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Government Contracts Monitor

Avoid the Use of Counterfeit Parts: DOD Proposes New Rules to Make Sure You Do

The Department of Defense (DOD) has issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to ensure that contractors are held responsible for detecting and avoiding the use of counterfeit or suspect electronic parts.  The overall effect of this rule would be to shift the burden of detecting and avoiding counterfeit parts from the Government to…

Gimme Shelter: Suspension & Debarment Concerns Continue

On June 12, 2013, Congress heard testimony on the state of the federal government’s suspension and debarment system.  What it heard may mean trouble ahead.

John Neumann, GAO’s Director of Acquisition and Sourcing Management, was one of the individuals who testified.  His testimony was a follow-up to two reports issued by GAO, in 2011 and 2012, regarding (i) agency underuse of suspension…

Department of Labor’s New Guidance On the Davis-Bacon Act

Earlier this Spring, the Department of Labor’s Wage and Hour Division (“WHD”) issued All Agency Memorandum Number 213 on the Davis Bacon Act announcing a change in how agencies should determine wage rates for additional classifications that are conformed to an existing wage determination.

In the past, the Wage and Hour Division generally approved proposed wages for a conformed skilled craft when…

Update: USDA Designates New Categories of Biobased Products to Receive Preferential Treatment in Federal Procurement

As we previously reported here, the Federal Government has a procurement preference program for biobased products called BioPreferred.  On June 11, 2013, the Department of Agriculture (USDA) designated eight new categories of products that qualify for this program.  They are: aircraft and boat cleaners, automotive care products, engine crankcase oil, gasoline fuel additives, metal cleaners and…

Federal Circuit Affirms Initial Awardee’s Right to Challenge Corrective Action

Congratulations!  Your company just won a significant, best value procurement, beating out the incumbent and others based primarily on low price.  However, the disappointed incumbent has protested the award, creating a not uncommon good news/bad news scenario.  The good news is that you believe the protest is either untimely or otherwise without merit.  The bad news is that the agency has decided to…

Stay Tuned: We May Soon Know More about a Contracting Officer’s Duty to Provide CBA Information to Offerors under the Service Contract Act

While it failed to fully resolve the matter at hand, the recent decision in CAE USA, Inc., ASBCA No. 58006 (May 23, 2013), promises a future answer to the question as to whether a Contracting Officer must supply not only the predecessor contractor’s collective bargaining agreement (CBA), but also full information as to the application and accrual of wages and fringe benefits.

The case involved an…

Teaming Agreements: Enforceable Contracts or Unenforceable Agreements to Agree?

Teaming Agreements are an everyday occurrence in federal government contracting. Contractors typically enter into teaming agreements to formalize their relationship while pursuing a federal contract.  If a federal contract is awarded to the lead contractor, the normal expectation is that the parties will then perform the work according to mutually acceptable terms.  The big question…

VA Invites Comments to Improve the Veteran-Owned Small Business Verification Program

The Department of Veterans Affairs Office of Small and Disadvantaged Business Utilization (“OSDBU”) is currently reviewing its regulations governing the VA’s Veteran-Owned Small Business (“VOSB”) Program, and is inviting comments, by July 12, 2013, as to “any issue related to improving these specific regulations and the program.”  See Advance Notice of Proposed Rulemaking (“ANPRM”), VA…

New Solicitation Method Fixes Prices, But May Hinder Competition

Legislation recently introduced in the House of Representatives proposes a new bid evaluation method called “fixed-price technical competition.”  Under this method, the solicitation would pre-set the award price based on the government’s independent cost estimate, leaving offerors to distinguish themselves based on non-price factors alone, such as technical differences and past…

Off to the races: Mentor-Protégé Joint Ventures May Compete as 8(a)s on any Government Contract

It has recently come to our attention that contractors, as well as some agencies, may not realize that an 8(a) mentor-protégé joint venture (“JV”) can bid as an 8(a) entity, on an 8(a) contract, without the JV itself being 8(a) certified.  The Small Business Administration (“SBA”) controls the 8(a) program and 8(a) eligibility status, but SBA “does not certify joint ventures as section 8(a)…

Government Contractors and the President May Soon Have the Same Salaries

In a recent article by Joe Jordan, Administrator of the Office of Federal Procurement Policy, the Obama Administration announced it will be sending to Congress a legislative proposal to cap reimbursement for government contractor executive compensation.  Jordan wrote that under current law, contractors can seek reimbursement for executive salaries, bonuses and other compensation up to the…

Employers Beware: Department of Labor Geared Up For Enforcement

Over the last several years, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) has become much more aggressive in how it investigates and prosecutes worker misclassification, Service Contract Act (“SCA”), Davis-Bacon Act (“DBA”), and Fair Labor Standards Act (“FLSA”) issues. Government contractors, as well as private sector employers without government contracts, should take note of…

 

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