Late last week, owners of two San Diego area companies were arraigned in federal court on charges they fraudulently obtained more than $11 million in federal contracts that were set aside for service-disable veteran-owned businesses (SDVOBs).
Source: PNWC’s Government Contracting Update: Another “Rent-a-Vet” Scheme Uncovered
During sentencing, a judge questioned why a high-level civilian employee of the Federal Government, who was well compensated, felt the need to steal from the charities for who he was ostensibly raising support. A rhetorical question, of course – one for which no answer was proffered. He should have plenty of time now to mull it over, he will be spending the next year and two months in a Federal prison. He’ll also need to cover a $5 thousand dollar fine and pay $50 thousand in restitution from the charities he stole from.
Source: PNWC’s Government Contracting Update: Solicitation Donations for Charities – While on the Job
Earlier this month, The GAO (Government Accountability Office) published proposed changes to its Yellow Book, also known as Generally Accepted Government Auditing Standards or GAGAS and invited public comments. These Government Auditing Standards are followed by auditors performing audits of Government programs including contract audits performed by the Defense Contract Audit Agency (DCAA). Whether Government contractors realize it or not, whenever they are being audited, the auditors are following the auditing principles embodied in GAO’s “Yellow Book”.
Source: PNWC’s Government Contracting Update: GAO Issues Exposure Draft of New “Yellow Book”
Yesterday, the President issued an Executive Order stating that “It shall be the policy of the executive branch to buy American and hire American”. The focus of this EO is on the American steel industry and the H1-B visa program.
Source: PNWC’s Government Contracting Update: Buy American – Hire American
Back in 2012, we discussed the FAR (Federal Acquisition Regulation) 31.205-29 cost principle on plant protection costs (see Plant Protection Costs). While such costs are categorically allowable, we noted that the growing significance of such costs in the post 9/11 era was drawing increased scrutiny by contract auditors. At that time, the concern seemed to be one of allocation – should the cost be charged direct or indirect?
Source: PNWC’s Government Contracting Update: Plant Protection – In-House or Outsourced
The FAR (Federal Acquisition Regulation) Cost Principles Guide was recently updated through FAC (Federal Acquisition Circular 2005-95 (January 2017). The previous update was September 2014 (through FAC 2005-76). Here’s how DCAA (Defense Contract Audit Agency) introduces the guide:
Source: PNWC’s Government Contracting Update: DCAA Publishes 2017 Version of the FAR Cost Principles Guide
Now that DCAA (Defense Contract Audit Agency) is nearly current in its audits of contractor incurred cost proposals and the new Administration has lifted it federal hiring freeze, the Agency is preparing to hire as many as 500 new auditors and may be turning its attention to other types of audits that have been curtailed in favor of higher priority assignments. One of those program areas where DCAA has been eager to resume, with the DoD Office of Inspector General’s active encouragement, is contractor compliance with the Truth-in-Negotiations Act (TINA).
Source: PNWC’s Government Contracting Update: Is Your Contract Subject to a TINA Audit?
An estimated 70 million people in the United States – nearly one in three adults – have a prior arrest or conviction record. Congress believes that a conviction in one’s past shouldn’t be a life sentence to joblessness and is following many states lead by introducing legislation to give everyone an opportunity to work for a better life.
Source: PNWC’s Government Contracting Update: Fair Chance Act – Proposed Legislation in the Senate and House
Section 702 of the Bipartisan Budget Act (BBA) of 2013 significantly reduced the cap on compensation charged to Government contracts. The old statutory formula applicable to contracts awarded prior to June 24, 2014 now sits at $1,144,888. The new cap applicable to contracts awarded after that date is $487,000 and applies to all contractor employees on contracts awarded by all executive agencies.
Harkcon Inc was an unsuccessful bidder on a Coast Guard contract to provide training support services at Coast Guard training centers and support units throughout the country. When the award was made to Metris LLC, Harkcon alleged that Metris had an unequal access to information OCI (Organizational Conflict of Interest) that the Coast Guard failed to investigate. You see, Metris had hired a former Coast Guard employee who, while employed by the Coast Guard, was the chief of the Coast Guard’s Forces Readiness Command’s Training Division where Harkcon (the protestor) had worked as a subcontractor. His role as chief provided him access to nonpublic, competitively useful information about Harkcon.
Source: PNWC’s Government Contracting Update: Organization Conflict of Interest Appeal Denied