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Government Contracts Monitor

Contracting Rules and Regulations

The Race to Suspend & Debar Heats Up

We recently wrote about the November 15, 2011 directive from the Director of OMB telling agencies to step up their suspension and debarment procedures.  Click hereto read the OMB directive in its entirety.   

More current events make clear that Congress means business when it comes to this issue.

 

First, the Consolidated Appropriations Act of 2012.  This…

DCAA Increases Focus on Costs Associated with Lobbying and Earmarks

Contractors who have received legislative earmarks may soon face increased scrutiny of their cost accounting practices from DCAA auditors.  Since 1984, FAR cost principles have declared that costs associated with lobbying efforts are generally unallowable.  See FAR 31.205-22.  In general, DCAA defines lobbying costs as “amounts incurred to influence the outcome of elections,…

SBA Increases Size Standards for NAICS Sector 54 and NAICS Code 811212, Effective March 12, 2012

The U.S. Small Business Administration (“SBA”) recently issued a new Final Rule, effective March 12, 2012, increasing the small business size standards for 34 industries and 3 sub-industries in NAICS Sector 54, “Professional, Technical and Scientific Services,” as well as for NAICS Code 811212, “Computer and Office Repair and Maintenance.”  Small Business Size Standards: Professional,…

New DFARS Reporting Requirement for IR&D Projects

On January 30, 2012, DoD issued a final rule amending the DFARS to require major contractors to report independent research and development (IR&D) projects for which reimbursement, as an allowable indirect cost, is sought from DoD.  See DFARS 231.205-18(c)(iii)(C).  Under this rule, which is effective immediately, major contractors must report IR&D projects to the Defense…

Jackson Kelly attorney helps CODSIA oppose and obtain withdrawal of the Department of Agriculture’s “Direct Final” and “Proposed” Rules on “Labor Law Violations.”

Jackson Kelly attorney Hopewell Darneille recently helped prepare comments submitted by the Council of Defense and Space Industry Associations (“CODSIA”) opposing the United States Department of Agriculture (“USDA”) Acquisition Regulation (“AGAR”) proposed new Clause 452.222-7001, “Labor Law Violations.” USDA’s proposal was published in the Federal Register on December 1, 2011, as both a “direct…

Selling Biobased Products to the Federal Government

Government contractors (and, in particular, commercial companies) need to be aware of the Federal Government’s procurement-preference program for biobased products, called BioPreferred.  Under section 9002 of the Farm Security and Rural Investment Act of 2002 (“FSRIA”), the Department of Agriculture (“USDA”) is responsible for leading this initiative.

Under the BioPreferred program, the USDA…

SBA Proposes Harsher Penalties for Small Businesses that Misrepresent their Size and/or Status

On October 7, the Small Business Administration (SBA) issued a proposed ruleto strengthen penalties for small businesses that misrepresent their size and/or special socioeconomic status.  Under the proposed rule, any business that willfully seeks and receives a Federal award[1] by misrepresenting itself as a small business or a small business with special socioeconomic status[2]…

Contractors Performing Acquisition Functions Must Prevent Personal Conflicts of Interest

Effective December 2, 2011, contractors and subcontractors who are performing acquisition functions will be required to identify and prevent personal conflicts of interest of their employees and prohibit employees who have access to non-public information from using such information for personal gain.  This Final Rule applies to certain contracts, as well as task orders and delivery…

OMB Adopts New Accelerated Payment Policy for Small Businesses

The Office of Management and Budget (“OMB”) recently established a new policy requiring agencies to make payments to small business contractors as soon as possible, with the goal of making the payments within 15 days of receipt of proper documentation. Office of Mgmt. & Budget, Executive Office of the President, OMB Bull. No. M-11-32, Accelerating Payments to Small Businesses for Goods and…

Agencies Deviate From Standard FAR Clauses At Their Own Peril

Federal agencies with special and articulated needs may deviate from standard FAR clauses and craft their own proposed contract clauses.  However, such custom, non-standard clauses must be rational and reasonable, as the Government recently learned the hard way in U.S. Foodservice, Inc. v. United States, No. 11-376C (Oct. 12, 2011), which involved a pre-award bid protest before the U.S.…

“Do Not Pay” List Coming in a Few Months

Contractors who are not current on their federal taxes may not get paid by the Federal Government, once the new “Do Not Pay” List is up and online.   The Treasury Department is expected to release its full “Do Not Pay” List within the next few months, according to a recent internet posting  from the Office of Management and Budget.

   This List will integrate several…

 

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