Georgia Tech Procurement Assistance Center

Defense companies starting to feel effect of the shutdown

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As the partial government shutdown moves into its third week, some American defense firms are starting to get multi-million-dollar IOUs instead of payments.

Even though Pentagon projects are unaffected — the Defense Department is already funded for fiscal 2019 — the shutdown is squeezing contractors who do work for NASA, the Department of Homeland Security, Federal Aviation Administration, and other federal agencies. Many companies aren’t getting paid, even as they continue to pay the salaries of employees shut out of closed government offices.

Take SAIC and Engility, two of the government’s largest service contractors. Executives for the soon-to-merge companies say the payroll for workers idled by the shutdown comes to $10 million every week. And just three weeks into the freeze, they say, the government is some $40 million to $50 million behind in payments.

Keep reading this article at: https://www.govexec.com/contracting/2019/01/defense-companies-starting-feel-effect-us-government-shutdown/154002

Air Force to host first small business pitch day, with $40 million up for grabs

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Like departments and agencies throughout government, the Air Force is tuning its acquisition methods to get closer the speed of technology, and will be holding its first live pitch day in March, with an available funding pool of $40 million.

The Air Force’s Small Business Innovation Research (SBIR) program has issued a call to start-ups and small businesses—those with fewer than 500 employees—to offer pitches on innovative technologies for secure communications, down-range battlefield operations and digital technologies.

“Mind-blowing ideas are being birthed in U.S. start-up companies, but the Pentagon largely misses out on them,” Will Roper, assistant secretary of the Air Force for Acquisition, Technology and Logistics, said in a release announcing the pitch day. “We have to do business at the speed of ideas so we can both inspire and accelerate start-up creativity towards national security challenges. The only way we’re going to do that is by making sure partnering with the Air Force is easy and energizing.”

Keep reading this article at: https://www.nextgov.com/emerging-tech/2019/01/air-force-host-first-small-business-pitch-day-40-million-grabs/154114/

OFCCP releases three new directives for federal contractors

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The Office of Federal Contractor Compliance Programs’ fiscal year 2019 directives rescind the Active Case Enforcement compliance review procedures, create early resolution procedures, and enhance compliance assistance through the Help Desk and opinion letters.

The U.S. Department of Labor’s Office of Federal Contractor Compliance Programs (OFCCP) has issued three new directives, building on this administration’s nine directives issued in fiscal year 2018. The directives, effective immediately, are all geared toward greater transparency, compliance assistance, and enhanced guidance for federal contractors, while maximizing OFCCP’s limited resources.

Compliance Review Procedures, Directive 2019-01, rescinds Directive 2011-01 and provides that reviews will be conducted in accordance with OFCCP’s Federal Contract Compliance Manual (FCCM). The rescinded 2011 directive set out Active Case Enforcement (ACE) compliance review procedures. OFCCP states that the agency has embedded valuable components of ACE into its standard operating policies and procedures and updated the FCCM in August 2014 to incorporate the full desk audit procedures and closure letter templates. OFCCP concludes that in addition to other agency guidance, such as recent directives on transparency, compensation analysis, use of predetermination notices, and focused reviews, there is no longer a need for the ACE directive to exist as a freestanding guidance document.

Early Resolution Procedures, Directive 2019-02, “will help contractors and OFCCP achieve their mutual goal of equal employment opportunity in federal contracting and reduce the length of compliance evaluations through early and efficient resolutions.” The new procedures apply to all compliance evaluations in which a predetermination notice, notice of violation, or show cause notice has not been issued as of November 30, 2018. The agency’s intent is that the procedures will allow OFCCP and contractors with multiple establishments to cooperatively develop corporatewide compliance. Significantly, depending on the type of violation, if the contractor and OFCCP agree to corporatewide compliance and other terms, OFCCP will not schedule that establishment or all establishments covered by the agreement for a new compliance evaluation for the five-year period, concurrent with monitoring.

Opinion Letters and Help Desk, Directive 2019-03, announces OFCCP’s intention to start issuing opinion letters to parallel the use of this type of guidance tool by other Department of Labor agencies. The directive also announces the agency’s desire to “enhance its Help Desk by making certain Help Desk [inquiries] and responses dynamically available and searchable as a self-service option on OFCCP’s website.” OFCCP staff are directed to implement these enhancements and develop a process for issuing opinion letters.

What do these new directives mean for federal contractors?

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=761632

General contractor can be cited for subcontractor safety violations

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A U.S. Appeals Court judge for the 5th Circuit in New Orleans has ruled that OSHA can cite general contractors — even if their employees are not affected — for subcontractor safety violations.

The ruling came after Labor Secretary Alexander Acosta requested that the 5th Circuit review an OSHA administrative court decision that said a general contractor could only be cited for safety threats to its own employees.

In 2017, a Denver Occupational Safety and Health (OSH) Commission administrative judge ruled that Hensel Phelps could not be cited by the agency for safety hazards created by one of its subcontractors on a project in Austin, Texas. However, the 5th Circuit said more recent rulings have rendered the case law on which the administrative judge based his decision “obsolete” and said that Hensel Phelps could be held responsible for safety on the multi-employer site as a “controlling employer.”

According to court documents, Hensel Phelps hired subcontractor Haynes-Eaglin-Waters (HEW) for a library construction project, and HEW, in turn, hired CVI Development as a sub-subcontractor to perform demolition, excavation and other work. Hensel Phelps and HEW project staff allegedly directed CVI to work in an unsafe excavation area. An OSHA inspector cited both Hensel Phelps and CVI for safety violations. The OSH Commission will now review the matter again, taking the 5th Circuit’s decision into consideration.

Keep reading this article at: https://www.constructiondive.com/news/court-general-contractor-can-be-cited-for-subcontractor-violations/544678/

 

The devil’s in the details as GSA seeks to consolidate the Multiple Award Schedules

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The General Services Administration (GSA) will use the coming year to determine what its recently announced consolidated schedule will look like, according to the official leading the effort.

GSA announced in November the consolidation of 24 multiple award schedules into a single contract vehicle that federal agencies can use to purchase a range of more than 10 million products and services. Each year, agencies purchase about $30 billion worth of products — ranging from office supplies to various IT services — through GSA’s 24 schedules.

“Over this year, we’ll start the consolidation of the MAS program,” said Stephanie Shutt, director of the MAS Program Management Office, speaking at a recent GSA industry day.

Shutt said an integrated project team consisting of MAS members and officials from various acquisition centers and portfolios is doing much of the early work. This team will help make crucial decisions that could shape the single schedule.

For example, Shutt said they are reviewing all existing terms and conditions and determining where overlap exists among special item numbers, which generally categorize the kinds of good and services available. One goal, she said, would be to get rid of redundant or duplicitous conditions.

Keep reading this article at: https://www.nextgov.com/it-modernization/2018/12/devils-details-gsa-seeks-consolidate-multiple-award-schedules/153638/

Users report issues with FedBizOpps website

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Some users are reporting issues accessing the Federal Business Opportunities website — www.fbo.gov — but it is not clear whether the problems are technical in nature or related to the government shutdown.

Nextgov learned of the issue from readers through email and Twitter.

The FBO site is the portal through which the federal government engages with industry regarding procurements, acquisitions and requests for information, quotes or proposals. Any issue with the FBO site could further complicate the situation for contractors, who are dealing with their own batch of shutdown-related problems.   Contracting experts suggest that vendor should submit questions and bids according to previously posted deadlines, even if the contracting agency is shut down.

FBO.gov is operated by the General Services Administration (GSA), which did not respond to questions from Nextgov by press time.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2019/01/users-report-issues-federal-business-opportunities-website/153925/

 

Industry applauds acquisition consolidation, warns of work to be done

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Members of the private sector and industry-representing groups applauded the General Services Administration’s decision to consolidate the 24 multiple award schedules into a single acquisition vehicle, but cautioned that the agency would have to do much more than just consolidation to affect real change.

“Assuming all else stays the same, combining all of the [special item numbers] under one umbrella doesn’t necessarily alleviate the burden to negotiations and buyers,” said Julia Conti, contracts director at CGI Federal, at a Dec. 12 GSA industry day. “Making it easier is not necessarily keeping it on autopilot.”

According to Conti and other members of a panel at the event, the GSA is going to have to rework contracting language, examine a broader array of contracting vehicles and make efforts to reach out to both agencies and the workforce for the MAS consolidation to be truly effective.

Keep reading this article at: https://www.federaltimes.com/acquisition/2018/12/12/industry-applauds-acquisition-consolidation-warns-of-work-to-be-done/

Bill changes small business size measurement term from 3 to 5 years

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On Monday of this week (Dec. 17, 2018), the president signed the “Small Business Runway Extension Act of 2018” into law.   The new law changes the basis on which a business determines whether or not it meets the federal definition of a “small business.”

Our friends at Koprince Law, LLC have published two articles about this change, providing details on how the size status under revenue-based NAICS codes will now be calculated using a five-year average instead of the longstanding three-year average.

As they point out, for some contractors, the new law is great news, as it will allow them to stay small longer.  For others, the opposite is true: the law could force those companies to stay large longer, or even change their self-certifications from “small” to “other than small” in SAM.

Read their articles here:

Pentagon considers cybersecurity certification for its contractors

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In cybersecurity, you’re only as strong as your weakest link.

For the Defense Department, the area with the fewest cyber protections are the defense contractors the department works with, particularly the small businesses that don’t have the expertise or resources to build a robust security posture.

The Pentagon put together a task force to assess whether small businesses within the defense industrial base are complying with the cybersecurity framework published by the National Institute of Standards and Technology and provide assistance to companies that need help.

The department issued a new rule last year requiring vendors to show that they are in compliance with NIST standards or have a plan to get there quickly. Those plans were due Jan. 1.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2018/12/pentagon-considers-cybersecurity-certification-its-contractors/153330/

See GTPAC’s video, template and other resources designed to help contractors comply with the DoD/NIST cybersecurity rules at: http://gtpac.org/cybersecurity-training-video/

New decisions clarify small business minority shareholder protections

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One of the easiest small business affiliation rules to apply is that a person that owns “50 percent or more of a concern’s voting stock … controls or has the power to control the concern.” (13 C.F.R. § 121.103(c)(1))

It is far more difficult, however, for minority owners that own less than 50 percent of a concern’s voting stock to determine what, if any, controls they can have over a small government contractor without jeopardizing their small business status.

The Small Business Administration (SBA) has long held that minority owners may have negative controls to protect their investment without creating affiliation as long as the negative controls do not create control over day-to-day business operations.

In recent cases, SBA’s Office of Hearings and Appeals (OHA) has further clarified what specific arrangements may comply with that rule.

Generally, a minority owner will be found to control a concern if it can veto or block important business actions.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=759238

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