Army Improperly Extended Contracts, GAO Says

The Army improperly used FAR 52.217-8 (Option to Extend Services) to extend several contracts for periods much longer than the six-month maximum allowed by the clause.

This conclusion comes from a recent GAO study, in which the GAO determined that the Army improperly applied FAR 52.217-8 in three out of five contracts studied by the GAO.  And although the GAO’s report was narrowly focused on a handful of Army contracts, it leads me to wonder whether FAR 52.217-8 is being improperly used on a much broader scale.

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EEOC’s Proposed Pay Disclosure Rule Will Impact Larger Contractors

On January 29, the U.S. Equal Employment Opportunity Commission announced a proposed modification to its Employer Information Report (EEO-1) form that will impact employers—including federal government contractors—with 100 employees or more.

Under the proposed modification, beginning in September 2017, these employers will be required to report their employees’ pay ranges and hours worked, broken down by the gender and race/ethnicity of employees. Contractors with 50 to 99 employers, who must also complete EEO-1s, would be exempt from the new requirement.

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GAO: On Unrestricted Solictitation, No Extra Credit For Small Business Status

An offeror on an unrestricted solicitation was not entitled to “extra credit” in the evaluation on account of its small business status.

In a recent bid protest decision, the GAO held that an agency, during its evaluation of proposals under an unrestricted solicitation, had no obligation award extra credit to the protester just because the protester was a small business.  In its decision, the GAO rejected the protester’s argument that a FAR clause establishing a policy of maximizing small business participation required the agency to give an evaluation preference to a prospective small business prime contractor.

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New Background Check Agency Will Affect Contractors

Contractors often complaint that the background check process is slow, while contractors and their employee alike worry about information security in the wake of a sensitive OPM data breach that leaked the personal information of millions of government workers and contractors. Now, a change to the background check process is coming.

The White House announced last week that a new government agency would be taking charge of conducting background checks on all federal employees, Armed Services members, and civilian contractors. The government hopes the change will speed up background checks on contractors, many of whom have to wait months before a background check is completed, while also maintaining security over personal information. Of course, as with any government roll-out of a new initiative, it remains to be seen whether the new agency will live up to expectations.

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SmallGovCon Week In Review: January 25-28, 2016

It is hard to believe that Tuesday is Groundhog Day already. As we all wait in anticipation for him to emerge from his burrow, and hopefully not see his shadow, we offer you some reading material to help make your wait more enjoyable.

This final January 2016 edition of SmallGovCon Week In Review brings you a look at the Lockheed Martin/Leidos merger, a cautionary tale about the dangers of violating federal prevailing wage laws, new principles behind the VA’s procurement strategies, and much more.

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Buy Indian Act: New Policy Memo Aims To Increase Set-Asides

Buy Indian Act set-asides might increase following the Department of the Interior’s recent release of a Buy Indian Act National Policy Memorandum.

In the January 2016 Memorandum, the DOI establishes a policy of maximizing the use of the Buy Indian Act and increasing the number of Buy Indian Act set-asides.  The Buy Indian Act Memorandum comes in the wake of a GAO Report issued last summer, which criticized the Bureau of Indian Affairs and the Indian Health Service for their implementation of the Buy Indian Act.

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GAO: Agency Reasonably Adjusted Sub’s Unsubstantiated Costs

Under a solicitation for a cost-reimbursable contract, an offeror’s proposed costs are not controlling, because the government is on the hook for the contractor’s actual and allowable incurred costs. Before making an award decision, the government must consider whether the proposed costs should be upwardly adjusted.

A recent GAO bid protest decision highlights the need for offerors bidding on cost-reimbursable work to make sure that their proposed costs are realistic and substantiated—including the proposed costs of major subcontractors.

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