A company in Savannah Georgia, Arena Event Services, Inc. has agreed to settle with the Government to resolve allegations that it wrongfully obtained small business set-aside contracts with the Department of Defense. As part of the settlement agreement, Arena will pay $7.8 million back to the Government.
Researching Federal Contract law is not easy and is usually left to the professionals. Contract disputes are complicated as well because the law and the regulations that were in effect when the contract was created govern its applications. This means going through many books, current and superseded.
Contract auditors perform audits and issue reports, sometimes with recommendations or questioned costs, to the contracting officer. The contracting officer, in turn, resolves the audit findings with the contractor. Sometimes, the contracting officer does not agree with the audit findings; more so if the audit relates to pricing proposals than with historical costs. Why? When it comes to pricing proposals, everyone’s dealing with estimates of future costs and judgement becomes a big part of estimating. Incurred cost on the other hand deal with historical evidence supporting the incurrence of costs. Contractors either have support or they don’t. Judgement is not a major factor on the allowability of costs.
Here’s another bid protest decision involving a late proposal. As often noted in similar cases, it is the offeror’s responsibility to ensure that its proposal is submitted to the right person on the right date at the right time. Failing to do this, could result in the unnecessary risk that a proposal is eliminated from competition.
This free seminar will be of interest for Government contractors and prospective contractors.
A “bid guarantee” (sometimes referred to as a “bid bond”) is a form of security assuring that the bidder will not withdraw a bid within the period specified for acceptance and will execute a written contract and furnish required bonds, including any necessary coinsurance or reinsurance agreements, within the time specified in the bid, unless a longer time allowed, after receipt of the specified forms (See FAR 28.001).
Back on August 24th, we reported a proposed rule by the Defense Department that would significantly slash the progress payment rate from 80 to 50 percent unless contractors were able to achieve certain milestones such as contract delivery, no significant corrective action requests, no significant business system deficiencies, meeting subcontracting goals, among others (see Proposed Changes to Progress Payment Rate).
Back in 2014, the President issued an Executive Order (EO) raising the minimum wage for workers performing work on Federal contracts. Later that year, the Labor Department issued regulations implementing the EO. In 2018, the current President issued his own EO which exempted contracts for recreational services on federal lands and for seasonal recreational services or seasonal recreational equipment rentals. The EO defined seasonal recreational services as river running, hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services, and youth camps. The EO specifically stated that the exemption does not apply to lodging and food services associated with seasonal recreational activities.
Did you know that there is a clause in most Government contracts that require contractors involved in business operations (including vending machines) on any premises owned by the United States or under control of any agency or instrumentality of the United States to be fully capable of:
Following is a listing of blog posts categorized by FAR Part 31 cost principle. You can also find these references and other related articles by using the “search” function just to the right of this index.