October 15, 2014 by cs
Compliance with the limitations on subcontracting are not adequately being monitored by the contracting officers responsible for 8(a) contracts, according to a recent GAO report.
After reviewing a representative sample of ten 8(a) contracts, the GAO determined that contracting officers effectively monitored subcontracting limit compliance on two of those contracts. In other cases, agency contracting officers failed to effectively monitor compliance, even in situations presenting a heightened risk of potential violations–such as where ineligible incumbents were serving as subcontractors.
The GAO report documents “confusion” among contracting officers regarding their obligations to ensure compliance with subcontracting limits. Some contracting officers were confused about what the FAR, Small Business Act, and SBA partnership agreements require. Other contracting officers seemed to assume that their CORs were primarily responsible for ensuring compliance with the subcontracting limits – although all 10 of the CORs in question “stated that contracting officers have not delegated this responsibility to them and they do not take steps to monitor the amount of subcontracted work.”
Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/8a-subcontracting-limitations-compliance-oversight-lacking/
September 4, 2014 by cs
Filing claims against the government is not contractors’ preferred method of resolving problems on a federal project, but often contractors are left with little choice with federal procurement officials spread thin. For example, the U.S. Army Corps of Engineers has not moved on a significant number of pending changes and refused to pay the contract balance because the Corps has assessed an equal amount in liquidated damages for delay. The delay was caused by a differing site condition, for which the contractor submitted a claim for time and money. After waiting 60 days, the Corps responded by stating that it will issue the contracting officer’s final decision in seven months. Meanwhile, the contractor continues to spend money trying to close out the project.
How can contractors speed up the claims process, recover on favorable terms, and avoid throwing good money after bad on a multiyear dispute resolution process? The answer: Unbundle your claims and file as many under $50,000 or $100,000 as possible to take advantage of the various board of contract appeals’ expedited or accelerated procedures. Then consolidate all expedited appeals and push aggressively toward a fast and cost-effective global resolution.
Keep reading this article at: http://www.foxrothschild.com/newspubs/newspubsArticle.aspx?id=15032395091
August 19, 2014 by cs
When contracting fails, there are several common reasons offered: the source selection and bid protest requirements; onerous acquisition regulations; an understaffed, poorly trained workforce. However, many contracting officers can relate to significant delays during the planning phase, particularly to difficulties obtaining an acquisition plan (AP).
Often it’s developed well after the contracting request for action. When this occurs, it places contract managers in the unenviable position of delaying RFP release, thus risking agency funding, but more importantly, jeopardizing mission success. The alternative is to jump into a contracting process with ambiguous goals or results. Thus, for all the debate about the effectiveness of government contracting, the success or failure of programs involving government contracting is actually determined very early, often unfortunately before the contracting officer’s involvement—that is, during acquisition planning.
Eyes glaze over when someone references the Federal Acquisition Regulation (FAR), and many are on record as wanting to modify, reduce, or even abolish it. However, the FAR’s Part 7 acquisition planning guidance provides a great roadmap to all the many considerations necessary before satisfying a government need via contract. The program office must take non-delegable responsibility to figure out what, why, when, where, and how they will obtain acquired resources to support their goals. This shouldn’t be another paperwork drill, completed by support contractors or the contracting officer and subsequently filed away. However, that sometimes is the case.
Keep reading this article at: http://www.federaltimes.com/article/20140814/BLG06/308140006/Get-contracting-plan-place-early
Defense acquisition rule requiring contractors to report counterfeit parts set to be included in the FAR
June 30, 2014 by cs
In May, the Department of Defense amended the Defense Federal Acquisition Regulation Supplement (DFARS) to require certain contractors to detect and report counterfeit electronic parts. (See DFARS rule on “Detection and Avoidance of Counterfeit Electronic Parts” by clicking here.)
Now, the Federal Acquisition Regulation (FAR) Council has published a proposed rule to greatly expand counterfeit reporting obligations. The newly proposed rule sets forth sweeping requirements for contractors and subcontractors to report nonconforming items.
Unlike the DFARS rule, which limits application to particular electronic parts and a certain category of contractors, the proposed FAR rule extends beyond electronic parts and specific contractors. In fact, the proposed rule is designed to effect all contracts for acquisition of supplies or services that include supplies.
Under the proposed rule, contractors and subcontractors at all tiers must screen the Government-Industry Exchange Program (GIDEP) as part of their quality control processes. Further, the proposed rule requires reporting in GIDEP of any “common” items purchased that are counterfeit, suspected to be counterfeit, or contain “major nonconformance” or “critical nonconformance.” In addition, contractors must notify Contracting Officers, in writing, when they become aware that “any end item, component, subassembly, part or material contracted in supplies purchased by the government” is counterfeit or suspected to be counterfeit.
Written comments on the proposed rule are due by August 11, 2014. Comments are to be submitted via the Federal eRulemaking portal by searching for ‘‘FAR Case 2013–002’’. Select the link ‘‘Comment Now’’ that corresponds with ‘‘FAR Case 2013–002.’’ Follow the instructions provided at the ‘‘Comment Now’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2013-002’’ on your attached document. Comments may be faxed to 202–501–4067 or mailed to: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405.
June 16, 2014 by cs
A new rule would limit the amount contractors could charge the government for any of their employees’ salaries under cost-reimbursement contracts.
Currently contractors can charge back $487,000 for employee salaries, but the ceiling only applies to top senior executives. With the new Federal Acquisition Regulation rule, that limit would be expanded to all employees including scientists and engineers.
The final rule, issued May 30, would only affect the Defense Department, NASA and the Coast Guard, and applies retroactively to compensation costs on government contracts signed after Dec. 31, 2011.
Keep reading this article at: http://www.fiercegovernment.com/story/contractor-pay-cap-will-apply-all-employees-under-new-rule/2014-06-03
June 11, 2014 by cs
Under the FAR’s limitations on subcontracting clause, the work to be performed by a 1099 independent contractor did not count toward the prime contractor’s performance.
In a recent bid protest decision, the GAO held that a procuring agency properly rejected an offeror’s proposal because the offeror was relying, in part, on an independent contractor to meet its obligations under the limitations on subcontracting clause.
The GAO’s decision in MindPoint Group, LLC, B-409562 (May 8, 2014) involved a Department of Justice solicitation for information technology infrastructure support. The proposal was issued as a set-aside for Economically Disadvantaged Woman Owned Small Businesses (EDWOSBs), and incorporated FAR 52.219-14, the standard limitation on subcontracting clause. For a services contract, FAR 52.219-14 requires the EDWOSB to perform at least 50 percent of the cost of contract performance incurred for personnel with its own employees.
MindPoint Group, LLC submitted a proposal. MindPoint’s proposal stated that MindPoint would self-perform 53.3 percent of the contract effort using seven individuals, including an individual designated as the “Systems Administrator MS.” However, MindPoint’s proposal included a letter of commitment stating that the Systems Administrator MS would be an “independent consultant,” and MindPoint’s price proposal referred to the individual as a “1099 Consultant.”
Keep reading this article at: http://smallgovcon.com/gaobidprotests/limitations-on-subcontracting-1099-contractors-work-didnt-count/
June 6, 2014 by cs
The Contracting Education Academy at Georgia Tech is offering a course focusing on the Fundamentals of Cost & Price Analysis in government contracting. The course begins June 16, 2014, and will be held at the Global Learning Center located on the midtown Atlanta campus of the Georgia Institute of Technology.
To see details or to register, click here.
The Academy’s comprehensive, two-week course begins with an in-depth review of the market research process, and provides instruction to help students understand and analyze contractor pricing strategies.
Attendees will learn to accomplish cost-volume-profit analysis, calculate contribution margin estimates, and develop cost estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4.
After learning the basic elements of price and cost analysis, students will build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a weighted guidelines assessment.
This course is ideal for new hires in the contracting career field. In addition, for government contractors, this course provides invaluable insights into the government contracting decision-making process.
Student performance will be assessed by graded exams on math fundamentals and applied course material as well as an exercise for student participation and completion of negotiations.
CON 170 – Fundamentals of Cost & Price Analysis is Defense Acquisition University-equivalent training that satisfies the FAC-C and DAWIA certification programs. Students successfully completing the course earn 7.35 continuing education units.
For more information or to register, please visit: http://www.pe.gatech.edu/courses/con-170-fundamentals-cost-and-price-analysis
June 3, 2014 by cs
Sometimes, it’s the most subtle nuances in a phrase that matter most — and for small government contractors, that appears to be the case in the federal procurement rulebook.
The Federal Acquisition Regulation, a long list of government-wide contracting rules established by the heads of several federal agencies, requires all large companies bidding on prime contracts to specify what percentage of the money awarded would flow through to small-business subcontractors.
The rule is meant to ensure that small firms “have the maximum practicable opportunity to participate in performing contracts,” according to the FAR, and to help the government meet its annual goal of awarding 35.9 percent of all subcontracting dollars to small companies. Collectively, federal agencies have missed that mark each of the last five years.
Bob Justis says one odd word on page 1,343 in the rulebook isn’t helping.
“Out of all your planned subcontracting dollars, you’re required to set aside some percentage of that for small businesses,” Justis, head of Justis Consulting, a contracting proposal development firm based in Washington, said in a recent interview. “However, it’s required to be stated as a percentage of your total subcontract dollars — not as a percentage of the total contract dollars.”
It’s a subtle but important distinction, Justis explained, because a large prime contractor can, based on that rule, pledge to commit 40 percent of its subcontracting dollars to small businesses. If the company then handles all the work itself, resulting in a total subcontracting spend of zero, it still met its small-business subcontracting goal.
After all, 40 percent of nothing is nothing.
Keep reading this article at: http://m.washingtonpost.com/business/on-small-business/how-one-small-word-change-could-mean-many-more-contracting-dollars-for-small-businesses/2014/05/22/30b4c0d8-e106-11e3-9743-bb9b59cde7b9_story.html
May 22, 2014 by cs
Learning the Federal Acquisition Regulation — the FAR — is a daunting, but necessary, undertaking for both contracting personnel and contractors alike.
The 2,000-page FAR is the rule book federal agencies use to plan, award, and administer virtually all government contracts. Contracting officers must master the FAR in order to construct contracts correctly. Likewise, contractors must learn the FAR in order to compete more effectively and execute contract work in accordance with the rules.
On June 3, 2014, Georgia Tech’s Contracting Education Academy is kicking-off an intensive four-day course that helps participants learn how to identify the basic principles of government contracting, access online resources, and locate, cite, and interpret information in the FAR and agency supplements to the FAR such as the Defense Federal Acquisition Regulation Supplement (DFARS).
For more information or to register, click here.
CON 090-1: Contracting Overview of the FAR is actually the first of four modules in the CON 090 – Federal Acquisition Regulation (FAR) Fundamentals series. Each module involves limited lecture, and features an exercise-based curriculum that takes a look at the federal acquisition environment from a macro-level.
The Contracting Education Academy at Georgia Tech (The Academy) is an approved equivalency training provider to the Defense Acquisition University (DAU) and provides continuing education training to Acquisition and Government Contracting professionals as well as to business professionals working for government contractors or pursuing opportunities in federal contracting.
May 19, 2014 by cs
Customs and Border Protection’s IT technology acquisition operation is developing ways to help explain to unsuccessful contract bidders why they lost out to competitors, according to the agency’s top IT acquisition official.
In remarks at a presentation on acquisition and programming at FOSE in Washington, D.C., Guy Torres, CBP director of IT contracting, said he and his legal team had developed an “explanation plus” document to provide more information to vendors bidding under Federal Acquisition Regulation. The FAR can restrict providing explicit information on some bids to vendors. Torres said he wanted to provide some information to help vendors understand why they may have lost, instead of providing only a short statement that they didn’t get a contract.
Keep reading this article at: http://fcw.com/articles/2014/05/13/cbp-informs-losing-vendors.aspx