PNWC’s Government Contracting Update - page 51

Earlier this year, several House Democrats and Republicans introduced a bipartisan bill to help solidify ridesharing and other innovative transportation services as part of the broader Government transportation “ecosystem”. The Bill would give federal employees greater flexibility and choice when they travel on official business, and, according to the press release, “bring government travel into the 231st century”.

Source: PNWC’s Government Contracting Update: Contractors May Be Able To Save Money by Using Alternative (Modern) Transportation Options

Pass-through costs are indirect costs and profit/fee applied to subcontract costs. Excessive pass-through costs are those that add no or negligible value to a contract. No or negligible value means that the contractor could not demonstrate to the contracting officer’s satisfaction that its effort adds value to the contract in accomplishing the work to be performed under the contract.

Source: PNWC’s Government Contracting Update: Excessive Pass-Through Costs – Audit Oversight

Existing statutes and regulations require the Government to ensure that its requirements with respect to a procurement of supplies or services are stated in terms of (i) functions to be performed, (ii) performance required, or (iii) essential physical characteristics. This is necessary so that commercial items, to the extent practical, can be procured to fulfill such requirements and sellers of commercial items are provided an opportunity to compete in any procurement to fill such requirements (see 10 USC 2377).

Source: PNWC’s Government Contracting Update: Commercial Item Preference – Market Research Still Required

Performance-based payments (PBPs) for non-cost-reimbursable contracts are the Government’s preferred financing method when the contracting officer finds them practical and the contractor agrees to their use (see FAR 32.1001(a)). The 2017 NDAA, as we discussed yesterday, removes the qualification “when the contracting officer finds them practical and the contractor agrees to their use” making PBPs the unquestionable preferred financing method. There’s a lot to like with PBPs in lieu of Progress Payments based on costs. With PBPs, once contractors achieve a predetermined milestone, it gets paid. Progress payments on the other hand require considerable administrative effort including cost roll-ups, liquidation rates, subcontractor billings, loss ratio calculations and more.

Source: PNWC’s Government Contracting Update: Contract Financing – Performance-Based Payments – Generally

We’re beginning to think that Congress believes that the Defense Contract Audit Agency (DCAA) has become a stumbling block to efficient and effective Government contracting practices. Last week in discussing Sec. 820 of the 2017 NDAA (National Defense Authorization Act), we noted a provision that will effectively eliminate DCAA from auditing indirect costs in favor of privatization. DCAA can still audit the direct costs but will have no role in auditing indirect costs. We’re not sure how that will work out in practice however. One cannot develop indirect expense rates without auditing both direct and indirect costs. Someone, either the independent public accountant or DCAA is going to have to marry up the two sides to come up with final rates. And, most likely, the two organizations will be on different auditing cycles which may be the undoing of the entire concept.

Source: PNWC’s Government Contracting Update: DCAA Gets Cut Off at the Pass – Again

There have been many comptroller bid protest decisions involving late proposal submissions. Typically the protestor cites some extenuating circumstances as to why the Government should have but did not receive a timely submission. The Comptroller General (CG) however has never been very understanding of these arguments. , The CG typically finds, citing the Federal Acquisition Regulations (FAR) that it is the offerors responsibility to make sure the Government received the proposal. Its never sufficient or safe to assume that since you mailed, emailed, or FedEx’d a submission, that the correct Government office received it.

Source: PNWC’s Government Contracting Update: When Submitting Proposals, Verify Receipt

This week we’ve been discussing Sec 820 of the fiscal year 2017 NDAA (National Defense Authorization Act) which deals with Cost Accounting Standards, the Defense Cost Accounting Standards Board (DCASB) and privatizing some of DCAA’s (Defense Contract Audit Agency) contract audit functions.

Source: PNWC’s Government Contracting Update: What is a Non-Traditional Contractor?

We’ve spent this week covering most of the provisions of Sec 820 of the fiscal year 2017 National Defense Authorization Act (NDAA). On Monday we discussed how Congress intends to rejuvenate the CAS (Cost Accounting Standards) Board. On Tuesday, we discussed the new Defense Cost Accounting Standards Board (DCASB) and yesterday, we discussed the impending privatization of a significant portion of DCAA’s (Defense Contract Audit Agency’s) workload, e.g. audits of contractor indirect costs.

Source: PNWC’s Government Contracting Update: Defense Cost Accounting Standards – Part 4

This week, we’ve been covering various provisions of Sec 820 of the 2017 NDAA (National Defense Authorization Act). Monday we covered how the new law is designed to get the CAS (Cost Accounting Standards) Board moving once again. Yesterday we discussed the formation and duties of a new Defense CAS Board (DCASB). Today we another aspect of Sec 820 that moves to privatize some of the contract auditing function by moving certain audits from DCAA (Defense Contract Audit Agency) to commercial firms.

Source: PNWC’s Government Contracting Update: Defense Cost Accounting Standards – Part 3

We are continuing to unpack the Defense Const Accounting Standards provision (Sec. 820) included in the 2017 NDAA (National Defense Authorization Act). Yesterday we discussed Sec 820’s provisions designed to reinvigorate the CAS (Cost Accounting Standards) Board (See Part 1). Today we discuss the section dealing with the creation of a Defense Cost Accounting Standards Board (DCASB), its purpose and composition.

Source: PNWC’s Government Contracting Update: Defense Cost Accounting Standards – Part 2