Government Contracting Resources » Contract Pricing

Defense Federal Acquisition Regulation Supplement: Proposal Adequacy Checklist (DFARS Case 2011-D042

tdiguiseppe — Mon, 05 Dec 2011 14:24:52 +0000

While most would think that the 47 items on the proposed adequacy check list were already being done, the DoD’s Better Buying Power initiatives group did not think so therefore it is proposing to formally include the check list in the DFARS as a requirement for any proposal requiring Certified Cost or Pricing data to protect the Government against a perceived deficiency in the proposal evaluation process.

The only thing this will accomplish is to greatly extend the timeline and cost from RFP to contract award without any real measurable benefit to the Government.

DoD reasoning is quoted below.

“This proposed rule supports one of DoD’s Better Buying Power initiatives by incorporating the requirement for a proposal adequacy checklist into the Defense Federal Acquisition Regulation Supplement (DFARS) at section 215.408, and an associated solicitation provision at DFARS 252.215–70XX, to ensure offerors take responsibility for submitting thorough, accurate, and complete proposals. The provision should be included in solicitations that require the submission of certified cost or pricing data.”

Clink this link for a copy of the Federal Register

New DCAA Focus Areas – Questioned Costs

tdiguiseppe — Thu, 03 Nov 2011 19:10:46 +0000

More examples of how DCAA is interpreting the FAR for the purpose of finding more areas in which cost can be disallowed. Companies must prepare themselves for a more aggressive DCAA.

Click here for a copy of the article

Non-Discrimination in Compensation – Compensation data collection Tool

tdiguiseppe — Wed, 10 Aug 2011 14:26:29 +0000

The Obama’s administration early announcement that they will be proposing a new data collection rule related to “Compensation Discrimination”. This is another attempt on the part of DOL and the Obama’s administration to force contractors to report data on employee and management compensation under the guise of identifying and preventing compensation discrimination. In reality it is a back door effort to force government contractor to either become unionized or to pay wage scales dictated by the union. If also smacks of the heavy handed approach
to government dictating how business are to pay their employees. This is no different than DOL efforts to tell Boeing where it can set up business operations and that any effort to operate in Right to Work states will be met with lawsuits from DOL.

You have an opportunity to comment, please use it. However, the only real way to prevent this proposed rule from becoming finalized it to contact your Congressional Representative loudly and
often. Because this is another attempt to kill capitalization by the Obama administration.

Click here for a copy of the Fed Reg announcing this proposed rule

CAS exemption for contracts performed outside the US no longer applies

tdiguiseppe — Wed, 10 Aug 2011 14:17:30 +0000

You will remember that a few months back I sent out a news alert about a proposed rule to remove the exemption from CAS for contracts performed outside the US. The proposal rule is not finalized.
Performing a contract entirely outside the US no longer exempts the contract for CAS coverage if under normal circumstance the contract would be CAS qualified.

Click here for the Feg Reg publication of the final rule

Understanding the Truth in Negotiation Act (TINA)

tdiguiseppe — Thu, 02 Jun 2011 19:34:35 +0000

A white paper on the Truth in Negotiation Act and what it means to you as a Government Contractor

Click here for access to the paper on TINA

Contracting with the U.S. Government

tdiguiseppe — Wed, 18 May 2011 17:25:16 +0000

A great paper by Rod Marvin, Esq., of Cohen and Mohr, on all aspects of doing business with the Federal government and how best to be successful in this market. While it is a long paper, it is a great resource to keep in your files for a reference tool on the many requirements of doing business with the government.

Click here for a copy of the White Paper

Get ready for pricing wars

tdiguiseppe — Thu, 28 Apr 2011 16:11:52 +0000

A good article by Stan Soloway on measures being taking by DoD to increase its ability to dictate price reasonableness, and drive up the cost of doing business with the Government.

Tim

Click here for a copy of the article

Federal Acquisition Circular 2005-50 – Ten Interim and Final FAR rules that impact most contractors

tdiguiseppe — Wed, 16 Mar 2011 17:11:34 +0000

Attached is a copy of the Federal Acquisition Circular 2005-50 publishing interim and final rules effecting everyone.

The first rule of concern is “Proper Use and Management of Cost-Reimbursement Contracts (Interim)” significantly increases the threshold for COs to justify the use of Cost-Reimbursement contracts over fixed priced contracts. Expect to see contracts that would in the past be issued and Cost-Reimbursement to be issued as fixed price. This will significantly increase the risk on contractors.

The second rule of concern is “Requirements for Acquisition Pursuant to Multiple-Award Contracts (interim)” – Raises the bar on competitive requirements for the issuance of such contracts.

The third is “Disclosure and Consistency of Cost Accounting Practices for Contracts Awarded to Foreign Concerns” This final rule brings the FAR into compliance with the CAS on disclosure requirements for foreign concerns that did not exist before. Foreign concerns with CAS covered contracts must now be compliant with CAS 401 and this requirement is no included in FAR 52.230-4

I have highlighted sections of the FAC that may be of interest to you

Tim

Click here for a copy of the FAC 2005-50

Another example of the Idiocy call guidance to DCAA auditors

tdiguiseppe — Wed, 02 Mar 2011 15:08:35 +0000

Below is one of the best examples of government double speak and CYA that I have seen in a long time. This statement allows DCAA to site the contractor for a system deficiency while also taking advantage of the cost saving when a contractor reduces it rates to be competitive.

DCAA Technical Advice

Recent advice for a DCAA Regional Technical Programs Specialist regarding a contractor’s decision not to invoice for the fully allowable indirect cost rates:

“The voluntary underbilling should be cited as a [system] “(b) … In establishing billing rates, the contracting officer (or cognizant Federal agency official) or auditor should ensure that the billing rates are as close as possible to the final indirect cost rates anticipated for the contractor’s fiscal period, as adjusted for any unallowable costs.” (Emphasis added) If a contractor does not anticipate invoicing the fully allowable amount, the contractor’s actions would not violate the wording of the provision. deficiency.”

DOE Contractor pay freeze

tdiguiseppe — Wed, 22 Dec 2010 14:43:24 +0000

Another step in the Obama’s administration continued effort to control the free market. By using executive agency to issue directives, the Obama administration can usurp authority given only to the Congress and mandate controls over private enterprise for the sole purpose of expanding Government control over the economy. I hope that the incoming Congress will put a stop to Obama’s trampling of the constitution.

Other agencies will soon follow DOE lead

Click the here for a link to the article