A Government contractor has agreed to pay $45 million to resolve allegations under the False Claims Act (FCA) that it misled the government concerning discounts given to its commercial customers.
A recent DCAA (Defense Contract Audit Agency) incurred cost audit report questioned the cost of a company “Holiday/Christmas Party” on the basis that the cost was unallowable entertainment pursuant to FAR 31.205-14. The contractor countered that the costs were allowable under the employee morale cost principal at FAR 31.205-13.
DCMA (Defense Contract Management Agency) has undertaken a new initiative to improve its business capabilities. The DCMA business capability framework is “…a set of high level contract management functions that underpin the Agency’s strategic plan and captures the results of the daily, multi-functional activities of … personnel in order to provide actionable insight to the Defense Acquisition Enterprise.”
Source: PNWC’s Government Contracting Update: DCMA Reforms to Improve Their Product Offerings
Last Monday (March 6), the Senate passed a joint resolution disapproving the final rule implementing the Fair Pay and Safe Workplaces Executive Order. The House initiated the joint resolution and passed it in February. From what we’ve been able to discern from reading online sources, the President is expected to sign it into law.
Three United States Senators (Wyden, McCaskill, and Markey) published a letter they wrote to the Secretary of Energy (Rick Perry) concerning whistleblower protections for employees of DOE (Department of Energy) contractors.
Source: PNWC’s Government Contracting Update: Senate Doesn’t Like 60 Day Suspension of New Regulations
The U.S. Army Tank-Automotive and Armaments Command (TACOM) is the organization responsible for buying Humvees (High Mobility Multipurpose Wheeled Vehicles). A company named “Ibis Tek” had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) kits for the Humvees.
Source: PNWC’s Government Contracting Update: $6 Million Fraud Case Related to Humvee Production
The U.S. Navy needed 270 gas stoves for base housing in Italy. Using FAR Part 12, Acquisition of Commercial Items, the Navy specified on a brand name or equal basis a model manufactured by Glem Gas and listed as salient characteristics a depth of 60 centimeters and internal volume of 95 liters. To be considered for award, offerors of equal products must include sufficient information to show that the offered items meet the salient characteristics listed in the solicitation. Award was to be made to the lowest-priced, technically acceptable basis.
Source: PNWC’s Government Contracting Update: Navy Erred but Error Had No Impact on Solicitation
An Air Force Master Sergeant has been sentenced to nearly two years in prison and ordered to pay $126 thousand in restitution for accepting bribes. That seems like a pretty stiff sentence compared to similar cases involving much larger sums of money.
The President issued an Executive Order (EO) last Friday designed to add teeth to his regulatory reform agenda. The EO requires agencies to dedicate an individual and a task force infrastructure to enforce his previous EO concerning two for one offsets for any new regulations at zero cost.
Source: PNWC’s Government Contracting Update: Executive Order on Enforcing Regulatory Reform
This week we’ve been discussing the process for closing out Government cost-type (or flexibly-priced) contracts. If you’ve missed any of this series, you can follow these links:
Part 1 – Describes tasks that must be completed to close out a contract.
Part 2 – The Contractor Prepared “Completion Voucher”
Part 3 – Defense Contract Audit Agency’s (DCAA’s) Involvement in the Process
Part 4 – How Contractors Can Expedite the ProcessSource: PNWC’s Government Contracting Update: Contract Close-Out Process – Part 5