GOVERNMENT CONTRACTS
Audit Report 14-18: Evaluation of Select 8(a) Business Development and HUBZone Contract Awards
The Office of Inspector General (OIG) issued Evaluation Report 14-18, Evaluation of Select 8(a) Business Development and HUBZone Contract Awards, on September 24, 2014. The evaluation identified over $400 million in contract actions that were awarded to ineligible firms, which may have contributed to the overstatement of small business goaling dollars for the Small Disadvantaged Business and the HUBZone Business preference programs in FY 2013. Additionally, the OIG found that HUBZone and 8(a) certification information is not consistently transmitted to the Dynamic Small Business Search (DSBS) and the System for Award Management (SAM). As a result, the affected small businesses are not getting visibility in DSBS, especially the HUBZone firms, and this may impact federal agencies in meeting their HUBZone procurement goals. Further, the OIG also identified over $1.5 billion dollars in contract actions for which the firms were in the programs at the time of contract award, but in FY 2013 were no longer in the 8(a) or HUBZone programs. SBA regulations permit procuring agencies to claim Small Disadvantaged Business and HUBZone goaling credit on certain contract actions after firms have left the program. The OIG believes the amount of dollars the SBA reports to Congress and the public as being performed by 8(a) and HUBZone firms in the Small Business Goaling Report is significantly impacted by the inclusion of contract actions performed by former program participants. Audit Report 14-18: Evaluation of Select 8(a) Business Development and HUBZone Contract Awards.
DOL, Veterans’ Employment and Training Service Issues Final Rule to Revise Reporting Requirements Under Vietnam Era Veterans’ Readjustment Assistance Act
The Department of Labor (DOL), Veterans’ Employment and Training Service (VETS) issued a final rule to revise the regulations implementing the reporting requirements under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended (VEVRAA), 79 Fed. Reg. 57463. Generally, VEVRAA requires Federal contractors and subcontractors to annually report on the total number of their employees who belong to the categories of veterans protected under VEVRAA, and the total number of those protected veterans who were hired during the period covered by the report. This final rule rescinds the regulations that prescribe the reporting requirements applicable to Government contracts and subcontracts entered into before December 1, 2003, because those regulations are now obsolete. In addition, this final rule revises the regulations that prescribe the reporting requirements applicable to Government contracts and subcontracts of $100,000 or more entered into or modified after December 1, 2003, by changing the manner in which Federal contractors report on their employment of veterans. The final rule renames the annual report required under those regulations to the Federal Contractor Veterans’ Employment Report VETS-4212. Further, the final rule revises regulations that address the definitions of terms used in the regulations, the text of the reporting requirements clause included in Government contracts and subcontracts, and the methods of filing the annual report on veterans’ employment. Contractors and subcontractors will have to comply with the reporting requirements beginning with the annual report filed in 2015. The final rule will be effective October 27, 2014.
NASA Issues Proposed Rule to Update NASA FAR Review No. 2
National Aeronautics and Space Administration (NASA) issued a proposed rule to update the NASA FAR Supplement (NFS) with the goal of eliminating unnecessary regulation, streamlining overly-burdensome regulation, clarifying language, and simplifying processes where possible, 79 Fed. Reg. 57015. This proposed rule is the second in a series and includes updates and revisions to 14 parts of the NFS. On January 18, 2011, President Obama signed Executive Order (E.O.) 13563, Improving Regulations and Regulatory Review, directing agencies to develop a plan for a retrospective analysis of existing regulations. The revisions to this proposed rule are part of NASA's retrospective plan under E.O. 13563. Comments on the proposed rule are due November 24, 2014.
DoD Issues Proposed Rule to Amend DFARS Multiyear Contracts: Statutory References and Cancellations Ceiling Threshold (DFARS Case 2014-D019)
The Department of Defense (DoD) issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement to update the cancellation ceiling threshold for multiyear contracts and to correct statutory references, 79 Fed. Reg. 56331. Comments on the proposed rule are due November 18, 2014.
DoD Issues Proposed Rule to Amend DFARS Domestic Source Restrictions on Certain Naval Vessel Components (DFARS Case 2014-D022)
The Department of Defense (DoD) issued a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the statutory domestic source restrictions on acquisition of certain naval vessel components, 79 Fed. Reg. 56333. Comments on the proposed rule are due November 18, 2014.
