As we detailed in a previous blog, on October 3, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) published a strategic plan to “safeguard[] the integrity of HHS grants and contracts.” The plan comes after the HHS-OIG found “gaps in HHS oversight of grants and contracts—gaps that allow HHS funds to be misspent, programs to fall short of their promise, and people to be put at risk.”Continue Reading HHS-OIG Set To Intensify Scrutiny of Grants and Contract Compliance: How to Prepare
HHS Proposed Rule Seeks to Align Health IT Procurement Standards to Leverage Interoperable Data
On August 9, the Department of Health and Human Services (HHS) published a proposed rule that seeks to amend and update the Health and Human Services Acquisition Regulation (HHSAR) to align health IT procurement requirements. The rule mandates that health IT procured by HHS meet certain “standards and implementation specifications adopted by the Office of the National Coordinator for Health Information Technology.”Continue Reading HHS Proposed Rule Seeks to Align Health IT Procurement Standards to Leverage Interoperable Data
Department of Defense Issues Class Deviation Delaying Application of NIST SP 800-171, Revision 3
On May 2, the Department of Defense (DOD) issued a class deviation to DFARS 252.204-7012 “to provide industry time for a more deliberate transition upon the forthcoming release of [National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, Revision 3].”Continue Reading Department of Defense Issues Class Deviation Delaying Application of NIST SP 800-171, Revision 3
OFCCP Requires Affirmative Action Program Certification by July 1
On April 1, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) opened its Contractor Portal for its annual Affirmative Action Program (AAP) certification. Covered federal contractors and subcontractors have until July 1 to sign in and certify they have developed, and continue to maintain, AAPs. Continue Reading OFCCP Requires Affirmative Action Program Certification by July 1
Register Now | Demystifying Controlled Unclassified Information Requirements Webinar
Please join us on November 2 for an engaging webinar, Demystifying Controlled Unclassified Information Requirements: Overview of the Regulatory Landscape and Strategies for Implementing a Successful Compliance Program, alongside Stacy High-Brinkley from BDO. Together, we will illuminate the dynamic landscape of federal Controlled Unclassified Information (CUI) requirements.Continue Reading Register Now | Demystifying Controlled Unclassified Information Requirements Webinar
Register Now | Subcontract Negotiation Strategy and Best Practices Webinar
All government contractors routinely review and negotiate subcontractor agreements. Whether you are the prime or the subcontractor, these agreements are critical for delivering solutions to government customers and capturing federal compliance requirements.
Please join our panel of Bass, Berry & Sims Government Contracts experts – Richard Arnholt, Todd Overman, and Sylvia Yi – along with our in-house colleague, Chad Pryor, Chief Counsel, Public Sector at TTEC, to discuss the art of negotiating subcontractor agreements and best practices for ensuring a successful relationship for both parties.
The webinar will take place on Monday, March 6, 2023, from 1:00 p.m. – 2:00 p.m. ET. Click here to register.Continue Reading Register Now | Subcontract Negotiation Strategy and Best Practices Webinar
U.S. Government Brings Its Buying Power to the Fight Against Climate Change
As President Biden prepared to jet off to the United Nations COP27 Climate Summit in Egypt, his administration announced a proposed rule that would dramatically enhance government contractors’ compliance obligations related to climate change.
Continue Reading U.S. Government Brings Its Buying Power to the Fight Against Climate Change
OFCCP’s New Affirmative Action Program Oversight Tool
A 2016 Government Accountability Office (GAO) report noted that the Office of Federal Contract Compliance Programs (OFCCP) did not have an official method of validating contractors’ affirmative action plans or programs (AAP) compliance. GAO recommended that OFCCP progress from an “honors” or self-representation system to a mechanism that regularly monitors AAP compliance. In September 2020, OFCCP published a notice seeking comment on the possibility of an annual AAP certification and verification process.
On December 2, 2021, the U.S. Department of Labor (DOL) announced that federal service and supply contractors and subcontractors presently required to create and maintain written AAPs will also be required to certify whether they meet annual AAP requirements. Certification will be through a secure online Contractor Portal developed and monitored by OFCCP. Contractors can also upload their AAPs to the portal during a compliance evaluation. Certifying compliance in the Contractor Portal does not exempt a contractor or subcontractor from compliance evaluations. Contractors and subcontractors that are only construction and not supply and service contractors are not required to certify AAP compliance.Continue Reading OFCCP’s New Affirmative Action Program Oversight Tool
BIS Imposes Civil Fine and Compels Hiring of Compliance Official or Cease Operations
On October 12, the U.S. Commerce Department, Bureau of Industry and Security (BIS) announced that it imposed a civil penalty fine against VTA Telecom Corporation (VTA) for the unauthorized export of controlled commodities to Vietnam. Additionally, BIS is requiring VTA to improve its export control compliance efforts and retain a Director of Trade Compliance. Alternatively, VTA can dissolve or cease operations.
VTA, located in Milpitas, California, was established in 2013 as a subsidiary of a Vietnamese state-owned telecommunications company. BIS is the primary U.S. government agency responsible for administering and enforcing export controls on commercial items that could support weapons proliferation and other threats to U.S. national security.
According to BIS, VTA procured and exported items from the United States to its parent company in Vietnam with knowledge that certain of those exports were intended to support a Vietnamese defense program. To settle the matter, VTA agreed to the following:
- A penalty of $1,869,372.
- Expenditure of $25,000 to fund its internal export compliance program (ICP).
- Hiring and retention of a Director of Trade Compliance to oversee VTA’s export activities for at least two years.
And … They’re Off! Contractors Race to Comply Now that the COVID-19 Vaccination Deviations Have Arrived
Well, that was quick. In four memos dated September 30 and October 1, contractors learned the terms of the contract provisions implementing the COVID-19 vaccine and masking requirements mandated by President Biden’s Executive Order (EO) 14042, discussed here, and the implementing guidance issued by the Safer Federal Workforce Task Force (Task Force) on September 24. In the next 10 days we expect to see most other agencies issue deviation memos similar to the General Services Administration (GSA) and Department of Defense (DoD) memos discussed below.
As discussed in this post, while the contract provisions, along with updated guidance from the Task Force, answer some of the open questions, contractors are still in the unfortunate position of rushing to ensure they are compliant with these requirements when the contract provisions apply to them without knowing the answers to some fundamental questions. Despite these open questions, companies have little time, for example, to ensure that covered employees are vaccinated by the December 8, 2021 deadline. After that deadline, any contractor that becomes subject to these requirements will have to ensure that on new contracts or options/extensions that incorporate the new clause, covered employees are fully vaccinated by the first day of performance, which of course is impossible unless contractors enforce these vaccine mandates in advance. That said, the memos do seem to clarify that compliance with the Task Force guidance will not be required for prime contracts solely for the manufacturing of products.
The FAR Clause
On September 30, the Federal Acquisition Regulation (FAR) Council issued a memo providing agencies with “initial direction” requiring the implementation of the Task Force guidance. It includes FAR 52.223-99, Ensuring Adequate COVID-19 Safety Protocols for Federal Contractors (OCT 2021) (Deviation), along with directions that agencies “expeditiously” issue class deviations to ensure that contracting officers can begin using the clause on or before October 15, 2021.Continue Reading And … They’re Off! Contractors Race to Comply Now that the COVID-19 Vaccination Deviations Have Arrived