More disclosure requirements imposed on Government Contractors
Friday, July 9th, 2010
Rule – Reporting Executive Compensation and First Tier subcontractors – More Government strong arming contractors
As part of the Accountability and Transparency Act of 2006 a free public website containing full disclosure of all Federal contract award information was established.
The latest impact of this Act is the requirement that prime contractors with contracts over $25,000 must disclose the compensation paid to their executives and the value of their First-Tier subcontractor awards. What is required to be reported by the Prime
- By the end of the month following the month of award of a contract, and annually thereafter, the contractor shall report the names and total compensation of each of the five most highly compensated executives for the contractor’s preceding completed fiscal year
- …..by the end of the month following the month of award of the first-tier subcontract and annually thereafter, the contractor shall report the names and total compensation of each of the five most highly compensated executives for the “first-tier subcontractor’s” preceding completed fiscal year
Under this rule, subcontractors must disclose their executives compensation to the prime.
This rule applies to commercial item contracts and COTS as well as solicitation and actions under the simplified acquisition threshold (>$100,000). The only contracts exempted are classified contracts.
The rule revises FAR subpart 4.14 and FAR 52.204-10, CO must include the revised clause in solicitations and contracts of $25,000 or more.
The administration believes “that urgent and compelling reasons exist to promulgate this interim rule without prior opportunity for public comment.”
Like everything else from this administration, this must be done immediately and without thought – The Obama administration again comes to the rescue
Click here for a link to the Federal Register announcing the rule
DoD finalizes changes to DFARS on export control
Wednesday, June 30th, 2010
DoD Contractors and Subcontractors: Are You Complying with the New Flowdown Notice Requirement on U.S. Export Control Laws?
Compliance with U.S. export control laws is critical during this time of heightened enforcement. A recent U.S. Department of Defense (“DoD”) Final Rule requires that a clause mandating strict compliance with U.S. export control laws and regulations be included in all DoD solicitations and contracts, including contracts between prime contractors and subcontractors. On April 8, 2010, the DoD amended the Defense Federal Acquisition Regulation Supplement (“DFARS”) to include this new requirement, which is provided at DFARS, 252.204-7008.1 This “flowdown” clause must be contained in all subcontracts arising from a DoD prime contract.
Click here for a copy of this article
DoD Interim rule to increase competition in its Major Defense Acquisition Program – Watch out!
Monday, March 22nd, 2010
The attached article from Venable LLP addresses DoD efforts to increase completion on MDAP contracts for both prime and subcontractors. While this would appear good on the surface, what is very troubling about this interim rule, which will become a final rule, is the language addressing the release of Technical Data on such contracts.
This rule will make it very difficult for contractors to hold on to proprietary technical data. It is the government’s way of obtaining all the technical data developed during a contractor’s Independent Research and Development efforts in coming up with new or improved MDAP products.
Obtaining this data will allow the government to release the technical data in subsequent RFPs to the developing contractor’s competitors; thereby putting that contractor at a financial disadvantage. Through this process the contractor’s competitors will obtain all the necessary technical data to produce the product without incurring any of the development expense.
The potential back lash to DoD is that contractors refuse to incur the cost of research to create new or improved MDAP products knowing that DoD will just release the technical data to its competitors on future RFPs.
For further information please contact Tim Di Guiseppe at TD Government Solutions, tim.diguiseppe@tdgovernmentsolutions.biz
Office 814-535-7046
Cell 814-242-2410
Fax 814-260-4222
Click link to obtain a PDF of this Article
