Key Concerns for Government Contractors
Thursday, August 12th, 2010
The environment in which government contractors have to work within has changed significantly over the last couple of years and the trend looks to continuing. The changes have created uncertainty in the industry and concerns as to potential increased risk to contractors. The attached PowerPoint documents address these changes and their impact to the industry. Subjects covered include:
- Life under the new DCAA attitude
- Allowability of Specific Costs
- Adequate and Timely Incurred Cost Proposals
- Business Ethics & Conduct and Mandatory Disclosure
- Proposed DFARS Rule: Withholding Payments to DoD contractors
- Prime Contractor Management of Subcontractors
- Organizational Conflict of Interest – DFARS update, Requirements and problems
- Reporting Subcontract Awards Greater than $25,000
- American Recovery and Reinvestment Act
FAR Subpart 4.15 – Reporting Requirements - DoD Finalizes Changes to DFARS on Export Control
- Labor Relations Cost – Cost to fight unionization unallowable
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
