The Buy America Act (BAA) is a domestic preference statute that attempts to protect the U.S. labor force by providing a preference for American goods purchased by the government. A contractor’s “nationality” is not considered – it is the place where the goods are mined, produced or manufactured that controls whether or not they are considered “American” goods. Most government…
The Government Accountability Office recently found that most federal agencies lack active and effective suspension and debarment programs, putting the government at unnecessary risk of waste, fraud, and abuse.
To remedy this situation, the Director of OMB has directed agencies to take the following actions:
Appoint a senior official who will be responsible for assessing the agency's…
Contractors who have received legislative earmarks may soon face increased scrutiny of their cost accounting practices from DCAA auditors. Since 1984, FAR cost principles have declared that costs associated with lobbying efforts are generally unallowable. See FAR 31.205-22. In general, DCAA defines lobbying costs as “amounts incurred to influence the outcome of elections,…
The U.S. Small Business Administration (“SBA”) recently issued a new Final Rule, effective March 12, 2012, increasing the small business size standards for 34 industries and 3 sub-industries in NAICS Sector 54, “Professional, Technical and Scientific Services,” as well as for NAICS Code 811212, “Computer and Office Repair and Maintenance.” Small Business Size Standards: Professional,…
The elements of a criminal false claims act case are substantially similar to the elements of a civil false claims act case: generally the knowing submission of a materially false or fraudulent claim for money or property to the government. So, what prompts the Federal Government to pursue a criminal false claims act case in addition to a civil one? Although the Department of Justice…
In Engage Learning, Inc. v. Salazar, No. 2011-1007 (Fed. Cir. Oct. 5, 2011), the United States Court of Appeals for the Federal Circuit clarified that when a contractor alleges the existence of an express or implied-in-fact contract with the government, that allegation is enough for a Board of Contract Appeals to have jurisdiction under the Contract Disputes Act (CDA). The Board should…
On January 30, 2012, DoD issued a final rule amending the DFARS to require major contractors to report independent research and development (IR&D) projects for which reimbursement, as an allowable indirect cost, is sought from DoD. See DFARS 231.205-18(c)(iii)(C). Under this rule, which is effective immediately, major contractors must report IR&D projects to the Defense…
The Defense Contract Audit Agency (DCAA) oversees contractor compliance by performing routine and non-routine audits. In addition, however, defense contractors typically maintain their own internal auditors to monitor policies, procedures, and business systems related to their government contracts.
Most internal audit reports cover a broad range of matters that, understandably, the General…
Michael Schrier will be a presenter at the upcoming American Subcontractors Association (ASA) Business Forum and Convention 2012 on March 1-3, 2012 in San Antonio, Texas. Mr. Schrier’s presentation titled, “Employee or Independent Contractor? Getting Worker Classification Right” will discuss how the IRS and states enforce classification rules and available resources to help you…
Jackson Kelly attorney Hopewell Darneille recently helped prepare comments submitted by the Council of Defense and Space Industry Associations (“CODSIA”) opposing the United States Department of Agriculture (“USDA”) Acquisition Regulation (“AGAR”) proposed new Clause 452.222-7001, “Labor Law Violations.” USDA’s proposal was published in the Federal Register on December 1, 2011, as both a “direct…
West Virginia University recently won a dispute against a West Virginia businessman who had registered and used the internet domain name www.wvusports.comin a manner that infringed upon WVU’s federally-registered “WVU” trademark. The World Intellectual Property Organization, the entity that oversees these types of disputes, fully agreed with WVU’s position and ordered GoDaddy.com – the domain…
Government contractors (and, in particular, commercial companies) need to be aware of the Federal Government’s procurement-preference program for biobased products, called BioPreferred. Under section 9002 of the Farm Security and Rural Investment Act of 2002 (“FSRIA”), the Department of Agriculture (“USDA”) is responsible for leading this initiative.