Weekly Update Newsletter - October 2014

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GOVERNMENT CONTRACTS 

DoD Issues Final Rule to Amend DFARS Limitations on Use of Cost- Reimbursement Line Items (DFARS Case 2013-D016)

The Department of Defense (DoD) issued a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 811 of the National Defense Authorization Act for Fiscal Year 2013, which prohibits DoD from entering into cost-type contracts for production of major defense acquisition programs (MDAPs), 79 Fed. Reg. 58693. In implementing section 811 of the NDAA for FY 2013, DoD further defined the prohibition on entering into cost-type contracts to explicitly state the prohibition also applies to entering into cost-reimbursement line items for the production of MDAPs.  The final rule is effective September 30, 2014.  

DOT Issues Final Rule to Amend DBE Program Implementation Modifications

The U.S. Department of Transportation (DOT) issued a final rule to amend its disadvantaged business enterprise (DBE) program regulations to improve program implementation in three major areas, 79 Fed. Reg.191. First, the rule revises the uniform certification application and reporting forms, creates a uniform personal net worth form, and collects data required by the Moving Ahead for Progress in the 21st Century Act (MAP-21), on the percentage of DBEs in each State. Second, the rule strengthens the certification-related program provisions, which includes adding a new provision authorizing summary suspensions under specified circumstances. Third, the rule modifies several other program provisions concerning such subjects as: overall goal setting, good faith efforts, transit vehicle manufacturers, and counting for trucking companies.  The final rule will be effective November 3, 2014.  

National Park Service Issues Final Rule to Amend Concession Contracts

The National Park Service issued a final rule to amend concession contract regulations to clarify that the Director may amend or extend a prospectus soliciting proposal for a concession contract prior to and including the proposal due date and may award a temporary concession contract, 79 Fed. Reg. 58261. The final rule is effective September 29, 2014.   

SMALL BUSINESS 

SBA Issues Quarterly Interest Rate

The Small Business Administration (SBA) published the optional interest rate entitled, the “peg” rate (13 CFR 120.214), issued on a quarterly basis, 79 Fed. Reg. 58847. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 3.13% for the October-December quarter of FY 2015. 

Committee for Purchase From People Who Are Blind or Severely Disabled 

The Following Notices Were Issued:

79 Fed. Reg. 57890, September 26, 2014, add an additional service (Fleet Maintenance Service, U.S. Department of Energy, National Nuclear Security Administration, Agent Operations Eastern Command, Office of Secure Transportation, Transportation Safeguards Training Site, Fort Chaffee, AR, 11408 Roberts Blvd., Fort Smith, AR) to the Procurement List.  The addition will be effective October 27, 2014.   

79 Fed. Reg. 57891, September 26, 2014, proposing to add products (Refill, Instant Hand Sanitizer, Foam, Advanced Green Certified, 1200 ml, Refill, Instant Hand Sanitizer, Foam, Skin Nourishing, Advanced Green Certified, 1200 ml, Refill, Hand Soap, Foam, Anti-Bacterial, Plum Fragrance, Purple, Advanced Green Certified, 1250 ml, Refill, Hand Soap/Shower Wash, Foam, Ginger Fragrance, Green, Advanced Green Certified 1250 ml) to the Procurement List.  Comments on the proposed additions are due October 27, 2014.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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