Government Contracts MonitorProcurement News and AnalysisContractors ignoring the SCA and misusing the 8(a) program beware …September 7, 2011 On July 25, 2011, the United States District Court for the District of Columbia ruled that the plaintiffs in a qui tam action brought against The Kane Company (“the Company”) under the False Claims Act (“FCA”) could proceed with their suit, holding they had adequately stated a claim under the FCA and for fraud. United States ex rel. Anthony Head v. Kane Co., No. 05-317 (D.D.C. July 25,…The Revolving Door Continues to Create OCI ProblemsSeptember 6, 2011 During the procurement under protest in PCCP Constructors, JV; Bechtel Infrastructure Corporation, B-405036(August 4, 2011), a U.S. Army Corps of Engineers (Corps) Chief retired and began employment with the company ultimately selected for the award – CBY. At the time of his retirement, the Chief held the most senior civilian position within the Corps’ Hurricane Program – the program with… Organizational Conflicts of Interests Cannot be Based on “Suspicion and Innuendo”September 6, 2011 The U.S. Court of Appeals for the Federal Circuit recently affirmed the Court of Federal Claims’ (CFC’s) decision regarding an organizational conflict of interest (OCI). In Turner Construction Co., Inc. v. United States, 2010-5146 (July 14, 2011), Turner had been awarded a construction contract by the Army that was protested based on alleged OCIs arising from merger discussions between Turner’s… Sole Source Award: Not So FastAugust 16, 2011 On July 13, 2011, the Court of Federal Claims (CFC) granted a protester’s request and held that the method used by the Army to make a sole-source award for base shelter systems was illegal, despite the fact that the sole-source contract had been fully performed. Cal. Indus. Facilities Res. v. United States, No. 11-299C (Fed. Cl. Jul. 13, 2011) (full text available here). The Army argued the… Contractor Tax Withholding Provision DelayedMay 17, 2011 The Internal Revenue Service issued a final rule delaying a controversial provision requiring that the Government withhold a percentage of its payments to contractors for tax purposes. This provision will require federal, state, and local governments with expenditures of more than $100 million to withhold 3% of each payment that is more than $10,000. The provision applies to…Federal Contractors May Be Required to Disclose Political ContributionsMay 4, 2011 President Obama issued a draft Executive Order that will “require all entities submitting offers for federal contracts to disclose certain political contributions and expenditures that they have made within the two years prior to submission of the offer.” The contemplated disclosure will include (1) contributions made to or on behalf of federal candidates, parties or party… Department of Defense Issues New Source Selection ProceduresApril 4, 2011 The Department of Defense has issued new Source Selection Procedures. These procedures are effective July 1, 2011 for all acquisitions conducted under FAR Part 15. Appendix A, Lowest Price Technically Acceptable Source Selection Process, and Appendix B, Debriefing Guide, of the Procedures provide additional uniform guidance for the conduct of DoD acquisitions. DoD will…Legislation Equalizes All Small Businesses for Contract Set-AsidesJanuary 24, 2011 The newly enacted 2010 Small Business Jobs Act, among other things, puts all small business categories on equal footing when competing for government contracts. Before the 2010 Act, the 1953 Small Business Act said that government agencies “shall” set-aside contract awards for small businesses in Historically Underutilized Business Zones (HUBZone), while statutes for other categories of… Proposed Legislation Could Put Alaska Native Corporations on Equal Footing with Other Small BusinessesJanuary 24, 2011 Alaska Native Corporations (ANCs) will no longer receive preferential treatment over other small businesses under proposed legislation from Senator Claire McCaskill (D-Mo.) and Representative Bennie Thompson (D- Ms.). If passed, this legislation will make ANCs no different than other small businesses in the Small Business Administration’s 8(a) Program, such as those owned by minorities, women,… House Passes Legislation Requiring FCPA Violators to be Proposed for DebarmentSeptember 22, 2010 Legislation approved by the House last week would require federal agencies to propose for debarment federal contractors found to have violated the Foreign Corrupt Practice Act (FCPA). The FCPA prohibits giving or offering to give anything of value to a foreign official for the purpose of obtaining or retaining business for or with any foreign government. The new legislation – the 2010 …Government Finalizes Rule Requiring Posting of Sole Source JustificationsJuly 9, 2010 As we reported previously, the Government must use “full and open competition” when it purchases goods or services unless one of seven primary exceptions is met. When the Government decides to limit competition by using one of these exceptions, it must prepare a “Justification and Approval” (J&A) explaining its rationale. While these documents have always been “available…Navy Announces Proposed Preferred Supplier ProgramJune 14, 2010 This October, the Navy plans to introduce a “Preferred Supplier Program” to reward contractors that have exhibited “exemplary performance” in the areas of cost, schedule, performance, quality, and business relations. Preferred Supplier Status (PSS) will provide contractors with better cash flow, profit, and contract terms. Importantly, PSS only impacts contract performance and will… |
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