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PNWC’s Government Contracting Update

DoD Proposes to Double the CPSR Threshold

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PNWC's Government Contracting Update

The Defense Department has issued a proposed rule to increase the CPSR (Contractor Purchasing System Review) threshold from $25 million to $50 million in sales to the Government.

SOURCE: DoD Proposes to Double the CPSR Threshold

Recommendations to Prevent Overcharging by Sole-Source Contractors

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PNWC's Government Contracting Update

For the past two days, we have been discussing the TransDigm case where the DoD contractor significantly overcharged the Government for spare parts. Parts 1 and 2 can be accessed here and here, respectively.

SOURCE: Recommendations to Prevent Overcharging by Sole-Source Contractors

DoD Removes “Reasonable Expectation” Rule from Adequate Price Competition

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PNWC's Government Contracting Update

The FAR (Federal Acquisition Regulation) has been amended to eliminate the so-called “Reasonable Expectation” rule when it comes to awarding contracts based on adequate price competition for DoD, NASA, and the Coast Guard procurements.

SOURCE: DoD Removes “Reasonable Expectation” Rule from Adequate Price Competition

Similar Proposals – One Was Considered Weak – the Other Was Considered Strong

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PNWC's Government Contracting Update

The Air Force issued a solicitation for someone to collect, analyze, synthesize and process scientific and technical information at its Homeland Defense and Security Information Analysis Center (essentially a publicly accessible website) . Information International Associates, Inc (IIA) was one of several unsuccessful bidders IIA challenged the award. IIA claimed that the Air Force unreasonably evaluated awardee’s proposal as containing a strength where the added benefit identified by the Air Force was not consistent with the terms of the solicitation while evaluating IIA’s proposal as containing a weakness when it was not materially different than the awardee’s proposal. (Well, as they say, one company’s strength is another company’s weakness.)

SOURCE: Similar Proposals – One Was Considered Weak – the Other Was Considered Strong

What is Contract Audit Followup – (CAFU) – Part 3?

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PNWC's Government Contracting Update

This is the third and final posting on DoD’s CAFU (Contract Audit Follow-Up) system. If you missed either of the first two segments, go to Part 1 and Part 2.

SOURCE: What is Contract Audit Followup – (CAFU) – Part 3?

What is Contract Audit Follow-Up (CAFU) – Part 2?

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PNWC's Government Contracting Update

Yesterday we began a short series on the CAFU (Contract Audit Follow-Up) System with a description of what the system does and the authority by which it was established. If you missed Part 1, read it here.

SOURCE: What is Contract Audit Follow-Up (CAFU) – Part 2?

What is Contract Audit Follow-up (CAFU) – Part 1?

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PNWC's Government Contracting Update

The Contract Audit Follow-up System or CAFU  (pronounced ‘ka fu’), is a Defense Department tracking system, administered by the Department’s Office of Inspector General (OIG) to monitor the resolution of contract audit reports (usually those issued by DCAA but also those issued by Independent Public Accountants (IPAs) hired by DoD to conduct contract audits.

SOURCE: What is Contract Audit Follow-up (CAFU) – Part 1?

CORs Have a Role in Reviewing Incurred Cost

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PNWC's Government Contracting Update

Typically, incurred cost audits and audits of interim requests for payment (i.e. voucher reviews) are performed by the contract auditor (DCAA or Defense Contract Audit Agency for DoD contracts) and reports are sent to the contracting officer for resolution if there are any findings noted.

SOURCE: CORs Have a Role in Reviewing Incurred Cost

Army Civilian Employee Accepted Bribes in Exchange for Sensitive Procurement Information

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PNWC's Government Contracting Update

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

Expedited Closeout for Contracts Greater Than 17 Years

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PNWC's Government Contracting Update

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

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