 2015, which would prohibit the use of funds, appropriated or otherwise made available, for a contract with an entity that requires employees or subcontractors to sign an internal confidentiality agreement that restricts such employees or subcontractors from lawfully reporting waste, fraud, or abuse to a designated government representative authorized to receive such information. The proposed rule would add a new FAR section at. Read More.
Topics: Consolidated and Further Continuing Appropriations Act, Department of Defense "DoD", Federal Acquisition Regulation "FAR", General Services Administration "GSA", National Aeronautics & Space Administration "NASA"