GOVERNMENT CONTRACTS
DoD, GSA, and NASA Issue Proposed Rule to Amend FAR, Information on Corporate Contractor Performance and Integrity
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a proposed rule to amend the Federal Acquisition Regulation (FAR) to implement a section of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 to include in the Federal Awardee Performance and Integrity Information System (FAPIIS), to the extent practicable, identification of any immediate owner or subsidiary, and all predecessors of an offeror that held a Federal contract or grant within the last three years, 79 Fed. Reg. 71975. The objective is to provide a more comprehensive understanding of the performance and integrity of the corporation before awarding a Federal contract. Comments on the proposed rule are due February 2, 2015 to be considered in the formation of the final rule.
NDIA Pathway to Transformation, Acquisition Reform Recommendations
The National Defense Industrial Association (NDIA) published a 74-page report, on December 2, 2014, with its recommendations for an ongoing Congressional acquisition reform effort. The report, based on eight months of research into the acquisition process, including a thorough review of previous acquisition reform studies, makes recommendations in three main areas: authority and accountability, matching requirements to resources, and evidence based decision making. The NDIA made sure that every recommendation in the report used one of Congress's three tools: legislation, funding, or oversight. The specific recommendations the NDIA has made in each of the three main areas are as follows: under authority and accountability, NDIA recommends a pilot program for streamlined DoD acquisitions and greater involvement from the service chiefs; under matching requirements to resources, NDIA recommends introducing statutory sunset and review provisions into new regulatory requirements and reducing inefficient audit practices; and under evidence-based decision making, NDIA recommends GAO studies on complex systemic acquisition problems and better use of automated acquisition data. NDIA Pathway to Transformation, Acquisition Reform Recommendations.
DoD, GSA, and NASA Issue Federal Acquisition Circular 2005-78
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a summary of the Federal Acquisition Regulation (FAR) rules agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) in this Federal Acquisition Circular (FAC) 2005-78, 79 Fed. Reg. 227.
DoD, GSA, and NASA Issue Final Rule to Amend FAR, Incorporating Section K In Contracts
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a final rule to amend the Federal Acquisition Regulation (FAR) to standardize the incorporation by reference of representations and certifications in contracts, 79 Fed. Reg. 70341. The final rule will become effective December 26, 2014.
DoD, GSA, and NASA Issue Final Rule to Amend FAR, Streamlining Claims Processing
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a final rule to amend the Federal Acquisition Regulation (FAR) to implement the Streamlining Claims Processing for Federal Contractor Employees Act which amends the United States Code (U.S.C.) to transfer certain functions from the Government Accountability Office to the Department of Labor relating to the processing of claims for the payment of workers who were not paid appropriate wages under certain provisions of the U.S.C., 79 Fed. Reg. 70342. The final rule will become effective December 26, 2014.
DoD, GSA, and NASA Issue Final Rule to Amend FAR, Higher-Level Contract Quality Requirements
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a final rule to amend the Federal Acquisition Regulation (FAR) to clarify when to use higher-level quality standards in solicitations and contracts. The rule also updates the examples of higher-level quality standards by removing obsolete standards and adding new industry standards that pertain to quality assurance for avoidance of counterfeit items, 79 Fed. Reg. 70344. The final rule will become effective December 26, 2014.
DoD, GSA, and NASA Issue Small Entity Compliance Guide
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued the small entity compliance guide, 79 Fed. Reg. 70349. This Small Entity Compliance Guide has been prepared in accordance with section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. It consists of a summary of the rules appearing in Federal Acquisition Circular (FAC) 2005-78, which amends the Federal Acquisition Regulation (FAR). Interested parties may obtain further information regarding these rules by referring to FAC 2005-78.
DoD, GSA, and NASA Issue Proposed Rule to Amend FAR, Inflation Adjustment of Acquisition Related Thresholds
The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a proposed rule to amend the Federal Acquisition Regulation (FAR) to further implement the inflation adjustment of acquisition-related dollar thresholds, 79 Fed. Reg. 70141. A statute requires an adjustment every five years of acquisition-related thresholds for inflation using the Consumer Price Index for all urban consumers, except for the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. DoD, GSA, and NASA are also proposing to use the same methodology to adjust non-statutory FAR acquisition-related thresholds in 2015. Comments on the proposed rule are due January 26, 2015 to be considered in the formation of the final rule.
Pentagon May Be Forced to Release Aircraft Manufacturer’s Contract Data
The Petaluma, a California based American Small Business League announced, on November 26, 2014, a northern California district judge agreed that the Pentagon should honor the league’s request under the Freedom of Information Act for data submitted to the Comprehensive Subcontracting Plan Test Program. A program that has authorized negotiation, administration and reporting of subcontracting plans on a plant, division or company-wide basis to determine whether comprehensive subcontracting plans will result in increased subcontracting opportunities for small business while reducing the administrative burden on contractors, since 1990. The league has long challenged the program as a nonproductive, secretive way of steering toward large corporations defense subcontracts for which small businesses are most eligible. The league expects the ruling to lead to the eventual release of data on all firms participating in the program that will prove the Pentagon has cheated American small businesses out of well over a trillion dollars in subcontracts. Pentagon May Be Forced to Release Aircraft Manufacturer's Contract Data.
CAPITOL HILL
Federal IT Overhaul Included in Defense Bill, Headed for Vote
The bipartisan Federal Information Technology Reform Act, which aims to upgrade the government’s process for purchasing and building IT systems has made it past intense House-Senate negotiations and will be included in the compromise version of the Fiscal 2015 National Defense Authorization Act unveiled by lawmakers late December 2, 2014. The House is expected to vote on the annual defense policy bill as early as Thursday, December 4, 2014. Among the bill's most significant measures is an enhancement of the role of agency-level chief information officers (CIO). Under the legislation, agency CIOs would be granted a “significant role” in programming, budgeting and decision-making related to IT management and would have a say-so in their agency’s annual IT budget requests. Additionally, the legislation would specifically bar agencies from signing any contracts for IT or IT services unless the agency CIO has signed off on the deal. The bill similarly bars agencies from reprogramming IT funds without CIO approval. The enhancement of the CIO role, generally would not apply to the Department of Defense (DoD). At the Pentagon, for example, the DoD CIO would not formally approve the department’s IT budget request but would instead make recommendations to the defense secretary. Federal IT Overhaul Included in Defense Bill, Headed For Vote.
SMALL BUSINESS
SBA Issues Correction to Interim Final Rule Small Business Size Standards, Adoption of 2012 NAISC for Size Standards
The U.S. Small Business Administration (SBA) issued a correction to an interim final rule that appeared in the Federal Register on August 20, 2012 (75 FR 49991), effective October 1, 2012, 79 Fed. Reg. 71296. The interim rule amended SBA's Small Business Size Regulations by incorporating the Office of Management and Budget's 2012 North American Industry Classification System update (NAICS 2012) into its table of small business size standards. The NAICS 2012 revised the definitions of some NAICS industries by deleting some and merging others with the new or other revised industries. This action corrects the small business size standard for NAICS 334419, Other Electronic Component Manufacturing, from 500 employees to 750 employees, effective immediately. The corrected interim rule became effective December 2, 2014.
