Redstone Government Consulting Blog (23)

Katie Donnell and I attended the Unanet Champions Conference in Phoenix, Arizona, May 1-3, 2022. Unanet Champions started out with an amazing motivational speaker, Carey Lohrenz. Carey was the 1st Female F14 Pilot in the US Navy. Carey overcame many obstacles as the 1st Female F14 Pilot. Talk about inspiration! As someone who was used to flying at Mach 2, working in a fast-paced and constantly changing environment, she spoke about adapting quickly to avoid risks and shared steps in leadership that will help your team win every time.

The FAR Council published a final rule on March 7, 2022, implementing revisions to the Buy American Act. The final rule strengthens the impact of Federal procurement preferences for products and construction materials domestically manufactured from substantially all domestic content and is effective October 25, 2022.

Overview

• The 2021 EEO-1 data collection period closed on May 17, 2022, but there’s still time to file your report if you missed the deadline!
• The Office of Federal Contract Compliance Programs (OFFCP) has released a new Corporate Scheduling Announcement List (CSAL) for Supply and Service Contractors.
• Covered federal contractors must certify their Affirmative Action Plans (AAP) through the OFCCP Contractor Portal by June 30, 2022. Please contact our HR Team if you need assistance with your AAP or the certification process.
• The US House of Representatives passed the CROWN Act on March 18, 2022.
  

In the previous blog of this series, we focused on the requirements of federal government contractors (prime and subcontractors) who meet the basic threshold requirements (specific dollar thresholds and fewer than 50 employees). As we progress in this series on OFCCP and Affirmative Action Requirements, we begin to dive into OFCCP’s expectations of a contractor’s Affirmative Action Program (AAP). As a reminder, contractors are required to have an AAP when meeting the dollar thresholds mentioned above and have an employee count of 50 or more.

We recently got all of our employees together for a Spring Fling. BBQ, axe throwing, and spending time with one another. A great time was had by all!

What is a CPSR Review?

A CPSR Review is a Contractor Purchasing System Review. This review is performed by the Government on a contractor, in order to:

• assess the overall health of the purchasing organization,
• evaluate the efficiency and effectiveness of the contractor’s practices in expending Government funds,
• perform an independent review of the contractor’s system to optimize its effectiveness in compliance with Government policy, and
• identify risk to provide the Administrative Contracting Officer (ACO) a basis for approving or disapproving the purchasing system.

Does the Total of All Proposed Subcontract Costs Exceed 70% of the Total Contract Costs?

Is your company submitting a proposal to the government/prime contractor that includes a total of all subcontract costs exceeding 70 percent of the total costs proposed? If so, you must identify “added value” in your proposal so the government/auditor does not classify the indirect cost applied to the total subcontract cost as “excessive pass-through charges.”  The government considers indirect costs and profit/fee that a contractor applies to subcontract costs that exceed 70 percent of the contract to be “pass through costs.” This applies to lower tier subcontract costs also. If there is no negligible value added by the contractor, the government or auditor will question the indirect costs and profit/fee applied to the subcontract costs as unallowable excessive pass through under FAR 31.203(i).

Due to the recent Russian invasion in Ukraine, there has been a significant increase in cyber-attacks reported across the world. While the U.S. Government has concerns related to attacks on U.S. companies including banks, power companies, fuel suppliers, they are also concerned with defense contractors. President Biden has issued multiple warnings to companies including defense contractors about looming cyber-attacks.

Now that year-end and quarter 1 is behind us, what is next? If you guessed Incurred Cost Submissions (ICS), you are correct. June 1^st is fast approaching and there are a few housekeeping items you can do to ensure that your accounting team has an efficient and painless process ahead of them.

Overview

• The 2022 Annual Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) national hiring benchmark was recently updated on the VEVRAA Hiring Benchmark Database.
• Component 1 EEO-1 reports are due May 17, 2022. The Redstone GCI HR team can support you with preparing and filing your EEO-1 report. Please contact us today if you are in need of assistance.
• Covered federal contractors must certify their Affirmative Action Plans (AAP) through the OFCCP Contractor Portal by June 30, 2022. Please contact our HR Team if you need assistance with your AAP or the certification process.
• The Office of Federal Contract Compliance Programs issued a new directive (DIR 2022-02) that is intended to promote effective enforcement of the equal employment opportunity laws that the agency enforces.
• The Department of Homeland Security has announced updates regarding the I-9 form and its verification Beginning May 1, 2022, DHS will no longer allow employers to accept expired List B Documents for form I-9 verification. If an employee presented an expired List B document between May 1, 2020, and April 30, 2022, employers are required to update their I-9 forms by July 31, 2022. DHS has provided a helpful table that explains the updated requirements.
• The current version of the I-9 form expires on October 1, 2022. DHS plans to “re-vamp” the form with several goals in mind:
  • Compressing Sections 1 and 2 from two pages to one page to reduce paper use.
  • Moving Section 3 to a separate Reverification and Rehire Supplement.
  • Updating the List of Acceptable Documents to include a link to List C documents (on the U.S. Citizenship and Immigration Services website) issued by DHS.
  • Reducing and simplifying the form's instructions from 15 pages to 7 pages.
  • Removing electronic PDF enhancements to ensure that the form can be completed on all electronic devices. 
• It is expected that the US Department of Labor (DOL) will publish a proposed overtime rule in the very near future.
• An Appeals Court recently upheld a COVID-19 Vaccination Directive that requires federal workers to be vaccinated.
• EEOC leaders recently discussed four areas that they aim to focus on in 2022. These areas include:
  • COVID-19 Mandates
  • Diversity and Tech
  • DEI Demographics Audits
  • Disability Rights
• The EEOC recently released a technical assistance document regarding Caregiver Discrimination due to the COVID-19 Pandemic.