Federal Compass | Argy, Wiltse & Robinson, P.C.

TAA Thresholds Rise from Weakened Dollar

The U.S. Trade Representative (“USTR”) has increased the dollar thresholds at which the Buy American Act restriction is waived for the supply of goods, services, or construction material from “designated countries”. The USTR adjusts the thresholds biennially, since the GPA thresholds are expressed in “Special Drawing Rights”. The U.S. dollar continued to weaken in 2009 and has resulted in the third straight increase of the thresholds to $203,000 for goods and services, and $7,804,000 for construction contracts. The revised thresholds became effective January 1, 2010.

Final Rule: IRS Criteria or FAS 106 Guidelines are Permitted for the Treatment of PRB Costs

The Councils have decided on a final ruling, which amends the Federal Acquisition Regulation to permit contractors to treat accrued Post Retirement Benefit (PRB) costs using either the criteria stipulated in the Internal Revenue Code (IRC) 419 or the guidelines provided in Financial Accounting Standard (FAS) 106.

Final Rule: The Federal Acquisition Regulation Amends the Travel Cost Principle

The FAR Councils agreed to a final ruling amending the Federal Acquisition Regulation (FAR) to revise the cost principle associated with airfare costs. The objective of this ruling is to guarantee that contractors are consistently limiting allowable costs pertaining to airfare. Currently, the limitation is being interpreted inconsistently, either as “lowest coach fare available to the contractor” or “lowest coach fare available to the general public”. The FAR councils are striving for the principle to read as “lowest priced airfare available to the contractor.”

Final Rule: DOD Adopts Whistleblower Protections Policies for Contractor Employees

The Department of Defense has amended the Defense Federal Acquisition Regulation Supplement in order to implement and reflect Section 846 of the National Defense Authorization Act for Fiscal Year 2008 and Section 842 of the National Defense Authorization Act for Fiscal Year 2009. This amendment addresses the protection of contractor employees when disclosing information to Government officials regarding violation of law related to DOD contracts, defective contract management, and danger to public health or safety. This ruling’s effective date is November 19, 2009.

Final Rule: DoD Adopts Rule for Officials Seeking Employment With Defense Contractors

An interim rule amending the Defense Federal Acquisition Regulation Supplement to implement section 847 of the National Defense Authorization Act for FY 2008 has been adopted as final by the Department of Defense. The rule requires that a DoD official who has participated personally and substantially in a DoD acquisition exceeding $10 million or who has held a key acquisition position, must request a written opinion from a DoD ethics counselor before accepting compensation from a DoD contractor within two years after leaving DoD service. This ruling’s effective date was November 19, 2009.

Final Rule: Amendment to DoD Pilot Program

The Department of Defense adopted a rule to implement section 824 of the National Defense Authorization Act for Fiscal Year 2009. This rule amends the DoD Pilot Program for transition to follow-on contracting after use of other transaction agreements, establishes a new program expiration date, and adds items developed under research projects to the types of items to which the program applies. This rule will make it easier for non-traditional defense contractors to transition from the use of Other Transaction Agreements to standards contracts. This ruling’s effective date was November 19, 2009.

Final Rule: Limit to the Length of Contracts Awarded Noncompetitively

An amendment to the Federal Acquisition Regulations was issued implementing Section 862 of the Duncan Hunter National Defense Authorization Act. The Civilian Agency Acquisition Council and the Defense Federal Acquisition Regulations Council have issued a final rule amending the FAR. The rule limits the period of performance of contracts awarded noncompetitively under unusual and compelling urgency circumstances to the minimum contract period necessary to meet the requirements, and no longer than one year, unless the head of the agency determines that exceptional circumstances apply. This ruling’s effective date was October 14, 2009.

Final Rule: Rule Adopted to Allow GAO to Interview Current Contractor Employees During Audit

Section 871 of the Duncan Hunter National Defense Authorization Act was implemented as a final rule without change for FY 2009 by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council. Section 871 allows the Comptroller General of the Government Accountability Office to interview current employees regarding transactions being examined during an audit of contracting records. This ruling’s effective date is October 14, 2009.

Final Rule: GSA Overhauls GSAR Requirements for Sealed Bidding

Spurred by the GSA Acquisition Manual (GSAM) Rewrite Initiative, GSA amended GSAR Part 514 dealing with requirements for sealed bidding, which became effective September 17, 2009. The GSAM Rewrite Initiative’s objective is to maintain consistency with the Federal Acquisition Regulation. This amendment strives to introduce valuable acquisition procedures to contractors, bidders, and GSA contracting personnel regarding aspects of contractual relationships.

Winter 2010 Regulatory Updates