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2018 Procurement Review--Statutes, Regulations, Executive Orders



                           


Contents

                           

    Statutes   

John S. McCain National Defense Authorization Act, 2019

Consolidated Appropriations Act, 2018

 

Executive Orders and Related Publications

    

Regulations

Federal Acquisition Regulation (FAR)

     Federal Acquisition Circulars (FAC)  

FAC 2005-98

Federal Acquisition Circular (FAC) 2005-98 included the following four items:

FAR Case 2017-007: A final rule amended the FAR (i) to implement a section of the National Defense Authorization Act for Fiscal Year 2017 to raise the threshold for task and delivery-order protests from $10 million to $25 million (applicable to DoD, NASA, and the Coast Guard) and (ii) to repeal the sunset date for the authority to protest the placement of an order (for the other civilian agencies), which was also previously repealed by the GAO Civilian Task and Delivery Order Protest Authority Act of 2016. After the change takes effect, FAR 16.505(a)(10) will read as follows:

No protest under subpart 33.1 is authorized in connection with the issuance or proposed issuance of an order under a task-order contract or delivery-order contract, except— (A) A protest on the grounds that the order increases the scope, period, or maximum value of the contract; or (B)(1) For agencies other than DoD, NASA, and the Coast Guard, a protest of an order valued in excess of $10 million (41 U.S.C. 4106(f)); or (2) For DoD, NASA, or the Coast Guard, a protest of an order valued in excess of $25 million (10 U.S.C. 2304c(e)).

FAR Case 2017-008: A final rule amended the FAR to reflect sections of the National Defense Authorization Act for Fiscal Year 2017, which amend section 15(k) of the Small Business Act to provide additional duties for agencies’ Office of Small and Disadvantaged Business Utilization (OSDBU), and for DoD’s Office of Small Business Programs (OSBP).

FAR Case 2017-004: A final rule amended the FAR to adjust for inflation the rate of liquidated damages assessed for violations of the overtime provisions of the Contract Work Hours and Safety Standards Act.

FAR Case 2015-039: A final rule amended the FAR to raise the dollar threshold requirement for the audit of prime contract settlement proposals and subcontract settlements from $100,000 to align with the threshold for obtaining certified cost or pricing data.

FAC 2005-99

FAC 2005-99 included the following two items:

FAR Case 2018-010: An interim rule amended the FAR to implement section 1634 of Division A of the National Defense Authorization Act (NDAA) for  FY 2018 (Pub. L. 115–91), which prohibits the use of hardware, software, and services of Kaspersky Lab and its related entities by the Federal Government on or after October 1, 2018.

FAR Case 2017-018: An interim rule amended the FAR to implement another section of the NDAA for Fiscal Year 2017 that addresses measures against persons involved in activities that violate arms control treaties or agreements with the United States, specifically by amending FAR part 9 ("Contractor Qualifications") and adding a contract provision at FAR 52.209–13.

FAC 2005-100

FAC 2005-100 included the following two items plus technical amendments:

FAR Case 2017-001: A final rule adopted, without change, the prior interim rule amending the FAR to implement (i) E.O. 13706 establishing paid sick leave for federal contractors and (ii) a final rule issued by the DOL.

FAR Case 2016-007: A final rule adopted, without change, the prior interim rule amending the FAR to implement (i) E.O. 13665 (Non-retaliation for Disclosure of Compensation Information) and (ii) a final rule issued by the DOL.

The FAC also included technical amendments that make quite a a few editorial changes to the FAR, including updated web links.
 

FAC 2005-101

FAC 2005-101 included the following two items:

FAR Case 2015-005: A final rule amended the FAR to update the instructions for, and clarify the timing of, registering in SAM.

FAR Case 2018-009: A final rule amended the FAR to implement section 885 of the National Defense Authorization Act for Fiscal Year 2018, which provides an exception for business operations conducted by a contractor while performing under a government contract from the requirement to accept and dispense $1 coins.

FAC 2019-01

FAR Case 2015-017: Effective January 22, 2019, a final rule amends the FAR to add a definition of "recruitment fees" in FAR 22.1702 in order to further implement the FAR policy on combating trafficking in persons.

      Other Proposed FAR Revisions

FAR Case 2017 -006: A proposed rule would amend FAR 15.403-1(c)(1) to provide guidance to the affected agencies (DoD, NASA, and the Coast Guard) concerning a separate standard for "adequate price competition" in their competitions in order to be consistent with the requirements of section 822 of the National Defense Authorization Act for FY 2017, which limits the exception for price based on adequate price competition for those agencies to circumstances in which there is adequate competition that results in at least two or more responsive and viable competing bids.

FAR Case 2017-009: A proposed rule would amend the FAR to  implement sections of the National Defense Authorization Act for FY 2017, specifically: (i) to expand special emergency procurement authorities for acquisitions of supplies or services that facilitate defense against or recovery from cyber attack; (ii) to provide international disaster assistance under the Foreign Assistance Act of 1961; or (iii) to support the response to an emergency or major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

FAR Case 2017-017: A proposed rule would amend FAR subpart 7.4 by: (i)  adding language to the scope of the subpart to clarify that the term ‘‘lease," as used in the subpart, applies to both the lease and rental of equipment, and to identify some general factors that may vary when leasing or renting equipment; and (ii) adding a reference to a GSA website which provides information that could assist the Contracting Officer in making equipment lease or purchase decisions, and updating the name of the GSA office to contact when an agency requests assistance with the lease versus purchase analysis decision. In addition, weblinks to OMB guidance for lease-purchase analysis are included.

FAR Case 2017-020: A proposed rule would amend the FAR to implement a new clause that provides the agency task- and delivery-order ombudsman's responsibilities and contact information for use in multiple-award IDIQ contracts. Comments are due by December 31.

FAR Case 2016-011: A proposed rule would amend the FAR to implement the final rule published by the SBA implementing section 1651 of the National Defense Authorization Act for FY 2013, which revised and standardized the limitations on subcontracting, including the nonmanufacturer rule, that apply to small business concerns under FAR part 19 procurements. Comments are due by February 4, 2019.

Department of Defense FAR Supplement (DFARS)

Final Rules

DFARS Case 2016-D006: DoD published a final rule to implement sections of the  National Defense Authorization Acts for Fiscal Years 2013, 2016, and 2018 relating to acquisitions of commercial items, including guidance on analyzing cost and price reasonableness for such acquisitions.

DFARS Case 2018-D004: Another final rule designated North Korea as a state sponsor of terrorism.

DFARS Case 2016-D011: DoD amended the DFARS to to implement section 861 of the National Defense Authorization Act (NDAA) for FY 2016, which provides amendments to the DoD Pilot Mentor Protégé Program, inter alia: (i) to establish new reporting requirements for mentor firms that will provide information to DoD’s Office of Small Business Programs to support decisions regarding continuation of particular mentor protégé agreements; (ii) to add new (a) eligibility criteria; (b) limitations on a protégé firm’s participation in the Program; and (c) elements to mentor-protégé agreements; (iii) to extend the Program for three additional years; and (iv) to amend requirements for business development assistance provided by a mentor firm and for reimbursement of fees assessed by the mentor firm.

DFARS Case 2016-D015: A final rule amended the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2016, clarifying the competition requirements for the acquisition of religious-related services contracts on a United States military installation.

DFARS Case 2017-D004: A final rule amended the DFARS to remove outdated coverage of consolidation of contract requirements that implemented 10 U.S.C. 2382, which was repealed by section 1671 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112–239).

DFARS Case 2017-D033: A final rule amended the DFARS to relocate the definition of information technology within the DFARS from DFARS 202.101 to DFARS 239.7301.

DFARS Case 2017-D039: A final rule amended the DFARS to remove limiting language related to educational service agreements in order to allow DoD to make agreements that permit payment for Masters of Laws degrees and other legal training programs, in accordance with applicable law, regulation, and policy.

DFARS Case 2017-D032: A final rule amended the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2017 that prohibits use of funds for certain programs and projects of the Department of Defense in Afghanistan that cannot be safely accessed by United States Government personnel.

DFARS Case 2015-D013: A final rule amended the DFARS to implement sections of the National Defense Authorization Acts for Fiscal Years 2015, 2016, and 2017 to provide revisions to the Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans.

DFARS Case 2015-D030: A final rule amended the DFARS to state that, in the interest of promoting voluntary contractor disclosure of defective pricing identified by the contractor after contract award, DoD contracting officers have discretion to request a limited-scope or full-scope audit, as appropriate for the circumstances.

DFARS Case 2018-D005: A final rule amended the DFARS to provide a statement of purpose at section 201.101, as required by the National Defense Authorization Act for Fiscal Year 2018.

DFARS Case 2016-D013: A final rule amended the DFARS to make contractor and subcontractors subject to approval (as well as review and audit) by appropriate DoD officials when identifying a contractor-approved supplier of electronic parts.

DFARS Case 2018-D024: A final rule amended the DFARS: (i) to delegate to the head of the contracting activity the decision authorities provided to the head of the agency by sections of the National Defense Authorization Act ("NDAA") for Fiscal Year 2018 that provide new special emergency procurement authorities; and (ii) to make conforming changes to nonstatutory emergency acquisition flexibilities relating to item-unique identification, receipt of only one offer, and limitations on time-and-materials contracts.

DFARS Case 2017-D027: A final rule amended the DFARS to implement sections of the NDAA for Fiscal Year 2017 that increase the micro-purchase threshold DoD procurements generally to $5,000 and to $10,000 for purposes of DoD basic research programs and for the activities of the DoD science and technology reinvention laboratories.

DFARS Case 2018-D026: A final rule amended the DFARS to clarify the agency that conducts the background check procedures that are required for contractors who perform work on U.S.- flag vessels under DoD contracts for ocean transportation services.

DFARS Case 2018-D002: A final rule amended the DFARS to remove DFARS 252.222-7001 because it is duplicative of existing FAR 52.207-3, which requires a contractor to give government personnel the right of first refusal for employment openings in certain situations.

DFARS Case 2017-D044: A final rule amended the DFARS to remove DFARS 252.204-7004 because it is duplicative of FAR 52.204-7, which requires a vendor to enter CAGE code information into a governmentwide database prior to award of any contract or agreement.

DFARS Case 2018-D006: A final rule amended the DFARS to implement a section of the NDAA for Fiscal Year 2018 that established October 1 as a  sunset date for restrictions on acquisition of chemical weapons antidote contained in automatic injectors, or the components of such injectors.

DFARS Case 2017-D045: A final rule amended the DFARS to remove DFARS 252.204-7011, which provided guidelines to offerors when proposing an alternative line item structure in response to a solicitation, because it is duplicative of FAR 52.204-22.

DFARS Case 2018-D003: A final rule amended the DFARS to remove DFARS 252.222-7007, Representations Regarding Combating Trafficking in Persons, and associated provisions because they are duplicative of federal statutes and FAR 52.222-50.

DFARS Case 2015-D028: A final rule amended the DFARS: (i) to implement section 812 of the National Defense Authorization Act (NDAA) for FY 2016 related to the costs associated with indirect offsets under FMS agreements; and (ii) to expand on the prior interim rule guidance related to FMS offset costs.

DFARS Case 2018-D032: A final rule amended the DFARS to remove the DFARS clause 252.215–7000 ("Pricing Adjustments") as unnecessarily duplicative of language in various FAR "cost or pricing data" clauses.

DFARS Case 2018-D030: A final rule amended the DFARS to remove DFARS clause 252.216–7010 ("Requirements"--Alternate) as unnecessarily duplicative of FAR clause 52.216–21 ("Requirements").

DFARS Case 2015-D024: A final rule amended the DFARS (including DFARS 215.404-71-2 and -3) to provide a more transparent means of documenting the impact of costs incurred during the undefinitized period of an undefinitized contract action on allowable profit.

DFARS Case 2018-D042: A final rule amended the DFARS to remove the DFARS clause 252.247– 7006 ("Removal of Contractor’s Employees") and the associated clause prescription at DFARS 247.270–4 because the information in the clause is more appropriate for a Statement of Work than for a contract clause.

DFARS Case 2017-D041: A final rule amended the DFARS to remove a requirement at DFARS 231.205–18(c)(iii)(C)(4) for major contractors to engage in and document a technical interchange with the Government prior to generating independent research and development costs.

DoD removed the following four contract clauses (and the associated clause prescriptions) from the DFARS because they are outdated or no longer necessary: (i) DFARS 252.247-7020 ("Additional Services"); (ii) DFARS 252.216-7005 ("Award Fee"); (iii) DFARS 252.247-7004 ("Indefinite Quantities--Fixed Charges"); and (iv) DFARS 252.247-7005 ("Indefinite Quantities--No Fixed Charges").

DFARS Case  2017-D016: A final rule amended the DFARS to implement section 1823 and paragraph (b) of section 1813 of the National Defense Authorization Act  for FY 2017, which revise the definition and requirements associated with affiliation between mentor firms and their protégé firms and add new types of assistance for mentors to provide to their protégés.

DFARS Case  2018-D033: A final rule amended the DFARS to remove both DFARS 252.211–7000 ("Acquisition Streamlining") and the associated clause prescription at DFARS 211.002–70 as unnecessary.

DFARS Case  2018-D041: A final rule amended the DFARS to remove DFARS 252.236–7009 ("Option for Supervision and Inspection Services"), as well as the associated clause prescription at DFARS 236.609–70(a)(1), and to revise a cross reference in the introductory text to DFARS clause 252.236–7011, all of which are no longer necessary.

DFARS Case  2018-D036: A final rule amended the DFARS to remove DFARS 252.228–7004 ("Bonds or Other Security") and the associated clause prescription at DFARS 228.170 as unnecessary.

DFARS Case  2018-D052: A final rule amended the DFARS to remove an obsolete requirement from the clause at DFARS 252.219–7009 ("Section 8(a) Direct Award"), specifically the requirements that 8(a) contractors obtain written approval from the SBA and the contracting officer prior to subcontracting the performance of any contract requirements, because this requirement no longer exists in SBA’s own 8(a) Business Development Program regulations.

DFARS Case 2018-D073: A final rule amended the DFARS to implement a section of the National Defense Authorization Act for FY 2019 that removes the requirement to make a best procurement approach determination in order to use an interagency acquisition.

DFARS Case 2018-D025: A final rule amended the DFARS to modify DFARS clause 252.217–7001 ("Surge Option") by replacing the term "Production Surge Plan (DI– MGMT–80969)" with "Capabilities Analysis Plan (CAP)" and by adding text to permit the option increase of supplies or services called for under the clause to be expressed as a specific number. The associated clause prescription at DFARS 217.208–70(b) is amended to reflect that the option increase of supplies or services may also be expressed as a specific number.

DFARS Case 2018-D007: A final rule amended the DFARS to implement a section of the National Defense Authorization Act for FY 2018 that repeals the Fiscal Year 2015 restrictions on the source of photovoltaic devices in contracts awarded by DoD that result in DoD ownership of photovoltaic devices by means other than DoD purchase of the photovoltaic devices as end products.

DFARS Case 2018-D060: A final rule amended the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2019 that modifies the limitations on awarding single-source task or delivery order contracts exceeding $112 million.

DFARS Case 2017-D011: A final rule amended the DFARS to implement sections of the National Defense Authorization Act for Fiscal Year 2017 to apply domestic source requirements to acquisitions at or below the simplified acquisition threshold when acquiring athletic footwear to be furnished to enlisted members of the Armed Forces upon their initial entry into the Armed Forces and to add Australia and the United Kingdom to the definition of the "National Technology and Industrial Base."

DFARS Case 2017-D005: A final rule amended the DFARS to change the entity to which contractors submit Summary Subcontract Reports in the Electronic Subcontracting Reporting System (eSRS) and to change the entity that acknowledges receipt of, or rejects, the reports in eSRS.

DFARS Case 2016-D032: A final rule amended the DFARS to clarify policies and procedures for submission of payment requests and receiving reports in electronic form.

DFARS Case 2018-D020: An interim rule amended the DFARS to implement sections of the National Defense Authorization Acts for Fiscal Years 2017 and 2018, which: (i) impose additional prohibitions with regard to the acquisition of certain foreign commercial satellite services, such as cybersecurity risk and source of satellites and launch vehicles used to provide the foreign commercial satellite services and expand the definition of "covered foreign country" to include Russia; and (ii) prohibit the purchase of items from a Communist Chinese military company if those items meet the definition of goods and services controlled as munitions items when moved to the CCL List of the Department of Commerce's EAR. Comments are due by February 19, 2019.

Proposed Rules

DFARS Case 2018-D012: A proposed rule would amend the DFARS to implement sections of the NDAA for Fiscal Years 2017 and 2018 that permit expedited closeout of certain contracts entered into on a date that is at least 17 fiscal years before the current fiscal year.

DFARS Case 2016-D032: A proposed rule would amend the DFARS (including language in various provisions in DFARS parts 232, 246, 252, and Appendix F) to clarify the policies and procedures for the submission of payment requests and receiving reports in electronic form.

DFARS Case  2017-D010: A proposed rule would amend the DFARS to implement section 874 of the NDAA for FY 2017 that addresses the inapplicability of certain laws and regulations to the acquisition of commercial items, including commercially available off-the-shelf items.

DFARS Case  2018-D025: A proposed rule would amend the DFARS to revise DFARS clause 252.217-7001 ("Surge Option") to reflect current terminology and industry practices, pursuant to action taken by the Regulatory Reform Task Force.

DFARS Case 2017-D009: A proposed rule would amend the DFARS, principally DFARS 215.271-3 and related solicitation and contract clauses, to partially implement a section of the NDAA for FY 2017 to address the requirement for certification of cost or pricing data and potential submission of additional certified cost or pricing data when only one offer is received in response to a competitive solicitation.

DFARS Case 2017-D005: A proposed rule would amend the DFARS to clarify the entity to which contractors submit Summary Subcontract Reports in the Electronic Subcontracting Reporting System (eSRS) and to clarify the entity that acknowledges receipt of, or rejects, the reports in eSRS.

DFARS Case 2017-D014: A proposed rule would revise DFARS 211.107(b) to require the use of FAR provision 52.211–7 ("Alternatives to Government Unique Standards"), in DoD solicitations and contracts that include military or government-unique specifications and standards. The proposed change is designed to implement section 875(c) of the NDAA for FY 2017, which requires DoD to revise the DFARS to encourage contractors to propose commercial or non-Government standards and industry-wide practices that meet the intent of military specifications and standards.

DFARS Case 2017-D034: A proposed rule would amend the DFARS to implement the requirement for contractors to complete Level I antiterrorism awareness training.

DFARS Case 2018-D011: A proposed rule would amend the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2018 that allows for more than five offerors on solicitations issued using two-phase design-build selection procedures for indefinite-delivery, indefinite-quantity contracts that exceed $4 million.

DFARS Case 2018-D028: A proposed rule would modify DFARS DFARS clause 252.247–7023 ("Transportation of Supplies By Sea") to include the instructions currently specified in DFARS clause 252.247–7024 ("Notification of Supplies By Sea"), which will result in the latter clause being removed as unnecessary.

DFARS Case 2017-D011: A proposed rule would amend the DFARS (i) to implement sections of the National Defense Authorization Act for Fiscal Year 2017 to apply domestic source requirements to acquisitions at or below the simplified acquisition threshold when acquiring athletic footwear to be furnished to enlisted members of the Armed Forces upon their initial entry into the Armed Forces and (ii) to add Australia and the United Kingdom to the definition of the "National Technology and Industrial Base."

DFARS Case 2018-D007: A proposed rule would amend the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2018 that repeals the Fiscal Year 2015 restrictions on the source of photovoltaic devices in contracts awarded by DoD that result in DoD ownership of photovoltaic devices by means other than DoD purchase of the photovoltaic devices as end products.

DFARS Case 2017-D019: DoD initially proposed to (i) implement a section of the National Defense Authorization Act for Fiscal Year 2017, which addresses the preference for performance-based payments and (ii) streamline the performance-based payment process. The proposed rule would also amend the DFARS to revise progress payments and performance-based payments policies for DoD contracts in order to increase its business effectiveness and efficiency as well as to provide an opportunity for both small and other than small entities to qualify for increased customary progress payment rates and maximum performance-based payment rates based on whether the offeror/contractor has met certain performance criteria. More specifically, the proposed rule would, inter alia, (i) delete the current regulations relating to performance-based payments at DFARS subpart 232.10 and the associated clauses at DFARS 252.232– 7012 ("Performance-Based Payments— Whole Contract Basis") and 252.232– 701 ("Performance-Based Payments— Deliverable Item Basis") and (ii) remove the requirement to negotiate consideration due the Government for providing the contractor with the improved cash flow when utilizing performance-based payments. Subsequently, DoD withdrew the proposed rule.

DFARS Case  2018-D021: A proposed rule would amend the DFARS to  implement sections of the National Defense Authorization Act for Fiscal Year 2018 by expanding the definition of other competitive procedures and extending the term and increasing the dollar value under the contract authority for advanced development of initial or additional prototype units.

DFARS Case 2017-D040: A proposed rule would amend the DFARS to  implement a section of the National Defense Authorization Act for Fiscal Year 2017 that requires the use of brand name or equivalent descriptions or proprietary specifications or standards in solicitations to be justified and approved.

DFARS Case 2017-D016: A proposed rule would amend the DFARS rules regarding the DoD's Pilot Mentor-Protégé Program: (i) to revise the definition and requirements associated with affiliation between mentor firms and their protege ́ firms; and (ii) to add new types of assistance for mentor firms to provide to their protege ́ firms.

DFARS Case 2018-D010: A proposed rule would amend the DFARS to implement sections of the National Defense Authorization Acts for FY 2017 and 2018 that establish limitations and prohibitions on the use of the lowest-price technically-acceptable source selection process. Comments are due by  February 4, 2019.

DFARS Case 2018-D057: A proposed rule would amend the DFARS to implement a section of the National Defense Authorization Act for FY 2019 regarding set-asides for architect-engineer and construction design contracts, specifically by: (i) deleting paragraph (2) at DFARS 219.502–1, which prohibits small business set-asides of acquisitions for architect-engineer services for military construction or family housing projects valued at $400,000 or more; (ii) combining the remaining paragraphs into a single unnumbered paragraph; and (iii) revising the dollar value at DFARS 219.502–2, paragraph (a)(iii) (which requires acquisitions for architect-engineer services for military construction or family housing projects to be set aside for small business below a certain dollar value) from $400,000 to $1,000,000.  Comments are due by  February 4, 2019.

 

Other Agencies 

Bureau of Industry and Security (Department of Commerce)

The Bureau of Industry and Security (BIS) issued a final rule revising the Commerce Control List (CCL), as well as corresponding parts of the Export Administration Regulations (EAR), to implement changes made to the Wassenaar Arrangement (WA) List of Dual-Use Goods and Technologies maintained and agreed to by the governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies at the December 2017 WA Plenary meeting, in order to harmonize the CCL with the agreements reached at that meeting by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL.

DHS

The Department of Homeland Security proposed to remove HSAR clause 3052.219–70 as duplicative of FAR 52.219–9 (Small Business Subcontracting Plan). Subsequently, a final rule to this effect was published, effective January 29, 2019.

DOL

The DOL issued a final rule implementing E.O. 13838, which exempts federal contracts related to seasonal recreational services or seasonal recreational equipment rental from the minimum wage requirements of E.O. 13658.

The DOL issued a direct final rule rescinding the outdated regulations implementing the nondiscrimination and equal opportunity provisions of the Job Training Partnership Act of 1982 because that statute was subsequently repealed and replaced with the Workforce Investment Act. The rule will become effective November 26 unless the Department receives significant adverse comments by October 26.

EPA

Effective December 12, unless the agency receives adverse comments by October 15, the EPA is revising its acquisition regulation (the EPAAR): (i) to add language to EPAAR § 1506.302–5(b)(1) clarifying that the Contracting Officer need not provide any written justification under FAR § 8.405–6 or 13.501 for use of other than full and open competition when acquiring expert services under the authority of section 109(e) of the Superfund Amendments and Reauthorization Act of 1986 (SARA); (2) to revise EPAAR § 1552.232–70 to add information on circumstances that may require obtaining subcontractor costs, to make minor administrative changes, and to incorporate invoice preparation instructions; and (3) to  revise EPAAR § 1552.235–79 to expand circumstances in which the Contractor’s confidential business information may be released.

The EPA proposed to amend the EPAAR to add a contract clause with requirements for scientific integrity for inclusion in solicitations and contracts when the contractor may be required to perform, communicate, or supervise scientific activities or use scientific information to perform advisory and assistance services.

The EPA proposed to amend its acquisition regulations (the EPAAR) by revising its "Submission of Invoices" clause to add electronic invoicing requirements in recognition of the fact that in 2019 the EPA will begin using the Invoice Processing Platform (IPP), which is a secure web-based service provided by the U.S. Treasury that efficiently manages government invoicing. Comments are due by February 19, 2019.

General Services Administration (GSA)

GSAR Case 2015-G512: GSA is amending the General Services Administration Acquisition Regulation (GSAR) to address common commercial supplier agreement terms that are inconsistent with or create ambiguity with federal Law, e.g., terms that would call for dispute resolution inconsistent with the CDA and terms that would violate the Anti-Deficiency Act.

GSAR Case 2017-G503: Effective January 14, 2019 (unless the GSA receives significant adverse comments by December 14), the GSA is amending its aquisition regulation (GSAR) to remove text in  GSAR 509.105-1(b) that duplicates language already in FAR 9.105(b) providing guidance for obtaining information from government sources to make responsibility determinations for potential government contractors.

GSAR Case 2015-G506: A proposed rule would amend  the General Services Administration Acquisition Regulation (GSAR) to adopt an additional project delivery method for construction projects: construction manager as constructor ("CMc"). Comments are due by January 7, 2019.

The GSA proposed quite a few revisions to the rules of procedure for handling CDA cases at the CBCA. Effective September 17, the CBCA is revising its rules of procedure: (i) to establish a preference for electronic filing, (ii) to increase conformity between the Board’s rules and the Federal Rules of Civil Procedure, (iii) to streamline the wording of the Board’s rules, and (iv) to clarify current rules and practices. In addition, the time for filing is amended from 4:30 p.m. to midnight Eastern Time, and the stated monetary limitations for electing the accelerated and small claims procedures are deleted and replaced with references to the requirements stated in the Contract Disputes Act.

Government Accountability Office (GAO)

The GAO published a final rule establishing its new mandatory electronic filing and document dissemination system for GAO bid protests, including a new, required $350 filing fee. The rule also incorporates other significant revisions to the GAO's bid protest regulations, including, among many others, clarifications of: (i) the time for filing protests if the basis for a protest of a solicitation impropriety becomes known when no closing time has been established or when no further solicitation submissions are anticipated; (ii) when the agency is required to respond to a protester's request for documents; (iii) the ability of a party to request relevant documents not in the agency's possession;  and (iv) the generation and handling of protected and redacted documents. You can find GAO tutorials for how to use the new system here.

NASA 

NASA amended its FAR Supplement (NFS) to implement revisions to the voucher and invoice submittal and payment process in order to transition to an electronic invoicing system

OFPP

The OFPP's CAS Board issued a final rule revising the language of the exemption from CAS requirements for contracts or subcontracts for the acquisition of commercial items, which is located at 48 C.F.R. 9903-201.1(b)(6) (the "b(6) exemption") in order to harmonize the description of contracts in that regulation with the list of the types of contracts in FAR 12.207 that are authorized for use in the acquisition of commercial items and, thus, to eliminate inconsistencies between the two regulations.

Small Business Administration (SBA)

The SBA granted a class waiver of the Nonmanufacturer Rule for Positive Airway Pressure Devices and Supplies Manufacturing, an industry made up of establishments primarily engaged in manufacturing CPAP devices  and other products intended to treat sleep apnea.

In accordance with sections 1832 and 1833 of the National Defense Authorization Act for Fiscal Year 2017, the SBA amended the rules of practice of its OHA to implement (i) procedures for protests of eligibility for inclusion in the VA's Center for Verification and Evaluation (CVE) database and (ii) procedures for appeals of denials and cancellations of inclusion in the CVE database.

Tthe SBA amended its regulations, inter alia: (i) to comply with a provision of the National Defense Authorization Act of 2018 that amended the Small Business Act by replacing fixed dollar amount thresholds with references to the micro-purchase and simplified acquisition thresholds; (ii) to update the sole-source dollar amounts for the SDVO and HUBZone small business regulations; and (iii) to allow indirect ownership by United States citizens in the HUBZone program in order to more accurately align the regulations with the underlying statutory authority.

Tthe SBA amended its regulations to implement provisions of the National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017), which placed the responsibility on the SBA to define ownership and control for purposes of the VA's determination of a firm's status as a Veteran-Owned  (VO) or Service-Disabled Veteran-Owned (SDVO) Small Business Concern in its verification and Vets First Contracting Program procurements, and all other government acquisitions which require self-certification. The new rules also implement the parts of the legislative which provide that in certain circumstances a firm can qualify as VO or SDVO small business when there is a surviving spouse or an employee stock ownership plan (ESOP).

The SBA proposed a comprehensive set of changes to its regulations governing the HUBZone Program to make it easier for small business concerns to understand and comply with the program’s requirements and to make the HUBZone program a more attractive avenue for procuring agencies.

The SBA proposed to amend its regulations to implement several provisions of the National Defense Authorization Acts of 2016 and 2017 and the Recovery Improvements for Small Entities After Disaster Act of 2015 (RISE Act). The proposed rule would: (i) clarify that contracting officers have the authority to request information in connection with a contractor’s compliance with applicable limitations on subcontracting clauses; (ii) provide exclusions for purposes of compliance with the limitations on subcontracting for certain contracts performed outside of the United States, environmental remediation contracts, and information technology service acquisitions that require substantial cloud computing; (iii) require a prime contractor with a commercial subcontracting plan to include indirect costs in its subcontracting goals; (iv) establish that failure to provide timely subcontracting reports may constitute a material breach of the contract; (v) clarify the requirements for size and status recertification; and (vi) limit the scope of Procurement Center Representative reviews of Department of Defense acquisitions performed outside of the United States and its territories. The proposed rule would also authorize agencies to receive double credit for achieving small business goals as announced in SBA’s scorecard for local area small business set asides in connection with a disaster. Finally, SBA is proposing to remove the kit assembler exception to the non-manufacturer rule. Comments are due by February 4, 2019.

The SBA revised its white paper explaining how it determines small business size standards.

Transportation

In an advance notice of proposed rulemaking, the DOT's Federal Highway Administration (FHWA) announced that the ID/IQ method of contracting, including job order contracts, for low-cost construction contracts will be allowed, without FHWA approval, under certain circumstances.

 USAID

USAID issued a final rule to amend the USAID Acquisition Regulation (AIDAR) in order to clarify the requirements for accountability for all mobile information technology equipment.

VA

The VA adopted as final acquisition regulations: (i) to prescribe five new Economic Price Adjustment clauses for firm, fixed-price contracts; (ii) to identify the VA's task-order and delivery-order ombudsman; (iii) to clarify the nature and use of consignment agreements; (iv) to add policy coverage on bond premium adjustments and insurance on fixed-price contracts; and (v) to provide for indemnification of contractors for medical research and development contracts.

 A final rule amended the VAAR by: (i) revising VAAR part 831 to clarify the cost principles under chapter 31 and to apply those principles to both fixed-price and cost reimbursement contracts with educational institutions, as well as those with commercial and non-profit organizations; (ii) revising VAAR part 833 to update information concerning where an interested party may protest to the Contracting Officer, to provide for independent review a level above the contracting officer, and to clarify how interested parties may appeal a Contracting Officer’s decision on a protest; (iii) clarifying the types of protests that may be dismissed by the VA without consideration of the merits or may be forwarded to another agency for appropriate action; (iv) stating that certain challenges of the legal status of a firm as a regular dealer or manufacturer is determined solely by the procuring agency, the SBA if a small business is involved, or the Secretary of Labor; (v) updating two clauses in part 852 related to protests; (vi) clarifying a contractor’s obligation to continue performance pending resolution of a dispute; and (vii) revising a definition of a term in VAAR part 871 to comport with the same term used in VAAR part 831.

The VA revised the VAAR: (i) to implement FAR part 44 by making public VA’s additional requirements for providing its consent to subcontract; (ii) to describe items that should be evaluated as a part of a contractor’s purchasing system review and to establish that contractors should determine whether subcontract items meet the FAR definition of a commercial item; (iii) to implement and supplement FAR part 45 by addressing procedures for contractors to document their acquisition of property for use in the service of VA contracts; (iv) to address the transfer of title to the Government of contractor-acquired property; and (v) to outline the procedures for the use of such property on a successor contract.

In part to comply with the provisions of the National Defense Authorization Act of 2017 (NDAA) that place responsibility in the SBA to issue regulations regarding ownership and control of VOSBs and SBVOSBs, the VA proposed to amend its regulations governing such firms: (i) to remove all references to ownership and control for purposes of determining VOSB and SDVOSB status; and (ii) to recognize (again in compliance with the NDAA) that, in certain circumstances, a firm can qualify as VO or SDVO when there is a surviving spouse or an ESOP.

The VA proposed to amend and update  the VAAR in phased increments to revise or remove any policy superseded by changes in the FAR, to remove procedural guidance internal to VA into the VAAM, and to incorporate any new agency specific regulations or policies, all in order to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burdens on contractors. As part of this phased effort to revise the VAAR, the VA proposed revisions to Parts 831 (Contract Cost Principles and Procedures) and 833 (Protests, Disputes, and Appeals) as well as to affected sections of Parts 852 (Solicitation Provisions and Contract Clauses) and 871 (Loan Guaranty and Vocational Rehabilitation and Employment Programs). Subsequently, the VA published a final rule that, inter alia, (i) amended six clauses or provisions and removed one clause which duplicated FAR coverage and was not needed, (ii) provided updated policy on variations, tolerances and exemptions regarding overtime in contracts providing nursing home care for veterans, (iii) removed an information collection burden associated with an outdated practice of using bid envelopes; (iv) clarified language regarding the prohibition of contractors from making reference in their commercial advertising to anything that would suggest the VA endorses their products services or considers them superior to other products and services, and (v) revised definitions relating to the D&S Committee, Debarring Official, and Suspending Official currently contained in the VAAR. The affected parts of the VAAR included Part 802 (Definitions), 803 (Improper Business Practices and Personal Conflicts of Interest), 812 (Acquisition of Commercial Items), 814 (Sealed Bidding), and 822 (Application of Labor Laws to Government Acquisitions), as well as resulting changes to 852 (Solicitations Provisions and Contract Clauses).

As part of its continuing, phased efforts, the VA also proposed revisions to VAAR Parts 829 (Taxes), 846 (Quality Assurance), and 847 (Transportation), as well as affected Parts 852 (Solicitation Provisions and Contract Clauses) and 870 (Special Procurement Controls). In September, the VA issued two more sets (set 1 and set 2) of proposed revisions to its acquisition regulation (the VAAR), each set containing numerous proposed changes designed to revise or remove any policy superseded by changes in the FAR, to move internal VA procedural guidance to the VA Acquisition Manual (VAAM), and to incorporate new agency-specific regulations and policies. The VA revised VAAR Parts 811 and 832: (i)  to remove coverage of what brand name or equal purchase descriptions must include (as the FAR provides sufficient coverage); (ii) to remove coverage pertaining to brand names based on current FAR coverage; (iii) to remove purchase description clauses; (iv) to remove VAAR coverage of bid samples; (v) to remove the section providing coverage on procedures for negotiated procurements; (vi) to remove VAAR coverage on "items peculiar to one manufacturer"; (vii) to revise part 832 to add policy to implement an OMB memorandum entitled "Accelerating Payments to Small Businesses for Goods and Services"; (viii) to encourage making payments to small business contractors within 15 days of receipt of an invoice; (ix) to delegate authority within the VA to approve contract terms concerning advance payments; and (x) to remove subparts 832.5 (Progress Payments Based on Costs) and 832.8 (Assignment of Claims), as both contain internal procedural guidance not having a significant effect beyond the internal operating procedures of the VA.

The VA also proposed revisions to VAAR Part 817 (Special Contracting Methods), including, inter alia: (i) adding references to  41 U.S.C. 1702, 38 U.S.C. 8127– 8128, 41 U.S.C. 1303, and 48 CFR 1.301–1.304 as authorities for this Part; (ii) removing, among others,  subparts 817.1 (Multi-year Contracting),   817.202 (Use of Options), 817.204 (Contracts), 817.4 (Leader Company Contracting), and 817.402 (Limitations), and (iii) adding several sections, as well. Comments are due by February 25, 2019. In addition, the VA proposed to revise the VAAR: (i) to add coverage concerning (a) the Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace, (b) Other Socioeconomic Programs, and (c) Contract Modifications; and (ii) to revise VAAR sections concerning Protection of Privacy and Freedom of Information, the VA's Acquisition Regulation System, Construction and Architect-Engineer Contracts, and related solicitation provisions and contract clauses.   Comments are due by January 28, 2019.

 


 

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