How Many Contractors Does It Take to Run the Government?
By: John Ford , Senior Consultant, Government Contractor Services Group For many years, there has been a debate as to how many contractors are performing work for the government. This issue has two components: (1) the number of entities holding contracts; and (2) the number of individuals who are actually performing those contracts. While the former is fairly easy to determine, the latter is more problematic. This article will discuss two of the tools available to the government to make this determination. These tools also help the government to know how much these employees are costing the government. The first tool, required. Read More.
Topics: Contractor Manpower Reporting Application "eCMRA", Contractor Performance Assessment Reports System “CPARS”, Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", Federal Acquisition Regulation "FAR", Government Contractors, Service Contract Act "SCA", System for Award Management "SAM"
Proposed Rule: Opening the Dialogue for Government and Industry to Play Friendly
On November 29, 2016, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration proposed an amendment to the Federal Acquisition Regulation (“FAR”). The purpose of this amendment is to clear misconceptions regarding the responsibilities of communication between government and industry during the acquisition process. By adding more explicit language to the FAR, the agencies involved hope to create more effective communication between government and industry. So what is the potential impact on regulation? FAR part 1.102-2 dictates the “performance standards” placed on private industry in the acquisition process. This rule proposes to amend FAR 1.102-2(a)(4) of. Read More.
The “How-To” for Defining Profit or Fee in DoD Price Proposals
A common question many contractors may find themselves asking: “How are we going to determine and bid profit/fee percentages to be applied in a proposal?” As always, each individual contractor has the right to determine the amount of applied profit/fee they want to bid for each contract. Dependent upon work scope, products/services offered, and even contract type, the risk is different and the competition providing proposals to the end users can vary greatly without going over statutory limitations. Contractors can utilize the Defense Federal Acquisition Regulation Supplement (“DFARS”) Weighted Guidelines approach as a tool in determining their profit negotiation position,. Read More.
DoD’s Final Rule on Counterfeit Electronic Parts Safe Harbor
On August 2, 2016, the Department of Defense (“DoD”) issued its final rule on Detection and Avoidance of Counterfeit Electronic Parts—Further Implementation. The rule amends the Defense Federal Acquisition Regulation Supplement by laying a safe harbor related to counterfeit and suspect counterfeit electronic parts. The safe harbor has three parts: The contractor must establish and maintain a system to detect and avoid counterfeit and suspect counterfeit electronic parts. The contractor must obtain review and approval of its system from DoD. The counterfeit or counterfeit suspect electronic parts must have been provided to the contractor as government property, or the contractor. Read More.
DoD Proposes Changes to Cost or Pricing Data Rules for Small Businesses
On August 30, the Department of Defense (“DoD”) issued a proposed rule to implement a section of the National Defense Authorization Act for fiscal year 2016 that provides exceptions from the certified cost and pricing data requirements, and from the records examination requirement for certain awards to small businesses or nontraditional defense contractors. The proposed rule would amend the Defense Federal Acquisition Regulation Supplement (“DFARS”) to provide an exception from cost or pricing data for contracts, subcontracts, or modifications of contracts or subcontracts valued at less than $7.5 million. This exception would be applicable to small businesses or “nontraditional” defense contractors,. Read More.
Topics: Cost Accounting Standards "CAS", Cost Data, Defense Federal Acquisition Regulation Supplement "DFARS", Department of Defense "DoD", National Defense Authorization Act "NDAA", Pricing Data, small business
Subcontractor Oversight (Who’s Responsible?)
By: John N. Ford, JD ; Senior Consultant Who has privity? 42.505 – Post-award Subcontractor Conferences (a) The prime contractor is generally responsible for conducting post-award conferences with subcontractors. However, the prime contractor may invite Government representatives to a conference with subcontractors, or the Government may request that the prime contractor initiate a conference with subcontractors. The prime contractor should ensure that representatives from involved contract administration offices are invited. (b) Government representatives– (1) Must recognize the lack of privity of contract between the Government and subcontractors; (2) Shall not take action that is inconsistent with or alters subcontracts; and (3) Shall ensure that. Read More.
Topics: Cognizant Federal Agency "CFA", Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Department of Defense "DoD", National Defense Authorization Act "NDAA", privity of contract, subcontractors