Government Contracts MonitorProcurement News and AnalysisShort Take: Some Government Contracts Business Models Should Be AvoidedFebruary 1, 2018 Earlier this week, the Department of Justice unsealed charges against a government contractor for his role in allegedly carrying out a multi-year, $2.6 million scheme to defraud at least 35 subcontractors located across the United States. The indictment, filed on January 30, 2018 in the Eastern District of California, charges Chester L. Neal Jr., 43, of Fresno, California, with two counts of mail… Short Take: Treasury Increases Prompt Payment & Contract Disputes Act Interest Rates, Effective 1/1/18January 24, 2018 The Treasury Department has announced that the Prompt Payment Act (“PPA”) interest rate is being increased to 2.625% per annum for the period of January 1, 2018 through June 30, 2018. This interest rate is used to calculate the interest penalty paid by the Government when it fails to timely pay contractors for goods and services, as well as interest due under the Contract Disputes Act (“CDA”).… New Year's Resolutions, 2018January 3, 2018 Reassess Your Size Status, Update Your DSBS and SAM Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings Happy New Year! The start of a new year is the time for New Year’s Resolutions. Here are several we strongly urge you to follow-through on early in 2018. 1. Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies… GAO Bid Protests – FY17 Protest Statistics (Overall Effectiveness at 47%; Sustains at 17%) and a Look AheadNovember 16, 2017 The Government Accountability Office (GAO) this week issued its Annual Report to Congress on bid protests during Fiscal Year 2017 (FY17; 10/1/16-9/30/17). The total number of bid protests filed (including supplemental protests, cost claims & reconsideration requests) declined (for the first time in three years) by 7% (2,596 vs. 2,789 protests in FY16). GAO closed 2,672 protests during the year,… DoD Issues New Guidance for Selected Portions of DFARS 252.204-7012September 26, 2017 DFARS Clause 252.204-7012, Safeguarding Covered Defense Information and Cyber Incident Reporting, was added in 2016. It requires contractors to safeguard covered defense information that is processed or stored on their internal information system or network by implementing National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, "Protecting Controlled Unclassified… Short Take: Good Bye . . . For Now. . . Revised EEO-1 FormAugust 31, 2017 August 29, 2017, the Office of Management and Budget (OMB) notified the Equal Employment Opportunity Commission (EEOC) that it was initiating a review and immediate stay of the revised EEO-1 form announced by EEOC in September of 2016. The new form, which was to be used beginning on March 31, 2018, sought more information than its predecessor relating to total compensation and total hours worked… Here We Go Again – Another Possible Federal Government Shut-Down – Actions to Take NowAugust 24, 2017 As we approach the end of the Government’s fiscal year at the end of September, we are once again facing a risk that the Federal Government could shut-down. The risk is heightened this time by: (1) the impending debt ceiling crisis, which Treasury estimates will be hit on September 28 or 29; and (2) President Trump’s reiteration earlier this week that he would be willing to shut-down the… DOL Increases SCA Minimum Health & Welfare Fringe Benefits Rate to $4.41/hr, Effective August 1, 2017August 3, 2017 The U.S. Department of Labor (DOL), Wage and Hour Division recently issued All Agency Memorandum No. 225, increasing the basic minimum Health and Welfare (H&W) fringe benefits rate applicable to service contracts under the Service Contract Labor Standards statute (formerly known as, and hereinafter referred to as, the Service Contract Act (SCA)) to $4.41/hr vs the former $4.27/hr -- i.e., an… Short Take: Treasury Announces Decreased 2-3/8% Prompt Payment & Contract Disputes Interest Rate for 7/1/17-12/31/17July 25, 2017 The Treasury Department has announced that the Prompt Payment Act interest rate is being decreased to 2-3/8% per annum for the period of July 1, 2017 through December 31, 2017. 82 Fed. Reg. 34348 (7/24/17). This interest rate is used to calculate the interest penalty payable by the Government when it fails to timely pay contractors for goods and services, as well as interest due on claims under… Short Take: DOD Seeks Public Input on Changes to DFARS Solicitation Provisions and Contract ClausesJune 21, 2017 Pursuant to President Trump’s February 24, 2017 Executive Order (E.O.) 13777, “Enforcing the Regulatory Reform Agenda,” the DFARS Subgroup to the DOD Regulatory Reform Task Group is seeking public input as to DFARS solicitation provisions and contract clauses that may be appropriate for repeal, replacement or modification. This comment opportunity provides contractors (and other members of the… Feds Meet FY16 Small Business Prime Contracting Goals (Except WOSB and HUBZone), But Individual Agency & Overall Subcontracting Shortfalls Persist, Providing Marketing OpportunitiesJune 6, 2017 The U.S. Small Business Administration (SBA) recently announced the federal government’s Fiscal Year 2016 (FY16) small business goaling results and Small Business Procurement Scorecard. According to SBA, the federal government achieved its 23% small business contracting goal for the fourth straight year, awarding 24.34% of federal prime contracts, totaling $99.96 billion, to small business. While… “It’s in There” -- Miller Act Bonding Requirements Are Read into Construction Contracts under the Christian DoctrineMay 24, 2017 The Armed Services Board of Contract Appeals (ASBCA) recently reaffirmed its January 2017 decision in K-Con, Inc., ASBCA Nos. 60686, 60687, 17-1 BCA ~ 36,632, holding that, pursuant to the Christian doctrine, the bonding requirements set forth in the Miller Act (and codified at FAR 52.228-15) are mandatory clauses that must be included in government construction contracts if they are omitted. In… |
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