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.
Berkeley Research Group is a proud reception sponsor at the 19th Annual ABA Federal Procurement Institute. Come join professionals from the BRG Government Contract Advisory Services practices on March 14 – 15, 2013 at the Loews Annapolis Hotel. We hope to see you there!
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.
Continue reading Key FAR Updates
By: 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.
Continue reading Ashton Carter Memo – Handling Budgetary Uncertainty in Fiscal Year 2013
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.
Continue reading GAO Report GAO-13-158 – Pension Costs on DoD Contracts: Additional Guidance Needed to Ensure Costs Are Consistent and Reasonable
Berkeley 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.
FAC 2005-65; FAR Case 2011-011
By: Ryan Byrd
This final rule amends FAR 31.205-41, 52.229-3, 52.229-4, 52.229-6, and 52.229-7 to implement certain requirements of section 301 of the James Zadroga 9/11 Health and Compensation Act of 2010 (Pub. L. 111–347), which imposes a 2-percent excise tax on certain federal procurement payments to foreign persons. The law amended the Internal Revenue Code by adding a new section 5000C.
Continue reading Unallowability of Costs Associated With Foreign Contractor Excise Tax