Redstone Government Consulting Blog (28)

Lockheed Martin raised a great question to the ASBCA as to “whether the Fly America Act, 49 U.S.C. § 40118 (FAA) and Federal Acquisition Regulation (FAR) 52.247-63 only apply to direct personnel performing direct work on covered contracts, or also applies to indirect personnel or indirect travel.”[1] The Board declined to hear the case as there was no “live dispute” at hand.

[1] Armed Services Board of Contract Appeals Case No. 62377

Below is a novel thought, uttered in 1911 by the President of Columbia University, that may be equally true today:

I weigh my words when I say that in my judgment the limited liability corporation is the greatest single discovery of modern times. Even steam to electricity are far less important that the limited liability corporation, and they would be reduced to comparative impotence without it.[1]

[1]   Corporate Law & Practice (Practicing Law Institute, 2^nd Ed. 1999) at p. 11.

What is the Commercial Item Group (CIG)?

So, what is the DCMA CIG? They are the “cadre of experts” established under DCMA as a result of Section 831 of the FY 2013 National Defense Authorization Act (NDAA). The purpose of the CIG is to assist DoD contracting officers in making commercial item determinations. There are several DCMA ACO’s that have warrants specific to making commercial item determinations on contractor assertions or higher-tier contractor determinations of its supplier’s assertions at the request of a buying command. DCMA CIG has price analysts and engineers that perform market research, evaluate the commercial submission, determine whether pricing is fair and reasonable as well as provide negotiation support.

At the end of each of the DCAA audit programs for contractor business systems, DCAA discusses what it refers to as “Less Severe Significant Deficiencies.” These are clearly deficiencies which do not meet the DFARS definition of a “Significant deficiency.”[1] As a result, the withhold requirement provided for in DFARS 252.242-7005 cannot be applied.

This video is the first part of a two part series where we provide an overview of some of the expectations that come with completing a Government proposal and their respective realities.

This article is under review as a result of EO 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, signed by President Trump on January 21, 2025. As we await further information from OFCCP and the courts, please reference this article for current status and action items.

What is it?

The Office of Federal Contract Compliance Programs (OFCCP) Affirmative Action Program Verification Interface (AAP-VI), or “Contractor Portal” is a new platform to be used by covered government contractors (prime and subcontractors) to:

• Annually certify that they are complying with the requirement to develop and maintain annual Affirmative Action Plans (AAP).
• Upload Affirmative Action Plans and other requested materials during an OFCCP compliance evaluation.

Overview

• The Departments of Labor, Health and Human Services (HHS), and the Treasury have jointly released information to help answer common questions relating to the coverage of at-home covid tests by group health plans. 
• President Biden signed an Executive Order (EO) on Use of Project Labor Agreements for Federal Construction Projects for federal construction projects valued at $35 million or more. 
• On February 1, the US DOL announced plans to hire 100 Investigators “to support its Wage and Hour Division’s compliance efforts.”
• A large automotive employer will pay $600,000 to settle a class-action lawsuit due to their issuance of deficient COBRA notices. 
• Congress has passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act for sexual assault and harassment cases. 

In my last blog post, I discussed whether you could have a DCAA Approved Accounting System with QuickBooks. If you read it, then you know the answer is definitely – yes. This begs the next question though: QuickBooks Online (QBO) or QuickBooks Desktop? One might think that they’re essentially the same with one just being a cloud version and the other a local install. That could not be further from the truth. The two products are actually very different in terms of functionality and capabilities. A couple of years ago, I would have told you that QBO was just not an option for a government contractor. Appropriate job costing just couldn’t be done. In recent years though, Intuit has focused a lot of their internal development on QBO, and the product has come a long way. In this article we’ll go over some of the key differences between the two QB options, and hopefully help you decide which is right for you. Note that this is NOT a fully comprehensive comparison of all the different features, but rather a focus on some of the primary differences that are most relevant for government contractors.

As more and more companies are acquiring companies or being acquired, a predominant question that arises is can I do work with my new or existing affiliates. The simple answer is yes, but there are specific requirements in the FAR on how transactions are performed between affiliates. The requirements of intercompany transactions are found in two primary cost principles FAR 31.205-26 – Materials Costs and FAR 31.205-36 Rental Costs.

This is the third blog in a three-part series on progress payments for Government contractors. In this blog we will discuss the estimate to complete, and the adjustments needed when there is a projected loss on a contract.