Monthly archive

January 2018 - page 3

External Restructuring Costs

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PNWC's Government Contracting Update

Defense contractors sometimes consolidate and then restructure to reduce operating costs. Reducing operating costs will then reduce contract costs. At least that’s the theory. Back in 1994, Legislation was passed whereby the Defense Department would pick up some of the increased costs so long as contractors could demonstrate either (i) a 2:1 return on investment or (2) that the return would exceed the cost and the business combination would result in the preservation of critical capability that might otherwise be lost to the Defense Department. DoD formulated procurement regulations to go along with the legislation. Those regulations can be found in the DoD FAR Supplement at 231.205-70, External Restructuring Costs.

Source: PNWC’s Government Contracting Update: External Restructuring Costs

NAICS Code Appeals: Infrequent, but Often Successful – SmallGovCon

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NAICS code appeals at the SBA Office of Hearings and Appeals are infrequent, and are often dismissed. But those NAICS code appeals decided on the merits are successful nearly half of the time.

Source: NAICS Code Appeals: Infrequent, but Often Successful – SmallGovCon

Should M&A be part of your 2018 growth strategy? — Washington Technology

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With the New Year just underway, this is a great time for every business leader to consider different approaches to their organization’s growth strategy. For many firms, the default is to grow organically. For others, mergers and acquisitions are the pursued path forward.

Source: Should M&A be part of your 2018 growth strategy? — Washington Technology

Federal Modernization Requires Focus on Technology, Budgets and People – Nextgov

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Here are tips for agencies looking to speed up their plans.

Source: Federal Modernization Requires Focus on Technology, Budgets and People – Nextgov

Contractor’s Risk of Being Audited Jumps Significantly

in Blog by
PNWC's Government Contracting Update

It appears that DCAA (Defense Contract Audit Agency) has quietly and significantly increased the number of incurred cost audits it intends to perform. In its most recent edition of the DCAA Contract Audit Manual, Section 6-104 (December 2017), DCAA lays out its policy for performing incurred cost audits. In short, it classifies contractors as either high risk or low risk. 100 percent of incurred cost submissions from high risk contractors will be audited and 33 percent of incurred cost submissions from low-risk contractors will be audited.

Source: PNWC’s Government Contracting Update: Contractor’s Risk of Being Audited Jumps Significantly

What happens to bid protests during a shutdown? — FCW

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If a contractor had a beef with a recent federal contract award during the shutdown, their protest would have fallen on deaf ears at the federal agency that adjudicates those complaints until the government starts operations back up.

Source: What happens to bid protests during a shutdown? — FCW

What’s on the GSA’s Busy 2018 IT Agenda?

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From IT Modernization to network upgrades, the General Services Administration has a lot on its plate this year.

Source: What’s on the GSA’s Busy 2018 IT Agenda?

State CIOs stress security, emerging tech and IT consolidation for 2018 — GCN

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The National Association of State CIOs has outlined its legislative priorities for 2018, focusing on harmonizing federal cybersecurity regulations, recognizing state authority in emerging technology and ensuring safeguards for shared intergovernmental data.

Source: State CIOs stress security, emerging tech and IT consolidation for 2018 — GCN

Vendors Can Still Weigh in GAO’s 5-Year Tech Contract – Nextgov

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The oversight office extended the deadline for industry to give advice on its coming modernization contract.

Source: Vendors Can Still Weigh in GAO’s 5-Year Tech Contract – Nextgov

B&P Effort Can Be Direct and Indirect, Depending …

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PNWC's Government Contracting Update

B&P (Bid and Proposal) costs is one of those rare cost elements that can be charged both direct and indirect at the same contractor.

The definition of Bid and Proposal (B&P) costs is found in FAR 31.205-18(a):

“Bid and proposal (B&P) costs” means the costs incurred in preparing, submitting, and supporting bids and proposals (whether or not solicited) on potential Government or non-Government contracts. The term does not include the costs of effort sponsored by a grant or cooperative agreement, or required in the performance of a contract. (underscore added).

Source: PNWC’s Government Contracting Update: B&P Effort Can Be Direct and Indirect, Depending …

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