Source: http://www.wifcon.com/discussion/index.php?/blogs/&page=1&filter=blogs_with_content&sortby=blog_last_edate
Timestamp: 2019-04-26 14:24:19+00:00

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Almost exactly four years ago, Centre issued a blog post regarding the status of the Obama Administration’s effort to revise the standards for determining whether an employee may be “exempt” for purposes of entitlement to overtime under the Fair Labor Standards Act (FLSA). Ultimately, the Obama DOL issued regulations that would have more than doubled the FLSA’s minimum salary requirement from $23,660 to $47,476 per year – affecting the status of an estimated 4.2 million workers.
While it potentially would’ve impacted all employers, the particular import for government contractors is that FLSA exempt status also defines the contours of which workers are “service employees” for purposes of coverage under the Service Contract Labor Standards. That is, under the previously proposed regs, any employee working on a federal service contract and earning less than $46,476 would have been a “service employee” and entitled to be slotted within a wage determination and receive applicable vacation and fringe benefits.
Of course, those who remember our blog post of December 2016 will recall that ultimately the regulations were blocked by a federal court injunction. Early in the Trump Administration, the DOL indicated that it would not dispute the Court’s injunction but that the agency would revisit the issue of exempt status at a later time. And, it appears that later time is now as, on March 22, 2019, the DOL issued its Notice of Proposed Rule Making to revise the regulations concerning exempt status. The public comment period for the same will close on May 21, 2019.
While the changes proposed are not as considerable great as the prior administration’s, they are significant. For example, the proposed minimum salary threshold is $35,308 – nearly a 50% increase over the current standard. Similarly, the threshold for exemption for highly compensated individuals is proposed to increase from the current standard of $100,000 to $147,414. Perhaps most importantly, unlike the enjoined regulations, the new regs do not include an automatic “update” provision, that would have ratcheted the salary level up without the need of further agency action in the future. In addition, the new regs also do not propose any modification to the existing “duties test” to determine workers’ exempt status.
Say what one will about the current occupant of The White House, the Trump Administration is certainly an “interesting one.” Despite some early fireworks around the possibility of Andrew Puzder taking the reins at DOL, the agency’s direction under the leadership of Alexander Acosta has generally been middle of the road, and the recent FLSA proposal is consistent with that theme.
It’s anticipated that the current proposal will move far more quickly than its predecessor and, once finalized, will likely not face the same level of court challenge. Contractors should continue to monitor the progress of the regulations as it appears that change is on the way again. And this time, it is probably here to stay.
The DoD recently issued proposed revisions to the DFARS 8(a) nonmanufacturer rule, found in 48 C.F.R. § 252.219-7010. The proposed revisions would update the admittedly “outdated text regarding the nonmanufacturer rule with updated text” that reflects SBA’s May 2016 final rule implementing the Fiscal Year 2013 National Defense Authorization Act.
While the changes are only for 8(a) concerns, the differences between the existing DFARS and proposed change are significant nonetheless.
The proposed rule change is found in 84 FR 12187, which was published on April 1, 2019. The sole purpose of this proposed rule is to amend the DFARS to align with the SBA’s rule to provide “revised and standardized limitations on subcontracting, including the nonmanufacturer rule, that apply to” participants in the 8(a) Program. Comments are due on or before May 31, 2019.
The contract is a construction or service contract.
The proposed rule alters the language of the waiver exception and eliminates the “does not exceed $25,000” exception. In other words, even if an 8(a) concern is performing a contract under the simplified acquisition threshold, the proposed rule would still apply. The “construction or service contract” exception remains.
SBA’s nonmanufacturer rule can be found at 13 C.F.R. § 121.406(b)(1). Within, there are four requirements a small business, 8(a) or otherwise, must meet to satisfy the nonmanufacturer rule. First, the concern must not exceed 500 employees. Second, it must be primarily engaged in the retail or wholesale trade and normally sell the product being supplied. Third, it must take ownership or possession of the item at issue. Fourth, it must “supply the end item of a small business manufacturer, processor or producer made in the United States, or obtains a waiver of such requirement” pursuant to 13 C.F.R. § 121.406(b)(5).
The proposed rule only carries three of these requirements. Under the proposed 48 C.F.R. § 252.219-7010(d)(1), an 8(a) participant may be excepted from the nonmanufacturer rule if there is an SBA-issued waiver, in accordance with 13 C.F.R. § 121.1204, which aligns with the fourth requirement listed above. The proposed rule also requires the end item be “manufactured, processed, or produced” by a small business in the United States or its outlying areas. This aligns with, and slightly expands upon, the fourth requirement listed above. The proposed rule further requires the 8(a) participant be primarily engaged in the retail or wholesale trade and normally sell the product being supplied, which aligns with the second requirement listed above. Finally, the 8(a) participant must take ownership or possession of the item, which aligns with the third requirement listed above.
Under the proposed rule, an 8(a) participant does not have an employee count restriction, as is the case with SBA’s regulation. 8(a) companies, however, should still assume that they must fall beneath 500 employees to count as nonmanufacturers: the SBA’s regulation in 13 C.F.R. 121.406(b)(1) imposes this requirement.
As you can see, the proposed rule almost matches the DFARS regulations, 48 C.F.R. § 252.219-7010(d), with those of the SBA, 13 C.F.R. § 121.406(b)(1). Keep in mind, though, that while SBA’s regulations cover SDVOSB, HUBZone, WOSB, and 8(a) contracts, the DFARS regulation at issue only addresses 8(a) contracts.
Whether you are an 8(a) concern that is losing the “does not exceed $25,000” exception, a WOSB wanting the DFARS to incorporate WOSB nonmanufacturer regulations, or another entity that wishes to have your voice heard, remember that comments are accepted through May 31, 2019.
If we can’t receive your proposal on the due date and we forget to extend the due date, you can assume that it’s been extended until the next day we can receive it.
On behalf of the National Contract Management Association (NCMA) Board of Directors, I am pleased to announce the appointment of Kraig Conrad, CAE, CTP, as the new NCMA Chief Executive Officer. Kraig will formally take his position on November 1, 2018. Kraig joins NCMA with 20 years of association leadership experience. He most recently served as Chief Executive Officer of the Professional Risk Managers’ International Association (PRMIA), where he guided the PRMIA Board of Directors and its global network of more than 50,000 risk professionals to craft an enhanced vision for the group that includes a long-range strategic plan; new advocacy, certification, and training efforts; promoting the PRMIA brand; and enhancing membership benefits.
Prior to PRMIA, he held many roles at the National Investor Relations Institute, including Acting Co-Chief Executive Office and Vice President for Programs and Development. Kraig has also served as Research Lead for Strategy Practice at Corporate Executive Board, Director of Corporate Finance and Risk Management and Director of Strategic Alliances at the Association for Financial Professionals. He started his career as a Financial Analyst at Credit Suisse.
Kraig earned a Bachelor of Arts in Economics from the University of Southern California and a Master of Business Administration from the University of Illinois at Chicago. He is a Certified Association Executive and member of the American Society of Association Executives, and a Certified Treasury Professional and member of the Association for Financial Professionals.
The selection of Kraig concludes a national search supported by Staffing Advisors, a Washington, DC-based executive search firm. Kraig shares the NCMA dedication to professional growth and the educational advancement of acquisition and contracting professionals worldwide. Please join us in congratulating Kraig as we welcome him to the organization.
Founded in 1959, the National Contract Management Association (NCMA) is the world's leading professional resource for those in the field of contract management. The organization, which has over 18,000 members, is dedicated to the professional growth and educational advancement of procurement and acquisition personnel worldwide. NCMA strives to serve and inform the profession it represents and to offer opportunities for the open exchange of ideas in neutral forums. For more information on the association, please visit www.ncmahq.org.
Could Lucy Ellen Find Happiness at DPSC?
Many years from now . . . .
Shortly after we celebrate our country's independence on July 4, 2013, Wifcon.com will end its 15th year on the internet. With much help from the Wifcon.com community, I've raised a growing teenager. When I started, I was 49 and my hair was so thick that I often shouted ouch or some obscenity when I combed it. Wifcon.com has existed in 3 decades and parts of 2 centuries. During that period, I've updated this site for every work day--except for the week or so when I called it quits. I remember the feeling of relief. I thought it was over. However, many of you convinced me to bring it back. Yes, just when I thought I was out, many of you pulled me back in.
As I mentioned in an earlier post, someone once told me that Wifcon.com was my legacy. I once had great hopes for a legacy. Perhaps, a great saxophone player belting out a solo in front of thousands of fans and seeing them enjoying themselves. Instead, here I sit in my solitude looking for news, decisions, etc., to post to the home page. For many years, my dog Ambrose kept me company. Now, my dogs Blue Jay and Lily stare at me and look for attention. With my sights now set realistically, I accept that Wifcon.com is my legacy. It's the best I could do.
Every now and then, I receive an e-mail from someone thanking me for Wifcon.com. They tell me how it helped their careers. These e-mails keep me and Wifcon.com going.
The thoughts in these e-mails won't let me quit. I still search each night for something to add to the site in hopes that it will increase your knowledge. If I find something new, I still get excited. Often, it feels like a self-imposed weight around my neck. What started as a release for my imagination has evolved into a continuing and daily addition to the contracting community. In the evenings, it is as if I'm Maillardet's automaton. I head over to my office, sit before the computer, and update. Then I send the updated pages to Virginia where it is accessed from around the world. Maybe I'm addicted to Wifcon.com; maybe I was born with the Wifcon.com gene.
If you haven't added the numbers, I'm 64 now. Wifcon.com and I are showing our age. I can comb the top of my head with my fingers. The ouches and other obscenities caused by my once thick hair are gone. A recent upgrade to the discussion forum requires that I turn the "compatibility mode" off on my browser. In that mode, I realized that Wifcon.com is ugly. I have current software for the needed future redo of this site.
I am Wifcon.com; Wifcon.com is me. It is my legacy and my albatross. As always, thank you for your support.

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