Georgia Tech Procurement Assistance Center

Find Davis-Bacon in federal construction contracts, not in a supermarket

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There is hickory bacon.  There is turkey bacon.  And then there is Davis Bacon.

The first two can be found in the meat department of your local supermarket.

The last one — Davis Bacon — is found in federally-funded construction contracts.  If you’re bidding on a federal contract or subcontract, you’d better educate yourself about this requirement.

The federal Davis-Bacon Act (DBA) applies minimum prevailing wage classifications for all federally-funded or assisted construction projects.  (Note that the Federal Acquisition Regulation – the FAR – now refers to the Davis Bacon Act as “Wage Rate Requirements – Construction.”)

The U.S. Department of Labor creates wage classifications by the type of project for a specific type of worker.   (Although not the case in Georgia, also be aware of the fact that some state governments have adopted “little DBAs” requiring prevailing wages on state-funded public works projects.)

The worker classifications are crafted with broad job scopes, in order to be over-inclusive.  These classifications have drawn the ire of many private construction firms, who complain about what they consider over-payment for non-specialized labor (i.e., paying a wire runner as a journeyman electrician).  So, while many favor the DBA’s heavy wages – it can be crippling to an unprepared private firm’s profit margin.

In order to prepare, a construction professional must read and absorb the federal wage classifications that apply on their project – before bidding.  Wage classifications are prepared by state and by project, and are included in all federally-funded construction work.

If you are bidding a contract in the State of Georgia, you’ll need to check out the Georgia classifications.  For example, if you were building a non-residential structure, such as a government building, in Bibb County, you can see the applicable wage rates here.

If your Bibb County bid needs to include ironworkers to install your structural steel, you would need to bid them per hour at $24.04, plus $9.86 in fringe benefits (insurance, fringe, or even cash).  There are no real boundaries here – if a worker is involved in structural steel work, that worker is to be paid as an ironworker. If a contractor does not plan for this broad application, you’ll be facing penalties that are spelled-out under the Wage & Hour Act or Contract Work Hours and Safety Standards Act.  The penalties are stiff, providing for up to two times the amount of the unpaid or underpaid wages, plus interest.

The lesson here?  Like with all things involving government contracting, do your homework before jumping in with both feet.  To obtain assistance, check with a representative of the Georgia Tech Procurement Assistance Center (GTPAC) nearest you.  With proper preparation, you’ll be able to bid correctly, win a contract or subcontract, and then be able to bring home the real bacon.

© 2010-2017 –  Georgia Tech Procurement Assistance Center – All Rights Reserved.

Contractors object to parts of OMB’s agency reporting reductions

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A group representing 400 services and information technology contractors has asked the Office of Management and Budget (OMB) to revamp several of the 59 changes announced on June 15 in its memo on easing the reporting burden on agencies.

The Arlington, Va.-based Professional Services Council, though supportive in general of the budget office’s bid to trim and update administrative requirements, sent a June 22 letter to OMB Director Mick Mulvaney seeking changes in the Trump administration’s handling of accelerated payments to small businesses, acquisition assessments and reporting of agency priority goals.

“If no one is asking for it, maybe it doesn’t have much value to it,” Mulvaney told reporters during the rollout of the June 15 memo to agency heads targeting a portion of what eventually could be 250 management directives that might be “duplicative, obsolete, redundant or low value.”

Keep reading this article at: http://www.govexec.com/contracting/2017/06/contractors-object-parts-ombs-agency-reporting-reductions/139023/

I think my company is a federal contractor and has regulatory obligations, but where can I look to search for that information?

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Doing business with the United States federal government can be very lucrative, but it comes with a price.

That price arrives in the form of reporting obligations, recordkeeping, outreach, and much more.

Failure to comply with all applicable regulatory requirements can also have steep consequences, so it is very important for federal contractors to ensure they are doing all that is required.

Companies are sometimes unaware that they are a covered contractor or subcontractor and, thus, find themselves unprepared for an Office of Federal Contract Compliance Programs (OFCCP) compliance review. In an effort to better prepare for these types of situations, this article is intended to provide some practical information and resources about federal contractor thresholds and where to look for federal contracts.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=598152

New DHS acquisition rules proposal could disrupt contracts, hurt small business

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President Donald Trump celebrated a new executive order designed to eliminate regulations on small businesses. But a series of new acquisition rules proposed weeks ago by the Department of Homeland Security (DHS) have Federal contracting experts worried about future governmentwide disruptions and a decrease in competition.

DHS’s Office of the Chief Procurement Officer on Jan. 18 issued three proposed rules that would require privacy training and security awareness training for contractors, and would add five new categories of Controlled Unclassified Information (CUI)—unclassified information that is still sensitive—that contractors will need to secure and manage.

DHS’s proposed regulations are troubling to some Federal contracting experts because they disrupt the governmentwide standards that took years to set up, and may impose costs on small businesses that make it impossible for them to compete for DHS contracts.

Alan Chvotkin, executive vice president and counsel for the Professional Services Council (PSC), said the new CUI categories “don’t square” with the governmentwide rule that took six years to create.

Keep reading this article at: https://www.meritalk.com/articles/new-dhs-acquisition-rules-proposal-could-disrupt-contracts-hurt-small-business/

DoD further clarifies its DFARS cybersecurity requirements

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On January 27, 2017, the Department of Defense (DoD) issued an updated Frequently Asked Questions (FAQ) regarding the application and requirements of DFARS 252.204.7012, Safeguarding Covered Defense Information and Cyber Incident Reporting.

Though questions remain regarding various nuances of the rule, the FAQ is a helpful document for those contractors still working on implementation of DFARS 252.204.7012.

Divided into three sections — (1) General Application, (2) Security Requirements, and (3) Cloud Computing — the FAC provides answers to 59 commonly asked questions and provides greater clarity on a number of important points, which are discussed in greater detail here: https://www.insidegovernmentcontracts.com/2017/02/dod-clarifies-dfars-cybersecurity-requirements/

Reducing the costs of procurement regulation – A step in the right direction

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The Code of Federal Regulations (CFR) is around 180,000 pages and is growing at about 2,000 pages a year.

In 2008, the Office of Management and Budget (OMB) and the Small Business Administration estimated the regulatory compliance costs to be approximately $1.752 trillion.

These figures were cited in 2015 testimony before the Senate Armed Services Committee by the Honorable Jacque S. Gansler, Ph.D., currently professor emeritus at the University of Maryland’s School of Public Policy. He cited these figures in making the case for reducing regulations, policies, and procedures to reduce barriers to entry to the federal market and to increase the Defense  Department’s access to commercial innovation, which is needed desperately to ensure technological superiority on the battlefield.

That is why the Jan. 30, 2017 executive order Reducing Regulation and Controlling Regulatory Costs, is a step in the right direction in reducing regulatory burdens.  The EO provides, in part, that for fiscal year 2017, the heads of agencies are directed that the total incremental cost of all new regulations to be finalized this year, including repealed regulations, shall be no greater than zero.  The EO further provides that any new incremental costs associated with the new regulations shall be offset by the elimination of existing costs of at least two prior regulations.

Keep reading this article at: http://federalnewsradio.com/commentary/2017/02/reducing-the-costs-of-procurement-regulation-a-step-in-the-right-direction/

Contractors applaud House vote to kill fair pay, safe workplace rule

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Two major contracting groups hailed House passage on Thursday (Feb. 2, 2017) of a long-expected resolution to undo the Obama administration’s 2014 “Fair Pay and Safe Workplaces” order requiring contractors to report past violations of 14 labor laws.

House joint resolution 37, sponsored by Rep. Virginia Foxx, R-N.C., declares that the implementation rule submitted in August by the Defense Department, General Services Administration, and NASA relating to the Federal Acquisition Regulation (FAR) has no effect.

It passed 236-187 amid a series of votes using the 1996 Congressional Review Act to nullify regulations enacted in the past 60 days. (Other rules involved streams protection, land management royalties and Social Security rules on gun purchase background checks for people with mental disabilities.)

“We welcome the House action,” said David Berteau, president and CEO of the 400-member Professional Services Council, in a statement. “The blacklisting rule fails to provide companies with basic due process, imposes significant new and non-value added reporting requirements, and risks denying federal buyers access to the best private-sector providers to meet government needs. With the disapproval of this rule by the House, and we hope with prompt action by the Senate and then signature by the president, a significant overhang will be removed from the acquisition process.”

Keep reading this article at: http://www.govexec.com/contracting/2017/02/contractors-applaud-house-vote-kill-obama-fair-pay-safe-workplace-rule/135140

Here’s a summary of the changes in government contracting provisions of the NDAA

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Steve Koprince is the author of the book entitled "The Small-Business Guide to Government Contracts."
Steve Koprince is the author of the book entitled “The Small-Business Guide to Government Contracts.”

The 2017 National Defense Authorization Act (NDAA), signed into law on Dec. 23, 2016, contains at least 16 changes to federal procurement policy, many directly affecting the interests of small businesses.

Ever since the NDAA was finalized, attorney Steve Koprince and his team at Koprince Law LLC have been analyzing and summarizing each of the changes.  Here’s s list of their blog posts, each one hyperlinked to the article:

 

For more information, visit: http://smallgovcon.com 

 

SBA corrects profit-splitting flaw in new joint venture regulations

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The SBA has corrected a flaw in the profit-splitting provisions of its new joint venture regulations.

SBA logo smallUnder the corrected regulations, which became effective on December 27, all of the SBA’s joint venture regulations – those for small businesses, SDVOSBs, HUBZones, 8(a)s, and WOSBs – will require that each joint venturer receive profits commensurate with the work it performs.  The SBA’s revisions clear up an inconsistency between the 8(a) joint venture regulations and the regulations for the SBA’s other set-aside programs, and eliminates a potential disincentive for joint venturers to avail themselves of the protections of a formal legal entity such as a limited liability company.

Effective August 2016, the SBA overhauled its joint venture regulations.  Among the major changes, the SBA eliminated so-called “populated” joint ventures and made numerous additions and revisions to the regulations governing mentor-protege joint ventures, SDVOSB joint ventures, and joint ventures for other set-aside contracts.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/sba-corrects-profit-splitting-flaw-in-new-joint-venture-regulations/

Tech startups struggle to tap $82 billion in federal contracts

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tangherlini-would-be-a-way-better-gsa-administrator-12-2016Jason Wagner’s cyber startup sells a digital platform federal agencies need. But lacking the heft or connections of a major defense contractor, it would be more trouble than it’s worth for him to seek a coveted federal contract. And he’s not alone.

During 15 years as a contract employee for intelligence agencies, Wagner saw cybersecurity analysts waste time transferring data for their investigations across multiple computer applications. So last year he started Tensor Wrench, which makes such information-sharing easier.

Now with a team of six, his customers include General Dynamics Corp.’s Mission Systems division, which helps run communications systems used on satellites, and by law enforcement. But he still hasn’t put the biggest potential buyer — the federal government, which spent $82 billion this year on information technology, about eight times Apple Inc.’s research and development budget — on his list of prospective clients.

“The government is a big juicy target,” Wagner, 38, said in an interview. “It’s tempting, but you got to figure out how much time you want to invest and whether you can afford that. When we added everything up, the answer came back: not now.”

Many cyber startups make similar calculations in weighing whether to do business with the government, where they face a complex and slow procurement process that can strangle smaller companies. Amid rising cyber threats, the gap in getting the latest technology tools is particularly worrisome for federal civilian agencies, from the Department of Veterans Affairs to the Department of Agriculture.

Keep reading this article at: https://www.bloomberg.com/news/articles/2016-12-08/tech-startups-struggle-to-tap-82-billion-in-federal-contracts

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