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Government Contracts Monitor

Watch Out! DCAA Will Soon Be Asking for your Internal Audit Reports

The 2013 National Defense Authorization Act (“2013 NDAA”), which was signed by the President on January 3, 2013, includes a provision allowing the Defense Contract Audit Agency (DCAA) to ask contractors for their internal audit reports and then keep track of the contractors’ responses, but stops short of actually requiring contractors to produce the reports.  An earlier version of the bill…

Congress Acts in the 13TH Hour to Avert the Cliff

Congress reached a compromise on the tax aspects of the fiscal cliff in the American Taxpayer Relief Act of 2012 (the “Act”), which was passed by Congress on January 1, 2013 and signed into law on January 3, 2013, by President Obama.

How does this compromise impact you?

The Act made permanent the existing rate structure, but increased rates for individuals earning over certain thresholds. …

Not a Happy New Year for AT&T

Continuing the strong trend to increase the reach of the False Claims Act, on December 28, 2012, the United States District Court for the Western District of Pennsylvania denied AT&T’s motion to dismiss a False Claims Act (FCA) whistleblower suit filed by Constance Lyttle, a former AT&T IP Relay call center employee.  See United States ex rel. Lyttle v. AT&T Corp., No. 10-cv-1376 (W.D. Pa.…

Update: Court Sides with VA’s Interpretation that Veteran-Owned Small Business Set-Asides Are Not Necessary Before Ordering Off the Federal Supply Schedule

In a recent decision, Kingdomware Technologies, Inc. v. United States, No. 12-173C (Fed. Cl. Nov. 27, 2012), the Court of Federal Claims held that under the Veterans Benefits, Health Care, and Information Technology Act of 2006, 38 U.S.C. §§ 8127-8128 (“the VA Act”), the Department of Veterans Affairs (VA) may purchase goods/services off the Federal Supply Schedule (FSS) using…

DCAA Audit Backlog - You Can\'t Always Get Your Contract Closed Out

As you probably know, the Defense Contract Audit Agency (DCAA) has an incredible backlog of incurred cost audits.  While they’ve been tackling this backlog through a 2012 initiative that focuses on high dollar value incurred costs (or incurred costs that, for some other reason, are considered “high risk”), Congress doesn’t think the process is working – or at least not fast enough.

Incurred…

A Banner Year for False Claims Act Recoveries – For Whom?

Principal Deputy Assistant Attorney General Stuart Delery recently announced the Department of Justice’s (DOJ’s) record year for False Claims Act (FCA) civil recoveries.  What was the FY 2012 amount? Nearly $5 billion.

To what does DOJ attribute this startling number?  According to Delery, who spoke at a recent briefing, “this Administration has achieved record returns for the U.S.…

Another Stiff Sentence for Veteran Falsely Claiming a Service-Disability

A 70 year old man was recently sentenced to over seven years in federal prison for falsely claiming to be a service-disabled veteran and war hero in order to obtain nearly $6.8 million dollars in federal contracts set aside under the Service-Disabled Veteran-Owned Small Business (SDVOB) Program.  This harsh sentence is yet another example of the Federal Government’s increased focus on…

Diamonds May Be Forever But So Is A Felony Conviction

In United States v. Rabinowitz, No. 11-CR-230, Jerome Rabinowitz was indicted in the Southern District of Ohio, Eastern Division on multiple counts of mail fraud, wire fraud, money laundering, and false statements. Mr. Rabinowitz was the owner of J&W Technologies, LLC (“J&W”), a New York corporation and DOD contractor that sold and supplied parts to the DOD.  The items at issue included a…

Fraud, Waste, and Abuse Programs for Small Business R&D Contracts Continue to Evolve

As detailed in a recent report issued by the Government Accountability Office (GAO), federal agency efforts to address fraud, waste, and abuse in small business research and development contracts are continuing to develop into more robust programs that remain agency-specific but will increasingly reflect a common set of strategies.

The GAO prepared the report, “Small Business Research Programs:…

Sequestration Part IV – Preparing for the Worst

As “talks” among the White House and Congressional leaders stumble along here in Washington, D.C., contractors all along the ideological spectrum hope that reason will prevail and a deal will be struck so the “fiscal cliff” and sequestration can be avoided.  However, as demonstrated by the wrangling that resulted in the Budget Control Act of 2011 (and our current predicament),…

Update: All or Almost All You Want to Know About the Foreign Corrupt Practices Act

On November 14, 2012 the Criminal Division of the Department of Justice and the Enforcement Division of the Securities and Exchange Commission issued a long promised “Resource Guide” on the U.S. Foreign Corrupt Practice Act (“FCPA”).  As previously reported here, DOJ announced this guide was coming a year ago – and it is worth the wait.  The Guide provides a comprehensive…

Sequestration Part III – Contracts Are Not Only Harder to Win and Keep, but Harder to Perform

In addition to causing the impacts on winning awards and maintaining contract scope discussed in our previous article, sequestration promises to make contract performance substantially more difficult for government contractors.  This doesn’t mean that sequestration will add to the requirements with which contractors have to comply.  It just means that sequestration will give contractors more…

 

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