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PNWC’s Government Contracting Update - page 31

Whitefish Energy Contract to Restore Puerto Rico Electricity | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

As promised, we are bringing you an update to our October 30th posting concerning the contract awarded to Whitefish Energy by the Puerto Rico Electric Power Authority (PREPA) to help restore electricity on the island (see Whitefish Energy). This $300 million contract at rates exceeding $240 per hour for electrical linemen awarded to a company with two full-time employees raised a lot of concern by both Democrats and Republicans in Congress as well as several oversight agencies including Offices of Inspector Generals. One Congressman termed it a “sweetheart deal to a fly-by-night company”.

Source: PNWC’s Government Contracting Update: Whitefish Energy Contract to Restore Puerto Rico Electricity

GAO To Begin Charging a Filing Fee for Bid Protests | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

Beginning sometime next year (2018), the GAO (Government Accountability Office) will begin charging $350 to anyone filing bid protests. Currently, there is no charge for filing. For some contractors, the cost may be even higher. There is a provision in the Senate version of the 2018 National Defense Authorization Act (NDAA) that would require unsuccessful bidders to pay the cost for unsuccessful protests filed against the Defense Department (this applies to companies with revenues in excess of $100 million).

Source: PNWC’s Government Contracting Update: GAO To Begin Charging a Filing Fee for Bid Protests

Fair Pay and Safe Workplaces Rules – Dead | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

This week, the FAR (Federal Acquisition Regulation) Councils issued a final rule implementing a public law that disapproved a previous final rule. The rule, called Fair Pay and Safe Workplaces, was based on an Executive Order (EO) that was ultimately overturned by Congress. To read what the regulations would have required, see Fair Pay and Safe Workplaces).

Source: PNWC’s Government Contracting Update: Fair Pay and Safe Workplaces Rules – Dead

Failure to Submit “Responsive” Offer Leads to Lost Opportunity | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

Offerors must avail themselves of every reasonable opportunity to obtain solicitation documents. Otherwise, they risk being eliminated from consideration.

The Department of Homeland Security (DHS) issued an RFQ (Request for Quotation) to provide armed and unarmed detention officer services in California. Nu-Way security and Investigative Services (Nu-Way) was one of the bidders. DHS issued four solicitation amendments. Three of the four extended the deadline for proposal submissions. Amendment No. 2 made several changes including three modifications to the pricing spreadsheet including a transition period line item, a project manager for San Diego, and increased mileage reimbursement rates. All of these changes were summarized on page one of the amendment.

Source: PNWC’s Government Contracting Update: Failure to Submit “Responsive” Offer Leads to Lost Opportunity

Fraud Friday – Government Employee Solicited and Accepted Bribes from Contractor | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

Now they’re both in a heap of trouble.

There is not that much different in the relationship between a Government contracting officer and his contractor and that of a purchasing agent and his suppliers. In both cases, management places a great deal of trust that the person will act with integrity in carrying out his duties – namely buying at the best possible prices and terms. Trust is crucial but is not a substitute for good internal controls.

Source: PNWC’s Government Contracting Update: Fraud Friday – Government Employee Solicited and Accepted Bribes from Contractor

2018 NDAA – Public Comment Submitted to Congress | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

The Professional Services Council (PSC) has weighed in on some of the provisions of the 2018 National Defense Authorization Act (NDAA) now that the House and Senate bills have moved on to conference committee for reconciliation. Among their concerns is the provision in the Senate version requiring losing bid protesters to pay the processing costs incurred by DoD (see Large Contractors May Need to Reimburse DoD for Bid Protest Costs). The PSC “strongly objects” to this provision. But PSC’s letter also covers major concerns over provisions related to DCAA’s (Defense Contract Audit Agency’s) incurred cost backlog. PSC writes:

Source: PNWC’s Government Contracting Update: 2018 NDAA – Public Comment Submitted to Congress

At Last, Some Relief for DOE Contractors | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

For the past few years, the Department of Energy (DOE) has taken an extremely literal approach to contractors claiming overtime for employee training purposes. FAR 31.205-44(a) , Training and Education Costs, states that overtime compensation for training and education is unallowable. DOE has taken the position that there can be no exceptions to this rule. It didn’t matter whether a contractor could show that it was more cost effective to pay overtime for training than to hire additional staff to cover contract-required services. It didn’t matter that certain training was specifically mandated by contract and not discretionary. It didn’t matter that the training contributed significantly to contractor employee health and safety. Contractors had to find a way to do all of this without incurring overtime.

Source: PNWC’s Government Contracting Update: At Last, Some Relief for DOE Contractors

Senator Wonders How DCAA is Progressing in Reducing its Backlog of Incurred Cost Audits | PNWC’s Government Contracting Update

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On Monday of this week, Senator Clair McCaskill in her position as ranking member of the Senate Committee on Homeland Security and Governmental Affairs, sent a letter to the Defense Department requesting “detailed information regarding the audit backlog at the Defense Contract Audit Agency (DCAA)”.

Source: PNWC’s Government Contracting Update: Senator Wonders How DCAA is Progressing in Reducing its Backlog of Incurred Cost Audits

Whitefish Energy | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

Last week, it was announced (or revealed) that a tiny company in Montana called Whitefish Energy Holdings had been awarded a $300 million contract from the Puerto Rico Electric Power Authority (PREPA) to restore electricity on the island. That massive size of the contract given the experience and size of Whitefish, has been met with skepticism by Republicans and Democrats alike and amid the outcry, PREPA is now moving to cancel the contract (after a plea from the Governor of Puerto Rico).

Source: PNWC’s Government Contracting Update: Whitefish Energy

Offeror Made three Attempts to Deliver its Proposal to Air Force – To No Avail | PNWC’s Government Contracting Update

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PNWC's Government Contracting Update

The Air Force issued a RFTOP (Request for Task Order Proposals) under its IDIQ contracts for cyber security and information systems technical tasks. Proposals were to be submitted electronically no later than 1:00 p.m. Central Time on July 17, 2017. The solicitation provided that proposal receipt would be acknowledged by return email.

Source: PNWC’s Government Contracting Update: Offeror Made three Attempts to Deliver its Proposal to Air Force – To No Avail

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