Georgia Tech Procurement Assistance Center

GAO says strict bid compliance with Buy American Act exception requirements not necessary

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The GAO recently sustained a protest finding that it was unreasonable for the Department of Energy (DOE) to reject a bid simply because it failed to strictly comply with all of the requirements for an exception to the BAA.

In Addison Constr. Co., B-416525, Addison Construction Company submitted a bid to construct a capacitor bank for DOE in Arizona. Addison’s bid informed DOE that a portion of the construction materials used would be foreign, not domestic. Addison’s bid requested an exception to the BAA pursuant to FAR clause 52.225-9, available when the cost of domestic construction material is “unreasonable” (i.e., it exceeds the cost of foreign material by more than six percent).

Under FAR clause 52.225-9, a contractor seeking an exception to the BAA construction materials requirement on the basis of unreasonable cost must include the following with its bid: price, quantity, unit of measure, and a description of the foreign and domestic materials at issue, along with a detailed justification for the use of foreign construction materials, a “reasonable survey of the market,” and a completed price comparison table in the format provided in FAR clause 52.225-9(d). In addition, the clause requires the contractor to provide the time of delivery or availability of the materials, the location of the construction project, specific supplier information (including the name, address, and telephone number for the supplier, and a copy of the supplier’s response or a summary thereof), and “other applicable supporting information.”

Keep reading this article at: https://www.lexology.com/library/detail.aspx?g=5c1472f9-6d91-4b8e-8983-ca1b544bf880 

DoD issues final guidance for assessing contractor compliance with NIST SP 800-171

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The Department of Defense (DoD) recently issued final guidance for requiring activities to assess contractors’ System Security Plans (SSPs) and their implementation of the security controls in National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171.

A draft of this guidance was made available for public comment in April 2018.  As noted in an earlier post on the draft guidance, DoD’s proposed approach raised significant questions as to what role offerors’ implementation of the security controls in NIST SP 800-171 would play in bid protests, contract performance, and post award audits.  In the memorandum accompanying the final guidance documents, DoD notes that it has incorporated comments it received from the public into the final guidance.  As discussed below, although the DoD has addressed some of the issues raised by the April draft, the final guidance adds some additional concerns and ambiguities.

The final guidance consists of two documents.  The first document is “Guidance for Assessing Compliance of and Enhancing Protections for a Contractor’s Internal Unclassified Information System,” which provides direction to requiring activities for including evaluation criteria in solicitations and in contracts for assessing contractor compliance with NIST SP 800-171.  The second document is “DoD Guidance for Reviewing System Security Plans and the NIST SP 800-171 Security Requirements Not Yet Implemented,” which addresses how DoD should assess the impact and risk of NIST SP 800-171 security controls that a contractor has not yet implemented.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2018/11/dod-issues-final-guidance-for-assessing-contractor-compliance-with-nist-sp-800-171/

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/

Can employees of government contractors use medical marijuana?

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While many states have enacted legislation permitting marijuana use in some form (you can find more information on marijuana in the workplace in VA, MD, and D.C. here), marijuana use is still prohibited under federal law.

Specifically, under the federal Controlled Substances Act, marijuana is prohibited as a Schedule 1 illegal drug. While the Americans with Disabilities Act (ADA), prohibits employers from discriminating against qualified individuals on the basis of a disability and requires employers to provide reasonable accommodations to employees with disabilities, the ADA specifically excludes protection for individuals “currently engaging in the illegal use of drugs.”

“Illegal use of drugs” refers to drugs that are unlawful under the Controlled Substances Act, including marijuana, leading courts to historically find that employers are not required to provide accommodations for the use of medicinal marijuana under the ADA.

More importantly, federal employees and contractors are subject to the Drug Free Workplace Act, which requires federal contractors to meet certain requirements in order to be eligible for federal contacts. Under this Act, any company that receives a federal contact of at least $100,000 and any organization that receives a federal grant of any amount, must maintain a drug-free workplace policy and a drug-free awareness program. The drug-free policies apply to contract employees who are directly engaged in the performance of contract work. While technically the Act only covers employees working directly on the grant, a drug-free workplace for all employees of the organization is advisable.

Keep reading this article at: https://www.generalcounsellaw.com/medical-marijuana-in-the-workplace-of-government-contractors

Read more about this subject at: https://gtpac.org/2017/11/15/4-things-for-federal-contractors-to-remember-about-the-drug-free-workplace-act

Recent GAO decisions underscore the need for precision in identifying corporate entities during the procurement process

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Many government contractors are part of corporate families consisting of multiple corporate entities.  One entity may be named as the official contracting party, but use the resources of affiliates, parents, or subsidiaries during performance.

The distinction between those members of the corporate family may not seem important in terms of day-to-day operations — in fact, the synergy and seamlessness between the corporate entities may be a selling point.

Two recent Government Accountability Office (GAO) decisions make clear, however, that when it comes to bidding on government work, it is important to precisely identify which corporate entity is going to do what and which corporate entity has which resources.

In BDO USA, LLP and Intermarkets Global USA, LLC, GAO’s decisions turned on a perceived misidentification of corporate entities at some point in the procurement process.  In BDO, the problem occurred during bid submission.  In Intermarkets, the problem occurred when the protest was filed.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2018/11/still-just-rat-cage-recent-gao-decisions-underscore-need-precision-identifying-corporate-entities-procurement-process/

Who’s the ombudsman? Proposed FAR rule requires clarity

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When GAO lacks jurisdiction to hear a protest over a task or delivery order, contractors have the right to complain to an ombudsman. Implementation of the ombudsman right, however, has been haphazard at best.

Last week, the DoD, GSA, and NASA–the entities comprising the FAR Council–proposed a rule to help alleviate this issue for IDIQ contracts.

Generally, 10 U.S.C. § 2304c and 41 U.S.C. § 4106 require each head of an agency that awards MATOC or delivery order contracts to appoint “a senior agency official who is independent of the contracting officer” as the “task and delivery order ombudsman.” The position requires the appointee to review complaints from contractors in order to ensure “that all of the contractors are afforded a fair opportunity to be considered” in certain circumstances where the underlying contract falls outside of GAO’s jurisdiction.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/whos-the-ombudsman-proposed-far-rule-requires-clarity/

Women are the solution to the construction industry’s labor shortage

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Megan Ross is an assistant superintendent for a large Maryland-based general contractor.  Ross, a former architecture major, had realized she’d rather build structures than design them, and is now on construction sites every day, coordinating subcontractors and monitoring the progress of jobs.

At her first position out of college, she earned a salary of over $50,000; two years later she says, “I have friends in architecture who are making half of that.”  The work is a joy, she says. “It’s one of the best careers you can have.”

Ross is part of an overlooked group that, with some assistance, could easily solve the construction industry’s labor shortage: women. Currently, women make up less than 3 percent of the construction workforce, which includes the building trades—hands-on jobs like carpentry, bricklaying, and electrical work—as well as management. If twice as many women worked in the field, the industry’s labor shortage would, according to data available from the U.S. Department of Labor, practically be wiped out.

And finding a solution to the ongoing worker shortage is crucial.

Keep reading this article at: https://www.curbed.com/2018/11/5/18065266/construction-industry-labor-shortage-women

Specialty contractors market ‘hot’

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Subcontractors on Engineering News-Record’s 2018 Top 600 Specialty Contractors list generated a total $124 billion of revenue in 2017, up 10% from 2016 and marking the seventh year in a row that earnings for this group increased.  ENR said the “hot” market subcontractors are enjoying right now should last at least another 12 to 18 months.

Mechanical, electrical and utility contractors dominated the first 10 spots on ENR’s list. Some firms are growing through acquisitions, but as the list of investors grows, so does the dollar amounts of the deals.

Although many specialty contractors are enjoying not having to beat the bushes in search of work, they still face challenges. One is the risk of taking on too much work, leaving those that overextend themselves vulnerable to cash flow, management and staffing shortfalls.  General contractors also have become competitors in some markets, choosing to control work quality and production schedules by self-performing jobs they previously subcontracted.  Meanwhile, the demand for specialty contractors has brought firms into the industry that have little or no expertise in the work they are bidding for.

Keep reading this article at: https://www.constructiondive.com/news/specialty-contractors-market-hot-says-enr/540698/

DOL announces new compliance assistance tools to assist new and small businesses

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The U.S. Department of Labor has announced the launch of the New and Small Business Assistance and the Compliance Assistance Toolkits web pages.

These new online tools assist American small businesses and workers with simple, straightforward resources that provide critical Wage and Hour Division (WHD) information, as well as links to other resources.

The web pages were established in response to feedback received from new and small business stakeholders voicing their need for a centralized location to secure the tools and information they need to comply with federal labor laws. The web pages also provide relevant publications and answer the questions most frequently asked by new and small business owners. These tools, in conjunction with worker.gov and employer.gov, ensure greater understanding of federal requirements and provide tools to help employers find resources offered by other regulatory agencies.

In addition to these new resources, WHD recently made available compliance assistance videos that provide brief, plain-language explanations of the Fair Labor Standards Act’s (FLSA) requirements and protections. The videos provide essential information employers need to understand their obligations under the law.

In August 2018, the Office of Compliance Initiatives (OCI) launched a revamped worker.gov to provide information about workers’ rights and an all-new employer.gov to provide information about the responsibilities of job creators toward their workers.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE(487-9243).

Information is also available at https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

Source: https://www.dol.gov/newsroom/releases/whd/whd20181017

How to leverage the government’s focus on transformation

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Vendors with truly transformational technologies may soon find more receptive ears in the public sector, as senior IT executives wrestle with topics from acquisition reform to creating an environment that will attract the workforce of tomorrow into today’s government.

In late August, a number of public and private sector officials met in DC for a series of brief conversations on government IT and procurement, focusing on transformation. These conversations considered how to use innovation for everything from protecting critical assets to reforming acquisition methods.

Three key conversations dealt with how to consolidate procurement schedules, collaboration for technology modernization, and making government more attractive to younger prospective employees.

Keep reading this article at: https://washingtontechnology.com/articles/2018/09/14/insights-shaker-government-transformation.aspx

Slight decrease in FY17 suspensions and debarments, but contractors should take note of the continued high level of activity

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On July 31, 2018, the Interagency Suspension and Debarment Committee delivered its annual report to Congress on the status of the suspension and debarment system. The report shows a continued high level of activity relative to the last decade and serves as a reminder that exclusion from the federal marketplace continues to be a risk for contractors that do not “cut square corners” with the government.

The FY2017 report shows a modest decrease in the number of suspensions, proposed debarments, and debarments from the last fiscal year, a trend that has continued since the high-water mark set in FY2014.

But it also notes that the number of exclusions in FY17, over 3,000, are almost double those reported when the Committee first began formally tracking the data in FY09, approximately 1,800.

The decline in the total number of suspensions, debarments, and proposed debarments should not be viewed as an indication that suspension and debarment officials (SDOs) across the government are not vigilant or that they are not taking appropriate action when unethical individuals or contractors pose a threat to the public interest. Rather, it is likely that growing proactive engagement by contractors with SDOs even in the absence of lapses has decreased the need to suspend or debar contractors when problems do occur by ensuring that SDOs understand those companies’ commitment to ethics and compliance and that appropriate remedial actions are taken promptly where there is cause to question whether a company should be permitted to continue contracting with the government.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=742270

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