GOVERNMENT CONTRACTS
Sustainable Procurement: A Closer Look at the New Federal Acquisition Regulation (FAR), PilieroMazza Webinar Replay, Katherine B. Burrows, Eric Valle. Click here to access the webinar replay.
Department of Defense (DOD) Final Rule: Defense Federal Acquisition Regulation Supplement (DFARS), Architect and Engineering Service Fees
On June 27, DOD published a final rule updating the DFARS increasing the fee limit for architect and engineering services from 6% to 10% of a project’s estimated construction costs. The final rule is available here and will be effective August 26, 2024.
General Services Administration (GSA) Final Rules: GSA Acquisition Regulation (GSAR)
On July 3, GSA published two final rules amending the GSAR. Both rules will be effective August 2, 2024.
- Removing the GSA Payments Clause for Non-Commercial Contracts. This rule removes GSAR Clause 552.232-1, Payments, which requires that a contractor is paid for non-commercial fixed-price contracts for supplies and services without having to submit an invoice or voucher. The Final Rule is available here.
- Standardizing the Identification of Deviations. This rule amends the GSAR to standardize language relating to an approved FAR deviation to improve consistency and readability. The Final Rule is available here.
Government Accountability Office (GAO) Press Release: Strengthening Accountability in the Federal Government: GAO Issues Draft Updates to “Green Book”
On June 27, GAO issued proposed revisions to Standards for Internal Control in the Federal Government, or the “Green Book.” The Green Book provides the overall framework for establishing and maintaining an effective internal control system that helps management adapt to shifting environments, evolving demands, changing risks, and new priorities. GAO invites public comments on this exposure draft. Read more here. The Green Book is available here.
Upcoming Government Contract Presentations
WEBINAR: Do’s and Don’ts of Subcontracting on Federal Projects, July 11, 2024 / 1:00 PM ET, Isaias “Cy” Alba, IV, Nichole D. Atallah
CONFERENCE: Using JV’s to Win Work with GSA and Beyond, July 23, 2024 / 2:00 PM ET, Jon Williams
LABOR & EMPLOYMENT
Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban, PilieroMazza Blog, Nichole D. Atallah, Sarah L. Nash
On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission (FTC)’s impending ban on non-compete agreements between employers and employees (the Rule) pending the outcome of ongoing litigation. Ryan, LLC v. FTC, Case No. 3:24-CV—00986, Slip Op. at 19, 23 (N.D. Tex., July 3, 2024). While the injunction currently only applies to the parties in the case, the court has committed to publishing its final ruling on or before August 30, 2024, in advance of the Rule’s implementation date. The decision is a window into how the court is likely to rule on the merits of the case, which would impact all employers and employees subject to non-compete agreements. Read more here.
Upcoming Labor & Employment Presentations
WEBINAR: FAR Session 14, Parts 22 & 23, July 10, 2024 / 12:00 PM ET, Sarah L. Nash, Nichole D. Atallah
CONFERENCE: New Employment Issues in Government Contracting, July 23, 2024 / 10:00 AM ET, Sarah L. Nash, Nichole D. Atallah
CYBERSECURITY & DATA PRIVACY
US Supreme Court Ruling Will Likely Cause Cyber Regulation Chaos, CSO
The US Supreme Court has issued a decision that could upend all federal cybersecurity regulations, moving ultimate regulatory approval to the courts and away from regulatory agencies. A host of likely lawsuits could gut the Biden administration’s spate of cyber incident reporting requirements and other recent cyber regulatory actions.
The ruling could weaken almost all US federal cybersecurity regulations, including SEC incident reporting, FCC data breach reporting, and CISA cyber incident reporting rules. Read more here.
Energy Releases Generative AI Guidance for Employees, Contractors, FedScoop
The Department of Energy’s (DOE) reference guide is the first publicly released generative AI guidance from the agency. Employees and contractors at the DOE now have a new reference guide to help them navigate the use of generative AI tools at the agency, including best practices and a note that ChatGPT is available for use by request. Read more here.
Attacks Against Defense Industrial Base Increasing, NSA Chief Warns, DefenseOne
The Pentagon is pushing ahead with zero-trust plans to automate defenses against future threats. China, Russia, and others are aiming more frequently at companies that serve the U.S. military, Gen. Timothy Haugh, the head of U.S. Cyber Command and the National Security Agency, told the crowd at TechNet Cyber. Read more here.
CONSTRUCTION
Equal Employment Opportunity Commission (EEOC) Guidance: Promising Practices for Preventing Harassment in the Construction Industry
On June 18, EEOC published guidance regarding the prevalence of harassment in the construction industry. The EEOC notes that “some of the most egregious incidents of harassment investigated by the EEOC have arisen in the construction industry. The nature of the construction industry includes a number of risk factors that may increase the likelihood of harassment, including workforces that are primarily male, workplaces where there is pressure to conform to traditional stereotypes and decentralized workplaces.” The EEOC recommends that contractors refer their subcontractors needing assistance combatting workplace harassment and discrimination to the EEOC’s resources and include in bids a policy to prevent workplace harassment. The EEOC encourages contractors to have a comprehensive anti-harassment policy. The full guidance is available here. For assistance creating and implementing a comprehensive anti-harassment policy, please contact PilieroMazza’s Labor & Employment attorneys Sarah L. Nash or Nichole D. Atallah.
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
Common Scenarios Triggering False Claims Act Violations, Part 1: Government Contracts and Cybersecurity, PilieroMazza Webinar Replay, Matthew E. Feinberg, Isaias “Cy” Alba, IV, Jacqueline K. Unger. Click here to access the webinar replay.
Common Scenarios Triggering False Claims Act Violations, Part 2: Construction and Workforce Issues, PilieroMazza Webinar Replay, Matthew E. Feinberg, Jessica A. duHoffmann, Sarah L. Nash. Click here to access the webinar replay.
Common Scenarios Triggering False Claims Act Violations, Part 3: Claims and Investigations, PilieroMazza Webinar Replay, Matthew E. Feinberg, Mark F. Rosenow. Click here to access the webinar replay.
FUND FORMATION & STRUCTURING
Department of Treasury (Treasury) Final Rule: Statutory Disallowance of Deductions for Certain Qualified Conservation Contributions Made by Partnerships and S Corporations
On June 28, the Treasury’s Internal Revenue Service (IRS) published a final rule disallowing a Federal income tax deduction for a qualified conservation contribution made by a partnership or an S corporation after December 29, 2022, if the amount of the contribution exceeds 2.5 times the sum of each partner’s or S corporation shareholder’s relevant basis. These final regulations affect partnerships and S corporations that claim qualified conservation contributions, and partners and S corporation shareholders that receive a distributive share or pro rata share, as applicable, of a noncash charitable contribution. The rule is available here and is effective as of June 28, 2024.
