Con t r act s S O M E G R O UND RUL E S FAR Federal A cquisition R egulations C o m pe t i t i ve l y B i d or N ego ID: 655097
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Slide1
FAR UpdatesSlide2
G
o
v’t Contracts– SOME GROUND RULES
FAR
–
Federal
A
cquisition
R
egulations
–
C
o
m
pe
t
i
t
i
ve
l
y
B
i
d
or
N
ego
t
i
a
t
ed
–
C
an
be
w
ho
l
e
o
t
her p
r
esen
t
a
t
i
on.
M
ost of con
t
r
act
i
s
N
on
-
nego
t
i
ab
l
e;
f
o
r
ce
&
e
ff
ect
of
l
a
w;
Cl
auses
not
i
n
t
he
con
t
r
act
m
ay
s
t
il
l
be
r
ead
i
n
t
o
t
he con
t
r
act
F
l
o
w
-
do
w
n
r
equ
i
r
e
m
en
t
s
t
o
subcon
t
r
ac
t
o
r
s
P
r
esc
r
i
bed
c
l
a
i
m
s
and
d
i
spu
t
es
p
r
ocedu
r
es
–
I
M
P
O
R
T
A
N
T
TO
K
N
O
W
H
O
W
T
H
ESE
W
O
R
K
!
!
–
T
i
m
elin
e
s
s
&
W
ai
v
e
r
/
A
cc
o
rd
&
Sa
t
i
sf
a
c
t
i
o
n
S
m
a
l
l
Bus
i
ness,
Subcon
t
r
ac
t
i
ng
/
M
BE
r
equ
i
r
e
m
en
t
s
P
r
o
m
pt Pay
and
Bond
i
ng
I
ssues
(
no
m
echan
i
c
’
s
li
en
r
i
gh
t
s)
O
ther
Iss
ues
Po
li
cy
and
Aud
i
t
Ri
gh
t
s
C
r
i
m
i
nal
and
Ci
v
i
l
E
x
posu
r
e
–
C
an
’
t
de
f
r
aud
t
he
G
ove
r
n
m
ent
States
ha
v
e
s
i
m
ilar
structures.Slide3
Th
e
Christian Doctrine –– It’s In
Th
ere
G
.
L
.
C
hristi
a
n
&
A
ssoc.
v.
U
n
it
e
d
S
t
a
tes
,
21
3
F
.
2
d
41
8
(
C
t.
C
l.
1963)
In
o
t
he
r
w
ord
s
–
regardles
s
o
f
w
he
t
he
r
o
r
no
t
a
claus
e
is
expres
s
o
r
insert
e
d
by
reference,
a
court ca
n
i
n
terpret
t
h
e
contract
as
if
a
ll
m
anda
tor
y
cl
auses
ar
e
present
eve
n
if notSlide4
The
C
hristian Doctrine: Examples of
Some
Mandatory Provisions for Prime Contractors
The
Bu
y
-A
m
eric
an
A
ct
–
FAR
52.225(1)-(4)
The
Pa
ym
ent
C
laus
e
–
FAR
52.232(1)-(7)
Ter
m
ination
for
D
efault
–
FAR
49.401;
52.249-10
Equal
O
pportunity
and
Affir
m
ati
v
e
A
ction
C
laus
es
–
FAR 52.222-26
The
M
iller
A
ct
D
a
v
i
s
-Ba
c
on
A
ct
C
hanges
C
laus
e
D
i
s
putes
C
laus
e
B
U
T
NO
T
the
Ter
m
ination
for
C
on
v
enien
c
e
C
laus
eSlide5
R
ec
ent Changes –Fair Pay and Safe Workpl
a
ces
E
.O. 13673 - Fair Pay and Safe WorkplacesFAR final rule; DOL guidance expected in 2016
E.
O
.
applies to
pri
m
e
contractors
and
s
ub
contractors
bidding
contracts
>$500,000
D
i
sclos
ure
require
m
ents
-
Potentially
burden
s
o
m
e
for
contractors
and
s
ub
contractors
Mandatory
d
isclosure
of
any
adm
i
n
istrative
action, j
udgment
or
dec
isi
on
for
vi
o
lati
on
of
listed
l
a
w
s
and
regulati
ons
for
the
previ
ous
3
years
L
ists
14
federal
statutes/regs,
incl
ud
i
ng
F
L
S
A
,
SC
A
,
DB
A
,
A
DA
,
A
DE
A
,
F
MOL
A
,
N
L
R
A
,
O
S
HA
,
E
.O.
11246
(
A
ffirmative
A
ction)
P
re-a
w
ard
representati
ons
and
certificati
ons
-
U
pdated every
6
months
duri
ng
performance
C
ontractors
a
lso
required
to
d
iscl
ose
on
beha
lf
of subcontractors
and
fl
o
w
-do
w
n
the
provisi
on
to subcontractorsSlide6
R
ec
ent Changes – Sick DaysE.O. 13706:
Si
ck
Da
ysEffective Jan. 1, 2017Applies to contra
cts
an
d
“c
on
tr
a
ct-
li
ke
in
str
u
m
en
ts”
t
hat
I
n
v
ol
ve
p
r
o
c
u
r
e
m
en
t
o
f
s
e
rv
i
c
e
s
of
c
on
str
u
ct
ion
A
re c
o
v
e
r
e
d
b
y t
h
e
SC
A
A
re f
o
r
c
on
c
e
ss
ions
A
re
wi
th t
h
e
f
ede
r
a
l
go
v
e
r
n
m
en
t,
c
on
c
e
rn f
ede
r
a
l
p
r
ope
rty
o
r
land
s,
an
d
a
re r
ela
t
e
d to
o
ff
e
r
in
g s
e
rv
i
c
e
s
f
o
r
f
ede
r
a
l
e
m
plo
y
ee
s,
t
hei
r
dependen
ts
o
r
t
h
e
gene
r
a
l
publi
c,
or
I
n
v
ol
ve
e
m
plo
y
ee
s
who
se
wage
s
a
re
go
v
e
r
ne
d
b
y
t
h
e
DBA
,
SCA
,
o
r
FLS
ASlide7
R
ec
ent Changes – Sick DaysE.O.
13706:
S
ick DaysRequires federal contractors and subcontractors to allow em
plo
y
ees
to
a
cc
rue
one
hour
of
paid
s
i
c
k
lea
v
e
per
30
w
ork
ed
(
m
u
st
allow
e
m
plo
y
ees
to
a
cc
rue
up
to
56
hours
per
y
ear)
E
m
plo
y
ees
c
an
u
s
e
s
i
c
k
da
y
s
for
any
per
s
onal
or
fa
m
ily health
i
ss
ue,
do
m
e
stic
v
iolence,
s
e
x
ual
a
ssault or stalking
i
ss
ues
(inc
ludes
related
c
oun
seling, court proc
eeding
s,
relocation)
M
u
st
allow
e
m
plo
y
ees
to
carry
a
cc
rued
s
i
c
k
lea
v
e
from
y
ear
to
y
ear
E
m
plo
y
ers
not
required
to
pay
out
unu
s
ed
s
i
c
k
lea
v
e
w
hen
e
m
plo
y
ee
lea
v
e
s,
but
m
u
st
reinstate
all
a
cc
rued hours
if
e
m
plo
y
ee
is re-hired
w
ithin
12
m
onths
of lea
v
ing
Potentially
burden
s
o
m
e
for
contractors
and
s
ub
contractorsSlide8
R
ec
ent Changes – LGBT Non- discrimination
A
m
end
ments to E.O. 11748Applies to contractors and
s
ub
c
on
tr
a
ct
o
rs
c
o
v
e
r
ed b
y
E
.O.
1174
8
an
d
11246
Upda
t
e
s
E
.O.
1124
6
to
e
x
t
en
d
p
r
o
t
e
ct
ion
s to
L
G
B
T
wo
rk
e
rs
S
ubstitutes
“se
x
,
se
x
ual
orientation,
gender
identity
or national
ori
g
in”
for
“sex
or
national
origin”
C
ontractor
may
not
d
iscri
m
inate
on
the
bas
is
of
se
x
ual orientation,
gender
identity
Con
tr
a
ct
o
rs s
houl
d
r
e
v
ie
w
t
hei
r
S
O
P
s
an
d
AA
PSlide9
R
ec
ent Changes – Pay TransparencyE
.
O
.
13665: Pay Transparen
cy
P
r
oh
i
b
i
ts
“
pa
y
s
e
cr
e
cy”
C
ont
r
acto
rs
an
d
s
ub
c
ont
r
acto
rs
m
a
y
not
“
d
isc
ha
r
g
e
or
in
an
y
other
m
anner
d
iscri
m
i
na
te
aga
i
nst an
y
e
m
p
l
o
y
e
e
or
app
lic
ant for e
m
p
l
o
y
m
ent
be
c
au
se
s
u
ch
e
m
p
l
o
y
e
e
has
i
nqu
ir
e
d
about, d
isc
u
ss
ed,
or
d
iscl
o
s
e
d
the
c
o
m
pen
s
at
i
o
n
of
th
e
e
m
p
l
o
y
e
e
or
app
lic
ant
or another
e
m
p
l
o
y
e
e
or
app
lic
ant”
D
oe
s
not
affect
w
r
ongfu
l
/unautho
riz
e
d
d
iscl
o
s
u
re
b
y
e
m
p
l
o
y
ee
s
w
ho
se
e
ss
ent
i
al
j
o
b
funct
i
ons
i
n
v
o
lve
a
cc
e
ssi
n
g
an
d
d
iscl
o
si
n
g
c
o
m
pen
s
at
i
on
i
nfo
r
m
at
i
o
n
in
vi
o
l
at
i
o
n
of
w
o
rk
p
l
a
ce
r
u
l
es
R
equ
ir
e
s
that
fede
r
al
c
ont
r
acto
rs
and
s
ub
c
ont
r
acto
rs
r
equ
ir
e
s
p
r
o
visi
o
n
e
x
p
l
a
i
n
i
n
g
th
is
po
licy
in
e
m
p
l
o
y
e
e
handboo
ks
an
d
m
anua
lsSlide10
S
upre
me Court’s decision in Universal Health Services, Inc.
v.
Escobar
Re
cognizes implied certification liability
E
m
pha
s
i
s
o
n
“m
ateriality”Resolves split amount the Circuit Courts
Recent Changes—False Claims Act
11Slide11
C
e
rtificationsSole Source Authority
R
ec
en
t Changes—WOSBs12Slide12
Internal Investi
g
ation
s
Involving Contractor Employees (Yates Memo)Pot
en
t
ia
l
penal
t
ie
s
f
or labor violation includes false claims liability (implied certi
fication), criminal fraudYate
s M
e
m
o
:
D
OJ
an
d OIG
I
n
v
e
st
iga
t
ion
s
ha
ve s
hi
ft
e
d fr
o
m
en
t
e
r
p
r
i
s
e
-c
en
tr
i
c
to
e
m
plo
y
ee
-c
en
tr
i
c
–
E
x
a
m
ple
:
c
o
r
po
r
a
t
ion
s
m
u
st
p
r
o
ff
e
r
t
h
e
na
m
es o
f
in
v
ol
v
e
d
indi
v
idu
a
l
s
to
ge
t
c
oope
r
a
t
io
n
cr
edi
t (
Ya
t
e
s
M
e
mo
Poin
t
1)
P
r
i
v
ileg
e
c
on
s
ide
r
a
t
ion
s
–
Upjoh
n
m
o
re
i
m
po
rt
ant
t
ha
n
e
v
er
W
eig
h
t
h
e
c
o
m
pan
y
’
s
in
t
e
r
e
st
i
n
c
oope
r
a
t
io
n
and di
sc
lo
s
u
re
again
st
t
h
e
e
m
plo
y
ee’
s
c
on
st
i
t
u
t
ional
r
igh
ts
i
n a cr
i
m
ina
l
m
a
tt
erSlide13
DCA
A
newsIncurred Cost Backlog still a
n
iss
ue
Forward Pricing audit timeliness still
laggin
g
at a
v
e
r
ag
e
8
5 days for FY 2015 (compared to 28 days in FY 2008)DCAA
preparing for major internal r
eo
r
gani
z
a
t
ion to be effective October 1, 2016The 7 largest Defense Contractors will be realigned into Corporate Audit Directorates with all audit offices for all divisions reporting up to a single Corporate Audit Director (SES) for each contractorNorthrop Grumman in Falls Church, VARaytheon, General Dynamics and BAE in Lowell, MABoeing and Honeywell in St. Louis, MOLockheed Martin in Ft. Worth, TXL-3 will have a similar structure but will be aligned to the Field DetachmentAll other DCAA branch offices and suboffices will be realigned to one of three new regions (East, Central, Western)
DCAA/DCMA Hot Topics
14Slide14
N
ew
DCAA Regional Structure15Slide15
DCAA
/
DCMA Hot Topics16DCAA News- FY 2017 priorities will be:
C
on
t
inued reduction of incurred cost backlogBusiness sys
t
em
aud
i
t
s
f
or h
i
gh risk locationsReal time auditsMore TINA
audits (Center of Excellence for
T
I
N
A
aud
its was established in FY 2015)Continued small business outreach via NDIA and SBTCSensitive audit areas with continued focus:CompensationMRD 16-PSP-005(R) regarding use of blended ratesDCAA requesting real time systems accessShort response times for data requests and formal report responsesInternal audit reportsIncreased burden on contractors to support detailed walkthroughs of proposalsDCAA is looking for any reason to say proposals are inadequate and get them off their plate!Slide16
DC
MA
NewsIncurred CostWorking
wi
th DCA
A
to disposition more multi year auditsUtiliz
in
g
Q
ui
ck
Clo
s
eou
t
Procedures where applicableEstablished a Contract Closeout
CenterEntering into “burn down” plans
wi
th c
on
tr
a
ctorsBusiness SystemsCoordinating with CPSR teams and DCAA for consistent approachSignificant Cost Areas Under ScrutinyCompensationUnsupported costsReductions to base costs impacting forward pricing ratesDCAA/DCMA Hot Topics17Slide17
DC
MA
NewsCommercial AcquisitionsSupporting
DFARS
Case 2016-D006, Procurement of Commercial Ite
ms
–
D
raft
P
ropose
d
RuleStanding up six Commercial Item Centers of Excell
ence, organized geographically and aligned to various m
arket
sectors
A
gree
m
ents with individual contractors on the type of information needed to support Commerciality Determinations and Price reasonableness in a format already in use by the contractorDCAA/DCMA Hot Topics18Slide18
QU
ES
TIONS?