The National Defense Authorization Act for Fiscal Year 2018 bill authorizes appropriations and sets forth policies for Department of Defense (DOD) programs and activities, including military personnel strengths. It does not provide budget authority, which is provided in subsequent appropriations legislation. Continue reading Congress Approves NDIA 2018
Effective May 30, 2014, the DoD, GSA, and NASA adopted as final an interim rule that updates FAR 31.205-6(p), “Limitation on allowability of compensation for certain contractor personnel.”
By: Homer Winter
On January 29, 2014, the Department of Defense published an interim rule (DFARS Case 2013-D016) amending the Defense Federal Acquisition Regulation Supplement to carry out section 811 of the National Defense Authorization Act for Fiscal Year 2013. The interim rule requires the DoD to implement acquisition procedures that prohibit the use of cost-type contracts for the production of major defense acquisition programs (MDAPS). This interim rule pertains to all MDAPS contracts entered into on or after October 1, 2014.
October – December 2013
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.
The seventh edition of the GovCon Research Report summarizes the critical regulatory and compliance issues contractors faced in the fourth calendar quarter of 2013. The issues are summarized by the following key subject-matter areas
- National Defense Authorization Act of Fiscal Year 2014
- OMB Final Guidance
- Key Federal Acquisition Regulation Updates
- Recent Updates to Defense Contract Audit Agency Guidance
- Defense Federal Acquisition Regulation Supplement Updates
- Relevant GAO Reports
- Department of Defense – Office of Inspector General Reports
December proved to be an eventful month in the procurement world as it relates to contractor compensation. On December 26, President Obama signed both the Bipartisan Budget Act of 2013 (BBA) and the National Defense Authorization Act for Fiscal Year 2014 (NDAA). Continue reading Significant Changes to Compensation Limit on the Horizon as President Signs Budget Deal and FY2014 NDAA
By: Mary Karen Wills
The U.S. Government Accountability Office (GAO) is performing a review of government contractor employee compensation. The report is due to Congress by May 2, 2013. Congress has requested that the GAO assess the impact of proposed regulations included in the 2013 National Defense Authorization Act that would further cap-allowable executive compensation for contractors. GAO must assess the potential impact of a new cap on the contractor industry base. In addition, GAO will assess the inconsistencies of current caps on executive compensation across federal agencies.
GAO is currently soliciting input. To provide comments, go to http://www.gao.gov/
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.
By: Kelly Lynch
In recent years, oversight and scrutiny have increased on the award of sole-source contracts to 8(a) firms. Before 2009, no Federal Acquisition Regulation (FAR) requirement was in place for documented justification when awarding a contract greater than $20 million to an 8(a) firm using non-competitive means. The timeline of the key changes to this process is as follows:
- October 2009: The FY 2010 National Defense Authorization Act (NDAA), Section 811, required that the FAR be revised to include the requirement that written justification be provided for sole-source awards to 8(a) firms. See full text of the article: FY 2010 National Defense Authorization Act
- March 2011: The FAR was updated to reflect the requirement set forth in the FY 2010 NDAA. Agencies were required to implement the new justification requirement. The FAR requires that, as a minimum, the justification include five criteria:
- Description of the needs of the agency concerned for the matters covered by the contract
- Specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract
- Determination that the use of a sole-source contract is in the best interest of the agency concerned
- Determination that the anticipated cost of the contract will be fair and reasonable
- Such other matters as the head of the agency concerned shall specify for purposes of this section