May 2019 - page 5

REK Associates is a service-disabled veteran owned small business based in Williamsburg VA. It appears that the Company has a smattering of Government contractors and very little in the way of commercial work. It’s website touts its expertise in range, construction and environmental projects.

SOURCE: Army Civilian Employee Accepted Bribes in Exchange for Sensitive Procurement Information

Nearly a year ago, the Defense Department proposed a change to its FAR Supplement (DFARS or DoD FAR Supplement) that would allow contracting officers to close out contracts (or groups of contracts( without completing a reconciliation audit or other corrective action under certain circumstances (see DoD FAR Proposed Regulation to Expedite Closeout of Old Contracts). Although published as a proposed change, it followed a class deviation to FAR 4.804-5(a)(3) which effectively implemented the new policy (see Special Closeout Authority for Old Contracts).

SOURCE: Expedited Closeout for Contracts Greater Than 17 Years

Before awarding any contract, contracting officers must make an affirmative statement that the contract price is fair and reasonable. When competition exists, price reasonableness can usually be established without requiring any additional supporting data. However, for sole source acquisitions, contracting officers must obtain the data necessary to establish price reasonableness. For contracting actions subject to TINA (Truth in Negotiations Act), the requirement to furnish certified cost or pricing data serves this purpose. However, for actions not subject to TINA, contractors may be requested to prepare and submit additional data to support their proposed prices.

SOURCE: Offerors’ Failure to Furnish Data Requested by the Contracting Officer

Last month, the Defense Department issued a “Class Deviation” that affects contractors performing contract audits for the Department. Contracting officers are now required to use a new clause (described later) when contracting with accounting firms providing financial statement auditing or audit remediation services to the Defense Department in support of audits. Or, in other words, incurred cost audits that were once the sole bailiwick of DCAA (Defense Contract Audit Agency).

Source: PNWC’s Government Contracting Update: Full Disclosure of Disciplinary Actions Required by CPA Firms Engaged in Government Auditing