Your newly awarded government contract requires you to move significant amounts of equipment prior to receiving a Notice to Proceed (NTP). You spend thousands of dollars moving equipment and people into place so you are ready to perform once the NTP is issued. But what if instead of issuing the NTP the agency cancels your contract? Are you out all of the costs incurred to prepare for the NTP?
Not necessarily. The Armed Services Board of Contract Appeals recently reviewed just this situation and awarded a significant amount to the contractor.
The Department of Defense awarded contracts to an average 30,806 small businesses each year in fiscal year 2016, 2017, and 2018. A proposed rule to update the DFARS may lead to these same businesses receiving payments from the government, or prime contractors, within 15 days of invoicing.
The proposed rule is found at 84 FR 25225. It was published on May 31, 2019 and comments close on July 30, 2019 if you’d like to put in your two cents.
For most Americans, tax season is happily behind them and Memorial Day festivities signaled the start of summer. A recent GAO report, however, may give cause for some federal contractors to revisit their tax policies before lighting up the grill next weekend.
Contracting Officers are required to take in a wealth of information prior to awarding a contract. One piece of information each contracting officer is supposed to review is the tax status of offerors. If an offeror is delinquent in paying taxes, the contracting officer has several subsequent review steps to take. But contracting officers do not not always conduct this review, so Congress asked GAO to review the impact of these missing steps.
Your company has submitted a proposal for a Lowest-Priced, Technically Acceptable acquisition. To your surprise, you find out another company has submitted a technically acceptable offer with the same price. Equally surprising, the solicitation does not contain any provisions instructing the agency on how to pick from otherwise equal bids. So what is the contracting officer to do – issue an order for a standoff, a la the O.K. Corral? (For the record, we do not advise this as a viable method of conflict resolution.)
Fortunately, GAO encourages a less drastic solution–use of the contracting officer’s reasonable discretion.