OMB Circular – Proposed Guidance

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Reform of Federal Policies Relating to Grants and Cooperative Agreements; Cost Principles and Administrative Requirements (including Single Audit Act)

By: Mary Karen Wills

The complete text of this proposal and a crosswalk of policy changes from the existing guidance are available on the OMB website under Proposed Policies.

This guidance is applicable to grants and cooperative agreements that involve state, local, and tribal governments, as well as institutions of higher education and nonprofit organizations. The proposal rule seeks to consolidate and streamline the requirements from OMB Circulars A-21, -89, -110 and -122. In addition, Circulars -50, -89, -102, and -133 on audits would be consolidated and streamlined. This guidance seeks to minimize the burden associated with compliance and audits for the grants and cooperative agreements with the aforementioned organizations. The goal would be to replace these eight circulars with one document, resulting in a single set of rules across these entities that currently have varying degrees of requirements.

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BRG’s GovCon Insight Blog

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Berkeley Research Group (BRG) Government Contracting experts are proud to launch the GovCon Insight blog. The government contracting marketplace is constantly evolving; as federal budgets shrink, organizations receiving federal funds will be subject to increased scrutiny, oversight, and regulations.

GovCon Insight will provide contractors with a resource that contains timely insight and analysis of regulatory updates, audit trends, and current news that impact organizations receiving federal contracts, grants, and cooperative agreements.

The views expressed in this article are those of the authors and do not necessarily reflect the position or policy of Berkeley Research Group, LLC.

Key FAR Updates

Nondisplacement of Qualified Workers Under Service Contracts – Final Rule (FAR Case 2011–028)

By: Ryan Byrd

This final rule adds FAR subpart 22.12, entitled ‘‘Nondisplacement of Qualified Workers Under Service Contracts,’’ and a related contract clause.

The regulations require that workers on a federal service contract who would otherwise lose their jobs as a result of the completion or expiration of a contract be given the right of first refusal for employment with the successor contractor. The regulations apply to all service contracts (prime and subcontractor) above the simplified acquisition threshold (currently $150,000) and their solicitations, except those excluded, that succeed contracts for the same or similar services at the same location. The FAR excludes certain types of contracts and employees from its requirements, and allows the head of a contracting department or agency to exempt any of its contracts from the regulations if it finds the requirements would not serve the purposes of the Equal Opportunity Act or would impair the federal government’s ability to procure services economically or efficiently.

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Ashton Carter Memo – Handling Budgetary Uncertainty in Fiscal Year 2013

Ashton Carter MemoBy: Ryan Byrd

On January 10, 2013, Deputy Secretary of Defense Ashton Carter issued a memorandum for the secretaries of the various military departments regarding the handling of the budgetary uncertainty in fiscal year 2013.

In the memo, Mr. Carter identifies two sources of the budgetary uncertainty: the Continuing Resolution (CR) and the potential of the deferred sequestration. The CR holds the operating funding for the DoD at FY 2012 levels and could be extended to the end of the fiscal year if Congress does not enact appropriations bills for FY 2013. The potential sequestration could occur as early as March 1, 2013.

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GAO Report GAO-13-158 – Pension Costs on DoD Contracts: Additional Guidance Needed to Ensure Costs Are Consistent and Reasonable

By: Matt Franz

On January 22, 2013, the GAO issued a report on its review of DoD contractor pension costs. The review was performed in response to an increase in pension costs since the 2008 market downturn and the prospect of recent changes to Cost Accounting Standards (CAS) and Employee Retirement Income Security Act (ERISA) rules regarding the calculation of pension costs potentially resulting in further cost increases.

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GovCon Research Report: Volume 1, Issue 3

GovConResearchReport Image 2.pdfBerkeley Research Group’s Government Contracts Advisory Services (GCAS) practice keeps its clients up to date on the latest regulatory developments affecting the government contracts industry. This edition of the GovCon Research Report summarizes the critical regulatory and compliance issues contractors faced in the fourth calendar quarter of 2012. The issues are summarized by the following key subject-matter areas:

  • Key Federal Acquisition Regulation (FAR) Updates
  • Key Defense Acquisition Regulation (DFAR) Updates
  • GSA and VA Schedule Matters
  • Pertinent Government Accountability Office (GAO) Audit Reports
  • Other Relevant News

To read the full report, click here.