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PNWC’s Government Contracting Update

Contract Funds Withheld for Non-Conforming Deliveries

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PNWC's Government Contracting Update

There’s a contract clause included in all firm-fixed price research and development contracts that allows the Government to reject non-conforming work and make an equitable price reduction if its not fixed. FAR 52.246-7, Inspection of Research and Development – Fixed Price requires, among other things, that contractors implement and maintain an inspection system acceptable to the Government and maintain complete records of such inspections and make those records available to the Government during contract performance and for as long afterwards as the contract requires. This clause also give the Government the right to perform its own inspections.

Source: PNWC’s Government Contracting Update: Contract Funds Withheld for Non-Conforming Deliveries

DoD Contracting Officers Cannot Withhold Consent to Subcontract where Purchasing System has been Approved

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PNWC's Government Contracting Update

DoD issued a final rule amending its FAR Supplement (DFARS) that for Defense contractors with approved accounting system, contracting officers are not permitted to withhold “consent to subcontract” unless it has written approval from a program manager.

Source: PNWC’s Government Contracting Update: DoD Contracting Officers Cannot Withhold Consent to Subcontract where Purchasing System has been Approved

DoD Removes a Definition from its Procurement Regulations

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PNWC's Government Contracting Update

Did you notice that the number of definitions listed in the Defense FAR Supplement (DFARS) is now shorter? The Defense Department just eliminated the definition of “General public and non-Governmental entities”. The removed definition stated that “General public” and “non-governmental entities” as used in the definition of commercial item” at FAR 2.101, do not include the Federal Government or a State, local or foreign government.

Source: PNWC’s Government Contracting Update: DoD Removes a Definition from its Procurement Regulations

The Importance of Flowing Down Required Contract Clauses to Subcontractors

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PNWC's Government Contracting Update

Tishman Interiors was the prime contractor on a renovation project at the Federal Reserve Bank in New York. It subcontracted electrical and cable installation work to three different subcontractors. In came the auditors – auditors from the Labor Department’s Wage and Hour Division (WHD). You know this story isn’t going to go well for the contractor. We don’t know what instigated WHD’s investigation. It could have been random or it could have been based on a call to WHD’s hotline. WHD’s press release did not say.

Source: PNWC’s Government Contracting Update: The Importance of Flowing Down Required Contract Clauses to Subcontractors

Government Must Specify a “Sum Certain” When Issuing Final Decisions

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PNWC's Government Contracting Update

A “claim” according to FAR (Federal Acquisition Regulation) 2.101 is a written demand or written assertion by one of the contracting parties (could be the contractor or the Government) seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract. Further, a written demand or written assertion by the contractor seeking payment of money exceeding $100 thousand is not a claim unless certified.

Source: PNWC’s Government Contracting Update: Government Must Specify a “Sum Certain” When Issuing Final Decisions

Pilot Program to Accelerate Contracting and Pricing Processes

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PNWC's Government Contracting Update

Section 890 of the 2019 NDAA (National Defense Authorization Act) authorized the Defense Department to conduct a pilot program with contracts in excess of $50 million (excluding those that are part of a major defense acquisition program) by

Source: PNWC’s Government Contracting Update: Pilot Program to Accelerate Contracting and Pricing Processes

SBA Road Tour to Engage Small Businesses Working On Innovative Research

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PNWC's Government Contracting Update

The SBA (Small Business Administration) announced last week that it will launch a 16 city road tour connecting entrepreneurs working on advanced technology to the country’s largest source of early state funding – the SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs. These programs, also known as America’s “Seed Fund” is led by the SBA with eleven participating federal agencies.

Source: PNWC’s Government Contracting Update: SBA Road Tour to Engage Small Businesses Working On Innovative Research

“Rent-a-Vet” Schemes Still Going Strong

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PNWC's Government Contracting Update

The Justice Department just announced the indictment of a Michigan business owner for fraudulently obtaining nearly $12 million in Government construction contracts over an eight-year period by falsely claiming the company was owned and controlled by a service-disabled veteran.

Source: PNWC’s Government Contracting Update: “Rent-a-Vet” Schemes Still Going Strong

SDVO Status Requires Ownership and Control

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PNWC's Government Contracting Update

To compete for a Government contract as an SDVO (service-disabled-veteran-owned) limited liability company (LLC), a service-disable veteran must own and control the company. SBA regulations define ownership and control for LLCs (see 13 CFR 125.12 and 13). To show ownership for an LLC, one or more service-disable veterans must “unconditionally and directly own at least 51 percent interest. Regarding control, an LLC demonstrates control by a service-disabled veteran by showing that the service-disabled veteran:

Source: PNWC’s Government Contracting Update: SDVO Status Requires Ownership and Control

Future 8(a) Status is not an Evaluation Factor if not Specifically Stated

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PNWC's Government Contracting Update

The SBA’s 8(a) business development program is designed to help small, disadvantaged businesses compete in the federal marketplace. It has helped thousands of aspiring entrepreneurs to gain access to Government contracts. To qualify, small businesses must be owned and controlled at least 51 percent by socially and economically disadvantaged individuals who are American citizens. It also helps to be able to demonstrate potential for business success and possess good character.

Source: PNWC’s Government Contracting Update: Future 8(a) Status is not an Evaluation Factor if not Specifically Stated

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