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PNWC’s Government Contracting Update

What is “Challenge-Based Acquisition (ChBA)?

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PNWC's Government Contracting Update

Challenge-Based Acquisition (ChBA) is the concept where Government agencies present a need (the challenge) and potential providers are free to propose innovative solutions that fill that need.

Source: PNWC’s Government Contracting Update: What is “Challenge-Based Acquisition (ChBA)?

Can the Government Consider Information that Occurs After Proposal Submission When Evaluating Proposals?

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PNWC's Government Contracting Update

We all know that past performance and past performance evaluations play a significant role in the awarding of Government contracts. Most competitive solicitations include past performance as a significant evaluation factor and prospective contractors have the opportunity to put their best foot forward when compiling and submitting past performance information.

Source: PNWC’s Government Contracting Update: Can the Government Consider Information that Occurs After Proposal Submission When Evaluating Proposals?

Certificate of Competency – How it Works in Practice

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PNWC's Government Contracting Update

Yesterday we discussed SBA’s Certificate of Competency (COC) process which provides small businesses to receive a second look when a contracting officer has excluded them from consideration on a procurement because the company could not satisfy certain evaluation criteria to prove their capability to perform a Government contract. Today we want to illustrate how that works in practice by examining a recent GAO (Government Accountability Office) bid protest decision where a company was restored to “competency” as the result of the SBA review. If you missed yesterday’s post, click here to read it.

Source: PNWC’s Government Contracting Update: Certificate of Competency – How it Works in Practice

Man Charged in Yet Another “Rent-a-Vet” Scheme

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PNWC's Government Contracting Update

In December 2017, the owner of United Medical Design Builders LLC, Mr. Joseph Dial Jr., a service-disabled, veteran, was charged by the Justice Department with fraudulently obtaining contracts intended for service-disabled veteran-owned businesses. It seems that he didn’t really run the company but was just a figure-head for a co-conspirator, Troy Bechtel in a classic “rent-a-vet” scheme. Mr. Dial pleaded guilty for his part in the scheme in May 2018 and is set to be sentenced next week (January 28th).

Source: PNWC’s Government Contracting Update: Man Charged in Yet Another “Rent-a-Vet” Scheme

Revised Audit Guidance on Auditing Subcontract Costs

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PNWC's Government Contracting Update

The Defense Contract Audit Agency (DCAA) has moved to resolve an inconsistency in its coverage of incurred costs by issuing new guidance on when subcontract audit coverage is necessary.

Source: PNWC’s Government Contracting Update: Revised Audit Guidance on Auditing Subcontract Costs

Subcontract Pricing Considerations – Prime Contractors Must Demonstrate Reasonableness of Proposed Subcontract Costs

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PNWC's Government Contracting Update

Earlier this month, we highlighted a revised audit policy from the Defense Contract Audit Agency (DCAA) concerning the evaluation of subcontract costs included in forward pricing proposals. FAR 15.404-3(3)(b) requires prime contractors to perform whatever cost/price analysis is necessary to determine the reasonableness of proposed prices. Sometimes they don’t do that so historically, DCAA has considered them unsupported and perhaps identified the omission as an estimating deficiency. That policy did nothing to advance contract negotiations nor help procurement offices to negotiate fair and reasonable prices. Under the new guidance, DCAA is to provide whatever information it has available or conduct additional analytical work (i.e. develop decrement factors) to assist in any way it can. See “Revised Audit Policy for Reviewing Subcontractor Costs” for more information on the new policy.

Source: PNWC’s Government Contracting Update: Subcontract Pricing Considerations – Prime Contractors Must Demonstrate Reasonableness of Proposed Subcontract Costs

Labor Department Compliance Audits

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PNWC's Government Contracting Update

The Department of Labor’s Wage and Hour Division (WHD) investigators have been pretty busy lately, investigating contractor violations of certain labor related regulations. For contractors subject to the minimum wage and reporting requirements of Davis-Bacon (DB) and the Service Contracting Act (SCA), the probability of being audited for compliance is actually quite high and the consequences for failing to comply can be significant. The Labor Department recently sent out press releases concerning the outcome of two such investigations.

Source: PNWC’s Government Contracting Update: Labor Department Compliance Audits

Certificate of Competency

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PNWC's Government Contracting Update

Small businesses that have been excluded from consideration on a procurement because they did not meet certain specified evaluation criteria (such as past performance) may have be able to have the Government take a second look at a contracting officer’s determination.

Source: PNWC’s Government Contracting Update: Certificate of Competency

Cash Flow Shortages Caused by Partial Government Shutdown

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PNWC's Government Contracting Update

The partial Government shutdown is having financial ripple effects on, not only the furloughed Government employees, but on Government contractors. For contractors and subcontractors, the disruption of Government payments for work performed makes it difficult for some contractors (and subcontractors) to meet their own financial obligations.

Source: PNWC’s Government Contracting Update: Cash Flow Shortages Caused by Partial Government Shutdown

DCMA Stands-up Its Commercial Item Determination Group

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PNWC's Government Contracting Update

The Defense Contract Management Agency (DCMA) established a Commercial Item Group (CIG) in response to Congressional direction to DoD to establish a cadre of experts to leverage the use of commercial items and emerging technologies.

Source: PNWC’s Government Contracting Update: DCMA Stands-up Its Commercial Item Determination Group

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