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PNWC’s Government Contracting Update

DCMA Criticized Over it Contract Administration Performance

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PNWC's Government Contracting Update

Surely many contractors have had their issues with Government oversight from time to time. One of those oversight organizations is the Defense Contract Management Agency (DCMA). DCMA performs contract administration services for DoD and other Federal agencies and a limited number of foreign governments. Within DCMA is an IT (Information Technology) Directorate whose program managers, contracting officers representatives (CORs) contract specialists, and contracting officers are involved in awarding and administering DCMA IT service contracts. It seems that DCMA cannot effectively administer their own contracts.

Source: PNWC’s Government Contracting Update: DCMA Criticized Over it Contract Administration Performance

2019 National Defense Authorization Act

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PNWC's Government Contracting Update

Details of the fiscal year 2019 National Defense Authorization Act (NDAA) are beginning to emerge but are no where near complete as representatives introduce amendments to the proposed legislation  almost daily. If past years are an indication, we won’t see the 2019 NDAA signed into law until late fall.

Source: PNWC’s Government Contracting Update: 2019 National Defense Authorization Act

2019 NDAA Provisions – Accelerated Payments for Small Businesses

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PNWC's Government Contracting Update

Small businesses will certainly welcome this item tucked away into the current version of the proposed 2019 NDAA (National Defense Authorization Act) – accelerated payments.

Source: PNWC’s Government Contracting Update: 2019 NDAA Provisions – Accelerated Payments for Small Businesses

Deficiencies in Small Business Subcontracting Goal Oversight

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PNWC's Government Contracting Update

The Federal Government does a pretty good job of meeting its small and disadvantaged subcontracting goals. (See, for example, Proposed Legislation to Increase Small/Minority/Disadvantaged Subcontracting Goals). Prime contractors have not been doing as well and some of the blame has been pinned on Government contracting officers for inattention to what their prime contractors are doing.

Source: PNWC’s Government Contracting Update: Deficiencies in Small Business Subcontracting Goal Oversight

Contract Disputes – Briefly

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PNWC's Government Contracting Update

It is the Government’s policy to try to resolve all contractual issues by mutual agreement at the contracting officer’s level without litigation. Often times, it does not seem like this is the Government’s policy at all. There are a few contracting officers out there that fancy themselves as the supreme authority on contractual matters and rebuff any attempts at compromise or resolution. Likewise, there are contractors out there that view any questions or queries from Government officials as personal attacks on their character and integrity. When these two meet, there is little hope of resolution so contracting officers issue their final decision and contractors submit claims.

Source: PNWC’s Government Contracting Update: Contract Disputes – Briefly

Fraud Conspiracies are Hard to Detect

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PNWC's Government Contracting Update

Contractors are required by contract to have codes of ethical conduct, sound internal controls in business systems used in Government contracting, and procedures to detect and prevent fraudulent activities. Segregation of duties and levels of approvals are controls that will help prevent fraud. However, conspiracies (two or more people acting in concert to override existing internal control systems) are much more difficult to detect and tend to go on for a long time.

Source: PNWC’s Government Contracting Update: Fraud Conspiracies are Hard to Detect

Contractors Can File Claims Pertaining to Novated Contracts

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PNWC's Government Contracting Update

The Government filed a motion to dismiss a claim filed by Cooper/Ports America (CPA) with the ASBCA (Armed Services Board of Contract Appeals) because the company was not the contractor within the meaning of the Contract Disputes Act at the time the claim accrued.

Source: PNWC’s Government Contracting Update: Contractors Can File Claims Pertaining to Novated Contracts

New DoD Rule on Review, Audit, and Approval of Electronic Parts Purchases

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PNWC's Government Contracting Update

DoD issued a final rule last week that makes contractors and subcontractors subject to approval, review and audit by DoD officials when identifying a contractor-approved supplier of electronic parts.

Source: PNWC’s Government Contracting Update: New DoD Rule on Review, Audit, and Approval of Electronic Parts Purchases

DCMA’s Ombudsman

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PNWC's Government Contracting Update

DCMA (Defense Contract Management Agency) has an ombudsman to investigate contractor complaints against maladministration. This ombudsman is not exactly a specific person but an email address that serves the same purpose.

Source: PNWC’s Government Contracting Update: DCMA’s Ombudsman

Its Official – TINA Threshold for All Government Contracts Will Increase to $2 Million

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PNWC's Government Contracting Update

Last month, the Defense Department issued a class deviation to the FAR that will raise the threshold for certified cost or pricing data from $750 thousand to $2 million (see TINA Threshold Rises to $2 Million on July 1st 2018). This class deviation was made to comply with Section 811 of the 2018 NDAA (National Defense Authorization Act).

Source: PNWC’s Government Contracting Update: Its Official – TINA Threshold for All Government Contracts Will Increase to $2 Million

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