PNWC’s Government Contracting Update - page 58

The Professional Services Council (PSC) calls itself ” … the voice of the government technology and professional services industry, representing the full range and diversity of the government services sector.” It has more than 400 member companies representing small, medium, and large businesses who employ hundreds of thousands of workers in all 50 states.

Source: PNWC’s Government Contracting Update: PSC’s Agenda for the Next President

NASA has published an interim rule affecting its contractors who submit payment requests under cost-reimbursable contracts. Until the 2016 NDAA (National Defense Authorization Act), oversight of billings by NASA contractors was administered by DCAA (Defense Contract Audit Agency). However, the 2016 NDAA now prevents DCAA from performing any work for non_DoD agencies. As a result, all non-DoD agencies that have been relying upon DCAA to provide contract audit oversight are scrambling to find alternatives to DCAA.

Source: PNWC’s Government Contracting Update: New Procedures for Submitting Payment Requests on NASA Contracts

The FAR (Federal Acquisition Regulation) Councils have proposed to increase the dollar threshold for requiring audit of termination settlement proposals from $100,000 to $750,000. The proposed new threshold will be tied to the threshold for obtaining cost or pricing data (FAR 15.403-4(a)(1), thus whenever that threshold increases (once every five years based on inflation), the audit threshold for termination settlement proposals will increase as well.

Source: PNWC’s Government Contracting Update: Threshold for Audit of Termination Settlement Proposals to Increase

Back in 2012, the authority for determining a contractor’s eligibility for direct billing – submitting vouchers without having them first approved by a contract auditor – was taken away from DCAA (Defense Contract Audit Agency) and correspondingly, all defense contractors were automatically eligible to bill their costs without DCAA pre-approval. This greatly streamlined the billing process, allowed contractors to be paid more quickly, thus ensuring improved cash flows.

Source: PNWC’s Government Contracting Update: Auditor Testing of Paid Vouchers

The VA (Department of Veterans Affairs) issued a solicitation to purchase healthcare furniture and associated services for medical centers, community-based outpatient clinics, vet centers, and other qualifying clinics and offices throughout the United States. Selection was to be made on a best-value basis considering technical capability, past performance, small business participation and price. Under the technical capability factor, vendors were instructed to submit, among other things, a certifying statement indicating that they can meet all service requirements as defined in the statement of work.

Source: PNWC’s Government Contracting Update: Failure to Comply with Solicitation Requirements Leads to Lost Opportunity

The Department of Defense announced the establishment of the Advisory Panel on Streamlining and Codifying Acquisition Regulations, as directed by the Fiscal Year 2016 National Defense Authorization Act (NDAA). This panel is to conduct a “thorough and independent” assessment of acquisition regulations applicable to the Department of Defense.

Source: PNWC’s Government Contracting Update: New Panel Convened to Streamline DoD Acquisition Regulations

As some point during a company’s growth, leadership will need to develop a hotline – a mechanism for employees to report violations of laws and regulations, harassment, fraud, waste, and abuse. For Government contractors, that point comes, at the latest, when they receive a $5.5 million dollar contract that exceeds 120 days (see FAR 3.1004 and FAR 52.203-13). The pertinent regulations requires contractors to implement an internal control system that includes …

Source: PNWC’s Government Contracting Update: Ready to Implement an Internal Company Hotline?

The Department of Defense just published a final rule in its FAR Supplement (DFARS) that affects the allowability of certain costs – costs related to counterfeit electronic parts. The new cost principle can be found in DFARS 231.205-71. The “dash 71 means there is no corresponding cost principle in the FAR (Federal Acquisition Regulations).

Source: PNWC’s Government Contracting Update: New Cost Principle Addresses Allowability of Costs Related to Counterfeit Parts

The Department of Defense (DOD) updated its guidance late last week on commercial item determinations and the determination of price reasonableness for commercial items. Although there is a current DFARS (DoD FAR Supplement) case making its way through the rule-making process (see DFARS Case 2016-D0006), the DoD wants to jump-start the process to improve consistency and timeliness.

Source: PNWC’s Government Contracting Update: More Prodding by DoD to Increase Use of Commercial Pricing

Adnet Systems protested the award of a NASA contract to another bidder for a number of reasons, all of which were denied by the GAO (General Accountability Office). One of those protests involved the proposed level of compensation to be paid to incumbent employees.

Source: PNWC’s Government Contracting Update: Proposal Compensation Plans – Consistency is Paramount