Redstone Government Consulting Blog (31)

The National Institutes of Health Acquisition and Assessment Center (NITAAC) released its long-awaited Request for Proposal (RFP) for the Chief Information Officer – Solutions and Partners (CIO-SP4) program on May 25, 2021. Phase I of the evaluation of offeror proposals will consist of validation of the offeror’s completed self-scoring sheet and ranking the offerors based on this scoring. Only the highest rated offerors will advance to phase 2 of the evaluation. Accordingly, every point counts!

Overview:

• EEOC increases the monetary penalty for violating notice-posting requirements. 
• On May 18, 2021, the IRS released guidance regarding tax relief provided by the "American Rescue Plan Act of 2021" for COBRA-related continuation of health coverage.
• OSHA released new guidance on employer requirement to record adverse reactions to COVID-19 vaccination if the employer requires employees to take the vaccine.
• The Department of Health and Human Services announced, "the Office for Civil Rights will interpret and enforce Section 1557 and Title IX's prohibitions on discrimination based on sex to include: (1) discrimination on the basis of sexual orientation; and (2) discrimination on the basis of gender identity."
• The CDC provided updated guidance for fully-vaccinated individuals on May 13, 2021, relaxing the recommendations for wearing face masks and social distancing. 

For many contractors (truly, for any business), any event with the word “Audit” in the name has a scary connotation. And when you add DCAA to that, a contractor’s blood pressure may automatically rise. However, the best way to rock an audit is to understand what it is for and be prepared for it.

A commercial item determination should define the item or service, document market research, identify the FAR 2.101 Commercial Item definition, and include a “determination” that the item is commercial. Sounds easy right!

What is CUI, CDI and CTI?

CUI is Controlled Unclassified Information and encompasses all Covered Defense Information (CDI) and Controlled Technical Information (CTI). CUI requires the safeguarding or dissemination of controls pursuant to applicable laws, regulations, and government-wide policies.

• Covered Defense Information (CDI) is unclassified controlled technical information or other information described in the Controlled Unclassified Information (CUI) Registry found here.
• Controlled Technical Information (CTI) is technical information with military or space application that is subject to controls on the access, use, reproduction, modification, performance, display, release, disclosure, or dissemination. It does not include information that is lawfully publicly available without restrictions.

What are the circumstances necessitating the use of a letter contract which is also referred to as an undefinitized contract? The main circumstance is the government’s interests demand that the contractor immediately begin work and negotiating the final contract price (definitized) isn’t possible in order to meet the needs of the buying activity. Letter contracts should only be used when the work needs to immediately begin and there isn’t sufficient time to agree on the final terms and conditions. The government and prime contractors use letter contracts to immediately start work and then set a schedule to work towards negotiating to the finish line.

Whistleblower claims are on the rise with alleged violations of health and safety laws as well as fraud and abuse under the CARES Act due to the pandemic. Employers need to ensure they are familiar with the whistleblower laws and their responsibilities under government contracts.

Overview:

• Biden Administration signs Executive Order to Increase Minimum Wage for Federal Contractors to $15/hour
• I-9 Physical Inspection eased again until May 31, 2021
• OFCCP – Focused Reviews canceled
• OFCCP updated the 2021 Annual Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) hiring benchmark
• Annual AAP Certification – Will OFCCP require this soon?
• Biden’s American Rescue Plan includes new COBRA subsidy requirement for most employers
• On April 15, 2021, the House passed the Paycheck Fairness Act (H.R. 7)

DoD-IG Goes After DCMA for not Supporting DCAA Findings

On February 26, 2021, the DoD-IG issued an audit report raising significant concern about the actions taken by DCMA Administrative Contracting Officers (ACOs) in relation to DCAA audit findings. The Finding section of the DoD-IG report found that out of 30 DCAA audit reports at two of the largest DoD contractors, 14 were not properly addressed per Federal Acquisition Regulation requirements by the cognizant ACO. Our guess and POGO believes the large DoD contractors are Lockheed Martin and Boeing – but this is only our guess. The DoD-IG report goes on to state that: “As a result, DCMA contracting officer actions on the eight audit reports may have resulted in improperly reimbursing DoD contractors up to $97 million in unallowable costs on Government contracts. In addition, because DCMA contracting officers did not take timely action on six audit reports, they delayed the correction of CAS noncompliances and the recovery of any increased costs due to the Government.” The report goes on to state that: “The Defense Contract Management Agency Director agreed with all five recommendations,” including reviewing ACO decisions to “Disallow and recoup any unallowable costs not previously disallowed.” (Evaluation of Defense Contract Management Agency Actions Taken on Defense Contract Audit Agency Report Findings Involving Two of the Largest Department of Defense Contractors – DoD-IG-2021-056, Dated February 26, 2021)

The DFARS requires contractors to maintain compliant systems for Material Management and Accounting System (MMAS). This video and article will help you understand the requirements of a compliant Material Management and Accounting System.