GOVERNMENT CONTRACTS
8(A) Subcontracting Limitations: Continued Noncompliance with Monitoring Requirements Signals Need for Regulatory Change
The Government Accountability Office (GAO) has conducted a study to review how federal agencies and small businesses monitor the amount of subcontracted work under 8(a) contracts and the potential effects of the changes to the Small Business Act. The Small Business Administration’s (SBA) 8(a) program is one of the federal government's primary means for developing small businesses owned by socially and economically disadvantaged individuals. Regulations limit the amount of work that can be performed by subcontractors to ensure that 8(a) firms do not pass along the benefits of their contracts to their subcontractors. In 2013, the Small Business Act was amended to make several changes related to these subcontracting limitations. The report examined: (1) the extent to which contracting officers and firms monitor compliance with 8(a) subcontracting limits, and (2) the implementation status of changes to the Small Business Act and potential effects. GAO reviewed a non-generalizable sample of 10 8(a) contracts at the three agencies with highest 8(a) obligations in fiscal years 2011 and 2012. GAO selected a small sample to delve more deeply into the circumstances of the contracts. The GAO’s findings were similar to prior findings from April 2006 and January 2012, finding that contracting officers are generally not collecting information on the amount of subcontracted work performed under the 8(a) contracts reviewed, as required. The amount of work prime contractors must perform differs according to what is being procured. For example, the subcontractor's personnel costs are not to exceed 50 percent of the total work under service contracts. Two of the contracting officers associated with the 10 contracts GAO reviewed had monitored and ensured that the subcontracting limitations were not exceeded. In these cases the contractors had been asked to provide necessary information. In the other cases, however, contracting officers did not monitor and were not fully aware of what they were required to do, in part because their responsibilities are not set forth in the Federal Acquisition Regulation (FAR), the primary source for federal procurement policies, to which they regularly turn for guidance. 8(A) Subcontracting Limitations: Continued Noncompliance with Monitoring Requirements Signals Need for Regulatory Change.
DoD Issues Interim Final Rule to Establish Guidance for Issuing the Common Access Card (CAC)
The Department of Defense (DoD) issued an interim final rule that establishes policy, assigns responsibilities, and prescribes procedures for investigating and adjudicating eligibility to hold the DoD Common Access Card (CAC), 79 Fed. Reg. 55622. This interim final rule elaborates on OPM guidance for component adjudicators who determine, based on review of investigative case files, whether to grant CAC eligibility to individuals who require: Physical access to DoD facilities or non-DoD facilities on behalf of DoD; logical access to information systems (whether on site or remotely); or remote access to DoD networks that use only the CAC logon for user authentication. The interim final rule provides the adjudicator with conditions that may be disqualifier and circumstances relevant to the determination of whether there is a reasonable basis to believe there is an unacceptable risk. The interim final rule is effective September 17, 2014. Comments are due November 17, 2014.
OFPP Issues a Notice to Request Public Comment on a Report on Alternative Measures of Allowable Reimbursement for Compensation of Contractor Employees
The Office of Federal Procurement Policy (OFPP), in the Office of Management and Budget (OMB), and the Department of Defense (DOD) issued a notice to request public comment on the development of a report to Congress on alternative measures of allowable reimbursement for the compensation of contractor employees, 79 Fed. Reg. 55507. The report is required by section 702(e) of the Bipartisan Budget Act of 2013 (Pub. L. 113-67; enacted Dec 26, 2013). Comments are due October 16, 2014.
DOL Issues Proposed Rule Prohibiting Federal Contractors from Firing Employees Who Discuss Pay
The Department of Labor issued a proposed rule, 79 Fed. Reg. 55712, that would require federal contractors to inform their employees of their right to openly discuss pay in the workplace without fear of retaliation. Firms that do business with the federal government would have to incorporate the new non-discrimination language in their existing employee handbooks and distribute the information, either electronically or by publicly posting a copy of the requirement. They also would have to include the provision in the existing equal opportunity clause in their contracts. The proposed regulations implement an executive order signed by President Obama in April that protects employees of federal contractors who disclose their pay, or the compensation of other workers, from being fired or otherwise retaliated against by employers. The proposed rule would apply to all federal contractors that do more than $10,000 worth of business with the government. Proposed Rule Prohibits Federal Contractors From Firing Employees Who Discuss Pay.
DoD, GSA, and NASA Issue a Proposed Rule to Amend FAR Enhancements to Past Performance Evaluation Systems
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 accommodate the Architect-Engineer Contract Administration Support System (ACASS) and Construction Contractor Appraisal Support System (CCASS) modules within the Contractor Performance Assessment Reporting System (CPARS) database, 79 Fed. Reg. 54949. Comments on the proposed rule are due November 14, 2014.
DISA Kicks Off IT Contract to Support Cyber Command
The Defense Information Systems Agency (DISA) launched, on September 11, 2014, what it described as the first omnibus contract to provide a wide range of information technology services to the U.S. Cyber Command, including assistance for offensive and defensive cyber operations. The indefinite delivery, indefinite quantity IT contract is open only to small businesses, with some of the tasks currently performed by large contractors, such as a security program that shares information with the Defense Industrial Base and run by Northrop Grumman. The contract will streamline acquisition of cyber-related services and will provide support across multiple technical and nontechnical 55 disciplines under a centralized structure. Contractors will provide support for cyber planning, training knowledge, records management, science and technology research and development, and more than 30 cyber exercises a year. Interested vendors need to reply to DISA by Sept. 29. http://www.nextgov.com/defense/2014/09/disa-kicks-it-contract-support-cyber-command/93989/DISA Kicks Off IT Contract To Support Cyber Command.
Committee for Purchase From People Who Are Blind or Severely Disabled
The Following Notices Were Issued:
79 Fed. Reg. 54683, September 12, 2014, proposed to add products (Flashlight, Tactical, Lithium-Ion Rechargeable, Multi-color LEDs, Penlight, Tactical-Style, LED, 2 AAA, 5'' Long, Flashlight, Tactical-Style, LED, 2 AAA, 6'' Long) and services (Janitorial Service, National Oceanic & Atmospheric Administration, National Weather Service Office, 2500 Challenger Drive, Midland, TX) to the procurement list. Comments on the proposed additions are due October 13, 2014.
79 Fed. Reg. 54683, September 12, 2014, to add a product (Sideboard Pallet, 48'' x 48'') and services (Janitorial Service, U.S. Geological Survey, Illinois Water Science Center, 1201 W. University Avenue, Suite 100, Urbana, IL, Custodial Service, FAA, Merrill Field Air Traffic Control Tower, 1950 East Fifth Avenue, Anchorage, AK, Snow Removal Service, GSA, PBS, Region 5, Gerald R. Ford Federal Building, 110 Michigan Street, NW, Grand Rapids, MI) and delete products (Biogel, Orthopro Indicator, Underglove, Green, Size 6'', Biogel, Orthopro Indicator, Underglove, Green, Size 6.5'', Biogel, Orthopro Indicator, Underglove, Green, Size 7'', Biogel, Orthopro Indicator, Underglove, Green, Size 7.5'', Orthopro Indicator, Underglove, Green, Size 8'', Biogel, Orthopro Indicator, Underglove, Green, Size 8.5'', Biogel, Orthopro Indicator, Underglove, Green, Size 9'', Biogel, Orthopro, Overglove, Straw colored, Size 6'', Biogel, Orthopro, Overglove, Straw colored, Size 6.5'', Biogel, Orthopro, Overglove, Straw colored, Size 7'', Biogel, Orthopro, Overglove, Straw colored, Size 7.5'', Biogel, Orthopro, Overglove, Straw colored, Size 8'', Biogel, Orthopro, Overglove, Straw colored, Size 8.5'', Biogel, Orthopro, Overglove, Straw colored, Size 9'', Chipboard) and services (Janitorial/Custodial, U.S. Army Reserve Center, 1001 W. DeYoung Street,Marion, IL, Facilities/Grounds Maintenance, Addicks Field Office and Compound Storage Yard, Barker Visitors Areas, Dams, Reservoirs & Related, 2000 Fort Point Road, Houston, TX) from the procurement list. The additions and deletions will be effective October 13, 2014.
