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Posted on November 14, 2013 by Public Contracting Institute
Last week we learned that the DOD issued an interim rule about “private sector notification of in-sourcing actions,” and invited small business concerns and other interested parties to submit written comments about its impact. This interim rule revises DFARS 237.102-79, and requires contracting officers to provide “written notification to affected incumbent contractors of Government in-sourcing determinations.” The notification must be provided within 20 business days of insourcing decision and must “summarize the requiring official’s final determination as to why the service is being in-sourced.” Although the interim rule essentially tracks much of the guidance found in the DOD’s January 2013 memorandum, the DOD’s invitation to submit written comments provides another great opportunity for contractors to voice their concerns about the current notification framework and its … Continue reading →
Posted in Government Contracts Education, The Practical CAS	| Leave a reply
CAS 418 – Allocation of Direct and Indirect Costs (Part 3 of 6)
*This is Part 3 of a 6-part blog. Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. This Part 3 addresses some of the requirements/techniques for application related to allocation bases. Part 4 will address the requirements/techniques for application related to allocation bases not addressed in Part 3 of this blog. Part 5 will address special allocations. Part 6 will address pre-determined indirect rates. Background: This standard provides the criteria for the accumulation of indirect costs, including service center and overhead costs, in … Continue reading →
Posted in The Practical CAS	| 1 Reply
House Armed Services Committee (HASC) Signals DOD Acquisition Reform Effort
Posted on November 1, 2013 by Public Contracting Institute
Yesterday HASC Chairman Rep. Buck McKeon (R-CA) announced that Committee Vice Chairman Rep. Mac Thornberry (R-TX) will lead “a long term DOD reform effort that includes a hard look at acquisition.” During the HASC hearing, Rep. McKeon noted that there are “still significant challenges facing the Defense acquisition system,” and explained that “we cannot afford a costly and ineffective acquisition system, particularly when faced with devastating impacts of repeated budget cuts and sequestration. The Congress together with the Department of Defense and industry must be willing to do the hard work to find root causes, look past band-aid fixes and parochial interests, and have the courage to implement meaningful, lasting reform.” One theme that surfaced in the written testimony was the need to streamline the … Continue reading →
Posted in Government Contracts Education	| Tagged acquisition	| Leave a reply
The Shutdown is Over—Now How Do I Get Made Whole?
Posted on October 25, 2013 by Public Contracting Institute
As a result of passage of Public Law No. 113-46, the Federal Government re-opened on October 17, after a sixteen day shutdown. The new statute makes continuing appropriations through January 15, 2014 (thus ending the government shutdown), and increases the debt limit through February 7, 2014, which means a several months reprieve from the threat of another shutdown or debt ceiling impasse. Now that contractors and the government are resuming full performance of all contracts, contractors are assessing the impact that the shutdown has had on their contracts and whether contractual relief may be available. Many contractors have suffered delays and increased costs from the closure of government facilities and the unavailability of government personnel for contract administration, or have continued performing in an underfunded status. With the temporary … Continue reading →
Posted in Government Contracts Education	| Tagged Anti-Deficiency Act, appropriation, shutdown	| Leave a reply
ASBCA Decision Highlights The Risk Of Non-Performance Under A Purchase Order
Posted on October 24, 2013 by Public Contracting Institute
The ASBCA’s recent decision in TTF LLC, ASCBA Nos. 58495, 58516 offers an important reminder to contractors working under Purchase Orders (POs): some POs do not become binding contracts until performance is competed thereunder. As highlighted in TTF LLC, this distinction has serious consequences when asserting a claim. In that case, the Government issued a unilateral PO, but the CO cancelled it when the contractor failed to deliver by the deadline established in the PO. After the CO denied the contractor’s delay claim (related to first article approval) and wrongful cancellation claim, it appealed to the ASBCA. In a swift opinion, the ASCBA denied the appeal because it determined that “[the contractor] has no ‘contract’ with the [Government] pursuant to which it can pursue a … Continue reading →
Posted in Government Contracts Education	| Tagged delay claim, PO, purchase order	| Leave a reply