Department of Labor Proposes Rule Implementing Paid Sick Leave
On September 7, 2015, President Obama signed Executive Order (“EO”) 13706, establishing paid sick leave for federal contractors. The EO requires federal contractors to establish a policy to provide at least seven paid sick days annually, including paid leave allowing for family care. The Secretary of Labor was given until September 30, 2016, to issue regulations on the EO, which goes into effect January 1, 2017. On February 26, 2016, the Department of Labor (“DOL”) published its Notice of Proposed Rulemaking (NPRM) implementing EO 13706. The DOL predicts that the proposed rule will have a significant impact on federal contractors. Read More.
Prohibition of Reimbursement of Congressional Investigation Costs
On February 17, 2016, the Federal Register published a proposed rule that would prohibit government contractors from claiming costs incurred in response to a congressional investigation or inquiry that is the subject matter of a proceeding resulting in a disposition as described in 10 U.S.C. 2324(k)(2). As a refresher for those who are lucky enough to not deal with legal expense on a recurring basis, 10 U.S.C. 2324(K)(2) – Allowable Costs Under Defense Contracts, states that a disposition includes any of the following that results from a violation or failure to comply with, a Federal or State statute or regulation: A conviction. Read More.
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