Redstone Government Consulting Blog | Contracts & Subcontracts Administration (20)

Over the past few months Redstone GCI has made several significant investments in our software services practice. For many years we have supported our clients with Deltek solutions, as well as many of our small business clients with QuickBooks assistance. In July, we added a new staff member to our ranks to better support our Deltek clients. Jimmy Baker will be leading our Costpoint and GCS support services, and we are excited to introduce him to our existing clients. Jimmy has been working with Costpoint for over 20 years decades, and has a great deal of experience working with larger system implementations, as well as new implementation and design for smaller companies utilizing Costpoint. He most recently assisted a very large government contractor with worldwide integration and conversion to Deltek Costpoint.

In compliance with 41 U.S.C 1908, adjustments were made to statutory (and non-statutory) acquisition thresholds to accommodate inflation, using the Consumer Price Index. Government Contractors should take note of the threshold changes and be prepared to accommodate the revised thresholds beginning in October 2015 by make the appropriate adjustments to respective policies, procedures, and practices.

A Prospective View of Model Employer (Government Contractor)

On April 15, 2015, members of the self-proclaimed Congressional Progressive Caucus called for an Executive Order (EO) which would define a model employer and provide model employers with preferences in terms of government contract awards.  The Progressive Caucus envisions an EO which would define a model employer to include a minimum wage of $15/hour, other benefits including paid time off, full-time hours and predictable schedules.  As noted by this Caucus, the 2014 EO which raised the minimum wage to $10.10/hour for employees of government contractors was simply not enough to eliminate stagnant wages which tether jobs to poverty and government assistance. 

Most contractors (those with calendar year ends) have incurred cost proposals (ICP) due to the government on June 30 and we know that preparing the incurred cost proposal can be stressful and time consuming.  We have prepared 10 helpful tips for contractors to consider when preparing their ICP this year to help alleviate stress, reduce the amount of time spent preparing the ICP and most importantly to result in ICP adequacy.

As a follow-up to a brief article in our February Newsletter which noted the February 4, 2015 disposition of a business systems proposed rule, “closed without further action”, it’s critical for government contractors to recognize that the proposal would have just added to an existing rule; however, what remains is far more substantial than the proposed changes.

Congratulations! You have won your first prime federal contract – now what do you do?! Unfortunately, regardless of how many contracts a company has won, the focus seems to be on “the win” and NOT how a company is going to manage and administer the contract. Larger companies’ that have been around for years have figured out through the “school of hard knocks” (i.e. Government audits, ACO cure notices, contract terminations, debarments, system inadequacies, etc…), how to comply with all the federal laws and regulations that are inevitably part of the Federal government contract you were just awarded.

Although the details are yet to be determined, there is no question that Republican control of both the Senate and the House could significantly impact government contracting.

In March 2013, we blogged about “a new Sheriff in town”. That blog commented on DFARS 252.244-7001 Contractor Purchasing System Administration which sets forth 24 criteria to be used in the determination of an adequate contractor purchasing system. It also reflected on DCMA-INST 109 Contractor Purchasing System Reviews issued November 2012 which has since been revised in January 2014. At the time it was unclear as to just what DCMA would be including in its reviews.  Specifically what criteria would it use when evaluating a contractor’s purchasing system. Late last year we began seeing a bad trend from DCMA reviewers. 

President Obama signed another executive order July 31 2014 which will mandate contractors to disclose prior violations of federal labor laws, the superficial purpose of which is to enable federal procurement process to protect contractor workers and improve integrity of selection of contractors for future awards.