Georgia Tech Procurement Assistance Center

Government contracts regulatory and legislative update

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Our monthly edition of the “Government Contracts Regulatory and Legislative Update” offers a summary and insight into the relevant industry developments that occurred during the previous month.

Regulations

DoD Issues Proposed Rule Establishing Preference for Fixed-Price Contracts

On April 1, 2019, the U.S. Department of Defense (DoD) issued a proposed rule to revise the Defense Federal Acquisition Regulation Supplement (DFARS) to establish a preference for fixed-price contracts when determining contract type, and to require use of firm fixed-price contracts for foreign military sales, subject to exceptions.  Approval is required for cost-reimbursement contracts in excess of $50 million if awarded between October 1, 2018 and October 1, 2019, and for cost-reimbursement contracts in excess of $25 million if awarded on or after October 1, 2019.  These revisions will implement Sections 829 and 830 of NDAA FY 2017.

The proposed rule includes the following key amendments:

  • Adds “milestone decision authority” definition to DFARS 202.101.
  • Revises DFARS 216.102(1) and adds DFARS 216.102(3) to reference the Section 829 NDAA requirements.
  • Adds DFARS 225.7301-1 and -2 to implement the Section 830 NDAA requirements.

DoD Issues Proposed Rule Revising the Nonmanufacturer Rule for 8(a) Participants

On April 1, 2019, DoD issued a proposed rule to amend the DFARS to implement the Small Business Administration’s (SBA) final rule standardizing the nonmanufacturer rule (NMR).  The NMR imposes certain requirements upon small business concerns that offer end items they did not manufacture, process, or produce.

This rule will update DFARS clause 252.219-7010 (Notification of Competition Limited to Eligible 8(a) Participants) to remove the nonmanufacturer rule exemption for contracts valued at or below $25,000 and awarded under simplified acquisition procedures.  Instead, the NMR will apply to all 8(a) contracts regardless of dollar value, and will require 8(a) participants that are nonmanufacturers to offer end items manufactured, processed, or produced by small business concerns in the United States or its outlying areas.

Continue reading at:  Drinker Biddle

An infrastructure deal should be easy, but isn’t

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The stars should be aligned for a big infrastructure deal.

The lingering devastation from the hurricanes that crippled Houston and Florida underscored the national problems of crumbling roads and bridges, inadequate transportation systems and aging electrical grids. President Donald Trump and congressional Democrats both want Washington to spend billions on repairs and construction.

The need is critical. The American Society of Civil Engineers recently gave the country’s infrastructure a D-plus grade and estimated that its deficiencies will cost the economy $4 trillion over the next decade. As Floridians go days, stretching into weeks, without power, and with old people dying in nursing homes, the urgency is clear.

Keep reading this article at: https://www.bloomberg.com/view/articles/2017-09-17/an-infrastructure-deal-should-be-easy-but-isn-t

New bill would scale back improper use of LPTA

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A new bill aims to reform the way agencies use “lowest-price, technically-acceptable” for their procurements.

The “Promoting Value Based Procurement Act of 2017” — sponsored by Rep. Mark Meadows, R-N.C., and Rep. Don Beyer, D-Va. — would reform the Federal Acquisition Regulation to require civilian agencies to do the following when it comes to applying LPTA in contract bids:

  • Comprehensively and clearly describe the minimum requirements in terms of performance objectives, measures and standards that will be used to determine acceptability of offers.

Keep reading this article at: http://www.federaltimes.com/articles/psc-applauds-new-bill-to-scale-back-improper-lpta-use

Why you can’t understand federal contracting without understanding legislation

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Stacy O'Mara - Bloomberg GovtWe’re part of a larger team that focuses on government affairs professionals — the companies, associations and lobbyists trying to influence government action and the Hill staff and federal agencies who make it happen. Our day-to-day activities center mostly around these clients and the type of work they do.

Our work also helps Bloomberg Government’s other client base — the community of government contractors trying to find and win business with the federal government. Those clients are focused primarily on business development, capture and proposal activities — securing their current work and pounding the pavement to land future work.

Keep reading this article at: http://about.bgov.com/blog/why-you-cant-understand-federal-contracting-without-understanding-legislation/

 

For federal IT vendors, a lot to like in House, Senate Defense bills

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From the perspective of federal technology companies, there’s a lot to like in this year’s House and Senate Defense authorization bills. Indeed, a leading industry group’s main complaint is that the acquisition reforms in the legislation only apply to DoD — not the rest of the government.

House Armed Services CommitteeWhile the leaders of both the House and Senate armed services committees say they’re taking an incremental approach to acquisition reform in their respective versions of this year’s Defense authorization bill, the Senate version, released last week, appears to try to achieve more change within a single year.

The measure tackles everything from the role of the military service chiefs in procurement decisions to the acquisition workforce and establishing new “alternative” pathways to buy goods and services and pressing the Defense Department to make more use of commercial technology.

In a briefing with reporters Wednesday, May 27, the IT Alliance for Public Sector (ITAPS), a lobbying group and association for federal IT contractors, said it had no substantive disagreements with any provisions in either of the Defense bills — an extremely rare occurrence for any advocacy group with interests in the huge, annual National Defense Authorization Act (NDAA).

Keep reading this article at: http://www.federalnewsradio.com/394/3865197/For-federal-IT-vendors-a-lot-to-like-in-House-Senate-Defense-bills

Bill introduced to boost small business federal contracts

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New legislation seeking to improve access to federal contracts for socially and economically disadvantaged small businesses was introduced in a Congressional bill on Monday, June 7, 2010.  If enacted, the legislation would make key improvements to the SBA’s Section 8(a) contracting programs.  U.S. Senators Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, and Benjamin L. Cardin, D-Md.,  introduced S. 3458, the Section 8(a) Improvements Act of 2010.  This legislation represents the third in a series of steps that the Committee is taking to address the disparities and inequalities that currently exist in the federal procurement process.

“The reality is that small businesses need all the help they can get when it comes to accessing Federal contracts,” said Senator Landrieu. “Despite the fact that the Federal Agencies have a statutory goal to spend 23 percent of their contract dollars on contracts to small firms, in recent years the government has fallen short. By increasing contracts to small businesses by just 1 percent, we can create more than 100,000 new jobs. Today, we need those jobs more than ever.”

“As a nation, we need to create jobs and the way to create jobs is to help small businesses,” said Senator Cardin. “Ensuring that small businesses have access to government contracts is one of the most effective ways to expand opportunities and create jobs. But many small firms have been locked out of competing for valuable federal contracts. Our legislation continues our efforts to level the playing field for small businesses so they can more fully participate in our economic recovery.”

According to the Federal Procurement Data System, the Federal Government missed its 23 percent goal by .992 percent in fiscal year 2007 and 1.51 percent in fiscal year 2008. That represents more than $3.74 billion and 93,500 for 2007 and more than $6.51 billion and 162,700 jobs in 2008 lost for small businesses.

The Section 8(a) Improvements Act of 2010 aims to help socially and economically disadvantaged firms in several ways. The Act will:

  • Adjust the average annual income and net worth thresholds currently in place, to account for increases in inflation;
  • Require the SBA to establish maximum net worth thresholds for socially and economically disadvantaged small businesses working specific industries, including the manufacturing, construction, professional services, and the general services industries;
  • Extend the amount of time under which a small business can participate in the 8(a) program by establishing a transition period to provide newly graduated small businesses with continued assistance as they transition their business operations;
  • Improve contracting opportunities for small businesses through the creation of a Surety Bond Pilot Program which will guarantee 90 percent of surety bonds through the SBA;
  • Provide additional educational training and technical assistance on a wide range of topics, helping small businesses participating in the 8(a) program to be in a stronger position to succeed upon graduation program.

The text of the bill can be viewed by clicking here.

SOURCE: U.S. Senate Committee on Small Business & Entrepreneurship

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