The General Services Administration (GSA) recently announced that beginning June 15, 2015, it will be using a new contractor assessment report to evaluate contractors with Multiple Award Schedule (MAS) contracts. The new report, which is available here, will be issued to contractors after GSA industrial operations analysts (IOAs) conduct their contract assessments. The report will be limited to performance against contract terms and conditions and will be provided only to GSA and the individual contractor. The idea is to provide timely and tailored feedback to contractors and the acquisition community on issues pertinent to MAS contract compliance. GSA leadership spent two years developing the new report, which is intended to replace the Contractor Assistance Visit Report and the Administrative Report Card. GSA stated that assessments will be more frequent with contracts likely to have compliance issues, based on yearly sales. GSA hopes the Contractor Assessment Report will allow contractors and Contracting Officers to address problems before they become major issues.
Continue Reading GSA’s New MAS Contractor Assessment Report – Is It Better?
BRAVE Act to Provide “Preference” on VA Contracts to Contractors Who Hire Veterans
On May 18, the House of Representatives unanimously passed legislation (H.R. 1382) that would allow the Department of Veteran Affairs (VA) to give a “preference,” in awarding contracts for the procurement of goods and services, to offerors who employ veterans on a full-time basis. The act was sponsored by Rep. Kathleen Rice (D-N.Y.)
Join us for Government Contracting in Tennessee
Please join us on Tuesday, June 9.
8:00 a.m. – 8:30 a.m.
Networking Breakfast (Complimentary)
8:30 a.m. – 12:15 p.m.
TBA Program ($165 for members and $320 for non-members)
Bass, Berry & Sims PLC
The Pinnacle at Symphony Place
150 Third Avenue South, Suite 2800
Nashville, TN 37201
Parking in the Pinnacle garage will be validated.Continue Reading Join us for Government Contracting in Tennessee
UPS Settles Alleged FCA Violations for Failing to Deliver (On Time)
United Parcel Service Inc.’s (“UPS”) recent settlement with the Department of Justice (“DOJ”) to resolve allegations that it submitted false claims to the federal government to conceal its failure to timely deliver packages serves as a reminder of the range of conduct that can lead to False Claims Act (“FCA”) liability for not satisfying the
Sponsored Claim for Subcontractor Severance Pay Granted under Fixed-Price Service Contract
The Armed Services Board of Contract Appeals (ASBCA) recently granted a claim sponsored by the prime contractor for its subcontractor’s employee severance costs under a fixed-price contract. Appeal of Government Contracting Resources, Inc., ASBCA No. 59162 (March 12, 2015).
Government Contracting Resources, Inc. (GCR), sought additional compensation for severance costs it incurred, along with its subcontractor, upon expiration of its service contract with NASA for the distribution of mail at the Kennedy Space Center. A collective bargaining agreement (CBA) between GCR subcontractor Creative Management Technology Inc. (CMT) and the International Association of Machinists and Aerospace Workers (IAMAW) granted severance pay to CMT bargaining unit employees who were not rehired by a successor company at the end of the service contract. The provisions of the CBA had been incorporated, through a modification, into GCR’s service contract with NASA.Continue Reading Sponsored Claim for Subcontractor Severance Pay Granted under Fixed-Price Service Contract
Reminder – Senders Beware: Verify Receipt of Email
A recent size appeal at the Small Business Administration (SBA) serves as a good reminder to government contractors to verify actual receipt of email appeals or risk having their protest dismissed as untimely. The SBA recently dismissed a size appeal for this very reason. Size Appeal of Supplies Now, Inc., SBA No. SIZ 5655
Small Business Reaches Settlement to Resolve Allegations it Falsely Certified Compliance with SBIR Program
Despite fulfilling its contractual obligations and voluntarily disclosing its possible oversight, nLight Photonic, Inc. (“nLight”), a Washington-based small business, was pushed to a $420,000 settlement with the Department of Justice to resolve allegations that it violated the False Claims Act by knowingly submitting false certifications regarding its eligibility for contracts and grants under the U.S. Small Business Administration’s (“SBA”) Small Business Innovation Research (“SBIR”) program.
The SBIR program was created to encourage U.S. small businesses to conduct federal research & development that may also serve the community at-large. To be eligible for SBIR funds, a company must satisfy several conditions, including:
1. Having a U.S. place of business;
2. Being majority owned and controlled by individuals that are U.S. citizens (or permanent residents) or by another entity meeting this requirement; and
3. Employing fewer than 500 employees.
Negotiating Contentious Flowdowns: From Data Rights to TINA
If you’re in the area, join me at the The East Tennessee Chapter of the National Contract Management Association (NCMA) lunch meeting on Wednesday, May 6, 2015.
I’ll be speaking on Negotiating Contentious Flowdowns: From Data Rights to TINA. My presentation will include a discussion of:
- Mandatory vs. Non-Mandatory Flowdowns
- Penalties for Noncompliance with Flowdowns;
United Technologies is Saved from $657 million False Claims Act Verdict by the Sixth Circuit
On April 6, 2015, the Sixth Circuit delivered a costly blow to the United States government to the tune of $657 million when it issued its opinion in United States v. United Technologies Corporation and remanded the case back to the district court to review the damages award, yet again.
This was the second time that the Sixth Circuit heard arguments deriving from the United States False Claims Act case against Pratt & Whitney (“Pratt”), now owned by United Technologies, for false statements the company made when competing against GE Aircraft for contracts to build F-15 and F-16 jet engines. In 1983, in an attempt to outbid GE Aircraft and make it hard for the government to issue a split-award contract, Pratt misstated its projected costs and certified that the company’s bid included its “best estimates and/or actual costs.” After uncovering Pratt’s overstated costs projections, the government filed both an administrative action against the company in the Armed Services Board of Contract Appeals (“ASBCA”) under the Truth in Negotiations Act and a lawsuit in district court alleging violations of the False Claims Act.Continue Reading United Technologies is Saved from $657 million False Claims Act Verdict by the Sixth Circuit
Recent Plea Deal Highlights Importance of Post-Government Employment Conflicts of Interest
We are all familiar with the “revolving door” between the public and private sector – government employees will often leave their posts and cross over to the private sector to capitalize on their experience in the government. However, when government employees make that transition, it is imperative that they consider the federal conflict of interest laws, which may prohibit them from taking certain private sector positions and, at minimum, require them to be screened from particular types of work on a go forward basis. Failure to consider these laws could lead to severe consequences. A recent plea agreement highlights the importance of remaining mindful of these rules when negotiating post-government employment.
On Tuesday, March 11, 2015, former U.S. Air Force Captain Adam J. J. Pudenz pleaded guilty in Iowa federal court to violating restrictions on post-government employment and making a false statement to law enforcement agents. In 2010, Pudenz served as a U.S. military contracting officer in Afghanistan and worked on several U.S. government contracts related to the purchase of clothing and boots from an Afghan trading company. Pudenz admitted that before leaving his position as a contracting officer in Afghanistan, he negotiated future employment with the same Afghan company. Pudenz ultimately began working for the trading company and lobbied the U.S. government on matters related to the contracts he had previously managed.Continue Reading Recent Plea Deal Highlights Importance of Post-Government Employment Conflicts of Interest