SBA Issues Proposed Rule to Allow Lower Tier Small Business Subcontractors to Qualify Toward Small Business Subcontracting Goals
On October 6th, 2015 the Small Business Administration (“SBA”) issued a proposed rule to allow “other than small” business prime contractors, with small business subcontracting plans, to receive credit for awarding subcontracts to small businesses at any tier level. Under the current regulations, credit toward small business subcontracting goals is awarded only at the first tier level. The proposed rule seeks to further the government’s overall commitment to providing Federal procurement opportunities to small business. Federal Acquisition Regulation (“FAR”) 52.219-9(l), which provides regulations governing small business subcontracting plans, states the “subcontract award data reported by prime Contractors and subcontractors shall. 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
Another Delay for SAM?
System for Award Management (SAM) is a federal government database that will eventually combine the data from multiple databases or systems to provide a single portal for contractors, grantees, and federal agencies. In July 2011, eight systems were projected to be included in SAM by the end of 2014. Currently, only four systems, Central Contractor Registration (CCR), Online Representation and Certifications Application (ORCA), Excluded Parties List System (EPLS) and Federal Agency Registration (FedReg) have been combined. On July 31, 2014, the president issued an Executive Order (Order): Fair Pay and Safe Workplaces . It requires federal contractors submitting an offer for a contract of goods. Read More.
Topics: Administrator of General Services Administration "GSA", Central Contractor Registration "CCR", Data Collection, Director of Office Management and Budget "OMB", Excluded Parties List System "EPLS", Fair Pay, Federal Acquisition Regulation "FAR", Federal Agencies, Federal Agency Registration "FedReg", Federal Awardee Performance Integrity Information System "FAPIIS", Federal Government, Government Contractors, Online Representation and Certifications App;ication "ORCA", Secretary of Labor, System for Award Management "SAM", U.S. Department of Labor, Workplace Safety
DCAA Issues new Guidance on Establishment of Provisional Billing Rates
On June 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (“MRD”) 14-PPS-012(R) Guidance on Establishing Provisional Billing Rates . The new guidance is effective October 1, 2014, but early implementation is encouraged. This new guidance should help to ease issues that have arisen between DCAA and contractors regarding a contractor’s obligation to submit a proposal to establish billing rates. In the past, some of our clients have had DCAA auditors cite them for having deficient accounting systems because the contractor did not submit a “timely” proposal to establish billing rates. This was inappropriate because there is no specific requirement in the FAR for a contractor to submit. Read More.