Federal contractors and subcontractors will soon be subject to new regulations, which increase those contractors’ obligations to hire both veterans and individuals with disabilities (“IWDs”). On March 24, 2014, two final rules promulgated by the U.S. Department of Labor’s Office of Federal Contract Compliance Program (“OFCCP”) will go into effect. The veterans rule updates the
Michael Payne
The Differing Site Conditions Clause Is Alive and Well
Thanks to a recent decision by the Court of Appeals for the Federal Circuit, in Metcalf vs. U.S., the protection afforded by the Differing Site Conditions clause has been reaffirmed. Although the Court primarily addressed the requirement that federal agencies must demonstrate good faith and fair dealing in the administration of federal contracts, the…
Amended Version of the SUSPEND Act Clears House Oversight Committee and Aims to Change Suspension and Debarment Procedures for Federal Contractors
This past July, we told you about an important bill known as the Stop Unworthy Spending Act (“SUSPEND Act”). That bill, which was introduced by House of Representatives oversight committee chairman Darrell Issa, aimed to dramatically overhaul the suspension and debarment (“S&D”) procedures applicable to federal contractors. Currently, the suspension and debarment of contractors is…
Final Rule Imposes New Small Business Subcontracting Obligations on Large Business Prime Contractors
On August 15, 2013, the SBA put into effect a long-awaited Final Rule (Federal Register Volume 78, Number 136 (Tuesday, July 16, 2013)) designed to help small business subcontractors. The Final Rule, which implements policies set forth in the Small Business Jobs Act of 2010, provides for several very important changes to small business contracting.…
Proposed Change Past Performance Assessment System – Is it Fair?
By: Michael H. Payne & Maria L. Panichelli
On August 7, 2013, the DoD, GSA, and NASA proposed a rule (78 FR 48123) that would amend the FAR to significantly alter the past performance evaluation and assessment process. Specifically, the rule would cut in half the time that contractors have to comment on their own…
Continuing Government Focus on Fraud Might Lead to Significant Changes in Suspension and Debarment Procedures
Suspension and debarment procedures have been a hot topic in recent years, and it appears that the issue will remain a focus of congressional debate for the rest of this year as well. On June 12, 2013, Congress heard testimony on the state of the federal government’s suspension and debarment (S&D) system. The testimony was…
Fourth Circuit Drastically Extends Statute of Limitations for False Claims Act Actions – Contractors Appeal to Supreme Court
The False Claims Act (“FCA”) is a law that contractors must take very seriously. What many contractors fail to realize is that the reach of the FCA goes beyond the filing of fraudulent contract claims. In fact, it seems as though the government is actually searching to find new and interesting theories of application. This…
Termination for Default as a Weapon
There is no doubt that the government has the right, and even the responsibility, to terminate a contract completely or partially for default “if the contractor fails to (a) make delivery of the supplies or perform the services within the time specified in the contract, (b) perform any other provision of the contract, or (c)…
Should a Contractor Submit an REA or a Claim?
By: Michael H. Payne
The question of whether to submit a Request for an Equitable Adjustment, commonly referred to as an “REA,” or a claim, is one that clients ask on a frequent basis. It is not always an easy question to answer and our advice depends upon the history of the dispute, and the…
Accelerating Payments to Small Business Subcontractors
By: Michael H. Payne
The recession (which really is not over, despite what the economists have to say), has led to greater emphasis by the federal government on assuring prompt payment to government contractors. In fact, on September 14, 2011, the Office of Management and Budget (OMB) issued Memorandum 11-32, “Accelerating Payments to Small…