Redstone Government Consulting Blog (49)

In days gone by, knowing which contract administration office you needed to work with was as easy as finding your local Defense Contract Management Agency (DCMA) Office.  DCMA used to accept and administrate pretty much all contracts, even other Federal Agencies with reimbursement of its services (e.g., NASA contracts).  This is no longer the case; Over the last few years, DCMA has made a significant effort to stay focused on what it refers to as its core business – basically research, development, engineering, test, production, and spares for major acquisition programs.  This leaves the administration of low value/low risk contracts, management and professional services contracts, architect-engineer services contracts, and many others to the buying command that issued them.

Showing both a philanthropical and adventurous side, Redstone GCI Senior HR Consultant Linda Scalf and Senior Managing Consultant Jonas Clem slurped, licked, smelled, bit, and tasted a variety of foods in this lighthearted competition.

In our 3rd episode of The FAR Truth, Redstone GCI Director John Shire shares important information regarding two crucial clauses, Limitation of Funds and Limitation of Cost. 

On April 8, 2020, Acting Principal Director for Defense Pricing and Contracting issued a memo providing guidance in support of DFARS Class Deviation 2020-O0013 – CARES Act Section 3610 Implementation.  The Class Deviation provides language for DFARS 231.205-79, CARES Act Section 3610 – Implementation.  The cost principle language makes costs of paid leave (including sick leave) allowable at the appropriate rates under the contract for up to an average of 40 hours per week and may be charged as direct to a contract.

Although the COVID-19 Pandemic and its impact on everyone is absolutely serious business, the nature of this “special day” blog is not necessarily serious business.   At times like these we hope that an element of levity will be accepted for what it is and not be misinterpreted as diminishing the serious nature of the pandemic. We also hope that everyone reading this is safe, healthy and adhering to the federal guidelines to limit the spread of COVID-19.

On March 20, 2020, Acting Principal Director for Defense Pricing and Contracting issued a memo increasing the progress payment rate from 80% to 90% for large businesses and 90% to 95% for small businesses.  The intent to increase cash flow to contractors running low on cash due to the impact of COVID-19.  See DoD Class Deviation 2020-O0010 for details.  The Defense Contract Management Agency is working to modify contracts as efficiently as possible.  Clients may want to contact their respective ACO to assist by providing a complete listing of all impacted contracts.

The President has announced he has invoked the 1950 Defense Production Act (DPA).  This act provides the Government with the ability to direct businesses to accept contracts and increase the production of necessary goods and services.  The act has been used numerous times since 1950 to support emergencies, including natural disasters and the war on terrorism.  The current fight with COVID-19 has necessitated it once again.  A July 28, 2014, Congressional Research Service paper titled “The Defense Production Act of 1950: History, Authorities, and Reauthorization” summarized the current act to include:

Courtney and Asa go to extreme lengths to avoid answering hard and uncomfortable questions on this month's Dish or Dish.

The Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)) is still in the process of working with DoD stakeholders and industry to finalize the development of the Cybersecurity Maturity Model Certification (CMMC). A stated on the OUSD(A&S) website: “The CMMC effort builds upon existing regulation (DFARS 252.204-7012) that is based on trust by adding a verification component with respect to cybersecurity requirements.” On March 13, 2020, Under Secretary of Defense Ellen Lord issued a statement on misleading cybersecurity certification information. She stated, “some third-party entities have made public representations of being able to provide CMMC certifications to enable contracting with DoD.” This is not a factual statement as “[t]he requirements for becoming a CMMC third-party assessment organization (C3PAO) have not yet been finalized.”