PNWC’s Government Contracting Update - page 36

T&M (Time and Material) contracts are common Government contract types. These contracts are usually issued when the Government cannot realistically estimate the requirements or the requirements cannot be known at the time of award. Firefighting is a good example. The Government wants to have forest/brush fire fighting capability under contract but the requirements depend on the number of forest fires which cannot be reasonably or accurately forecast.

Source: PNWC’s Government Contracting Update: Caution Regarding Substitutions for Contracted Skill Levels

Internal controls over company-issued purchase cards should be of paramount concern to Government contractors. Regular readers of this blog will recall several reports where the cost of improper purchases using company-issued purchase cards were passed along to the Government and fraud charges resulted. Its serious enough when employees defraud their employer but when those charges pass through to a Government contract, things get much more serious. A contractor cannot just let those involved slip quietly off into the night. There will be consequences for both the individual(s) and the contractor.

Source: PNWC’s Government Contracting Update: More on Setting Up Internal Controls Over Company-Issued Purchase Cards

YWCA of Greater Los Angeles, a 52 year incumbent, protested the Labor Department’s award of a contract to “newbie” Management and Training Corporation (MTC) to operate a Job Corps center in Los Angeles contending that the Labor Department engaged in unequal discussions. The GAO upheld the protest. The reasoning gets a little confusing so hang in there.

Source: PNWC’s Government Contracting Update: Bid Protest Involving Unequal Discussion With Bidders

Huntington Ingalls Shipbuilding has agreed to pay $9.2 million to settle allegations that it violated the False Claims Act by knowingly over-billing the Government for labor charges on Navy and Coast Guard ships at its Pascagoula, Mississippi shipyard.

Source: PNWC’s Government Contracting Update: Government Recovers $9.2 Million in Labor Mischarging Scheme

Cost analysis is the review and evaluation of any separate cost elements and profit or fee in an offeror’s or contractor’s proposal, as needed to determine a fair and reasonable price or to determine cost realism, and the application of judgment to determine how well the proposed costs represent what the cost of the contract should be, assuming reasonable economy and efficiency.

Source: PNWC’s Government Contracting Update: Bid Protests Involving Government Cost Analysis “Alleged” Deficiencies

About a year ago, DCAA (Defense Contract Audit Agency) issued an audit report on costs incurred by Legacy East, New Century Consulting (NCC) questioning more than $50 million in costs billed to the Army between 2008 and 2013. This audit report just came to light after Senator McCaskill (MO) publicized the findings in a letter to the Secretary of Defense.

Source: PNWC’s Government Contracting Update: DCAA Questions $50 Million of a Contractor’s Incurred Costs

The General Services Administration (GSA) just released Government per diem rates for fiscal year 2018 (effective October 1, 2017 through September 30, 2018). Most Government contractors are well aware that travel costs charged to Government contracts are considered reasonable and allowable as long as they do not exceed the maximum rates in the JTRs (Joint Travel Regulations) and the FTRs (Federal Travel Regulations). Although FAR 31.205-46 provides for situations where higher rates are justified, many contractors will go out of their way to avoid the extra Government scrutiny that such justification attracts.

Source: PNWC’s Government Contracting Update: GSA Releases Per Diem Rates for Fiscal Year 2018

ADS Inc, a Defense Contractor based in Virginia Beach, Virginia, has agreed to pay the United States Government $16 million to settle allegations that conspired and caused small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts. The whistleblower who filed the initial lawsuit, where the Government later intervened, will get a check for $2.9 million.

Source: PNWC’s Government Contracting Update: Defense Contractor Pays $16 Million to Settle Allegations it Falsified Its Small/Disadvantaged Status

The Equal Access to Justice Act (EAJA) awards attorneys’ fees and litigation expenses to eligible individuals (and contractors) who are parties to litigation against the Government. There are several qualifications a party must meet to be termed “eligible”. They must have a net worth of less than $2 million (or less than $7 million and less than 500 employees). They must be the prevailing party in the litigation. And, the Government’s position was not substantially justified (see The Equal Access to Justice Act – Briefly for more details). The EAJA is a significant benefit to Government contractors who, for lack of resources, might not be able to pursue valid and legitimate claims against the Government.

Source: PNWC’s Government Contracting Update: Contractor Asks For $706 Thousand EAJA Reimbursement – Receives $412 Thousand

Last December, we reported on a Justice Department announcement that it had indicted a Government contract employee for falsifying her timecard (see Falsified Timecard Leads to False Claim  Against Contractor Employee). Yesterday the Justice Department that the Government contract employee has pled guilty to the charges (see Government Contractor Pleads Guilty To Making False Claims and False Statements).

Source: PNWC’s Government Contracting Update: Contractor Employee Pleads Guilty to Timecard Fraud