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Government Contractors

Help, My Business Is Underwater

By: John Ford , Senior Consultant We have all seen news clips and heard reports of the flooding and devastation caused recently by Hurricanes Florence and Michael. Undoubtedly, contractors will be among those affected by these disasters. This is a good time to remind contractors of the contractual effects these events may have. There are two obvious effects such disasters can have on contract performance – a schedule impact and a cost impact. Looking at the schedule impact, there are several clauses that may come into play. In this regard, we all know that failure to deliver or perform on time or. Read More.

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Senior Manager Eric Poppe Hosts Webinar on Government Contracts Claims

Last month, senior manager Eric Poppe of Cherry Bekaert’s Government Contractor Services Group teamed with Venable LLP partner James Boland for a webinar titled “Preparing and Prosecuting Government Contracts Claims.” The hour-long webinar covered effective legal and accounting practices when preparing and prosecuting government contract claims. Eric and James also discussed the legal framework for claims and best practices to show entitlement and highlighted specific cases of interest. Catch the replay of the webinar on Venable’s YouTube Channel.


Long-Term Challenges of the U.S. Defense Industrial Base

According to a recently published Pentagon report, America’s defense industry outperformed other industrial sectors in fiscal year 2017 but faces serious challenges in the future. The Fiscal Year 2017 Annual Industrial Capabilities Report to Congress, released in May 2018, found that long-term trends threaten the health of the industrial base, limit innovation, and reduce U.S. competitiveness in global markets. The greatest challenge appears to be demographics of the workforce. Specifically, defense companies are faced with a shortage of qualified workers to meet current demands as well as future demands created by retiring senior-level engineers and skilled technicians. The risks vary. Read More.

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SBA Issues Amendments and Clarifications of Regulations

The U.S. Small Business Administration (“SBA”) amended its regulations to incorporate a provision of the National Defense Authorization Act of 2018 (“NDAA 2018”) and to update and provide technical corrections to SBA’s current regulations. The rule was issued on March 26, 2018, and became effective on May 25, 2018. The NDAA 2018 amended the Small Business Act by replacing the fixed dollar amount thresholds with references to the micro-purchase and simplified acquisition thresholds contained in the FAR. The NDAA 2018, signed into law by President Trump on December 17, 2017, now defines the micro-purchase threshold for products as $10,000; a. Read More.

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Cost Plus a Percentage of Cost Contracts

By: John Ford , Senior Consultant, Government Contractor Services Group Recently, I wrote an article that appeared in the August 2018 edition of Contract Management Magazine published by the National Contract Management Association (NCMA). That article addressed a contractor’s obligation to manage its subcontractors. In that article, I discussed the prohibition against the use of cost plus a percentage of cost (“CPPC”) subcontracts. In this regard, I identified the criteria for determining the existence of a CPPC contract as stated by the U.S. Government Accountability Office (“GAO”) and adopted by the Court of Appeals for the Federal Circuit. These criteria are: payment is. Read More.

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Do you Know if you are Running Kaspersky Anti-virus Software on your Network?

As the 2018 government fiscal year ends, another deadline is looming for government contractors. By October 1, government contractors must have all Kaspersky Lab hardware or software removed from their networks, as required by the Fiscal Year 2018 National Defense Authorization Act (“NDAA”) passed in December 2017. Founded in 1997, Kaspersky Labs is a global cybersecurity company founded by Eugene Kaspersky, who is perceived to have ties to Russian intelligence and the Kremlin (which the company denies). The anti-Kaspersky rhetoric grew stronger in 2017 after a National Security Agency government contractor running Kaspersky anti-virus software on their home computer was. Read More.

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