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REGULATORY DEVELOPMENTS
Regulatory developments take front stage as the Civilian and Defense Agency Councils have issued several Federal Acquisition Circulars (FACs) in the last two weeks containing interim and final changes to the Federal Acquisition Regulation (FAR), as well as publishing for comment in the Federal Register new proposed regulations.
On November 23rd, FAC 2005-22 was published in the Federal Register with a final rule change effective December 24, 2007 to establish policy regarding contractor code of ethics and business conduct and the display of federal agency Office of Inspector General (OIG) fraud hotline posters, a rule we commented on through CODSIA. Unlike the proposed rule, the formal training program and internal control system have been made inapplicable to small businesses. In addition, the requirements in the internal control system relating to "disclosure" and "full cooperation" have been deleted, and a contractor will not be required to display government fraud hotline posters if it has established a mechanism by which employees may report suspected instances of improper conduct and instructions that encourage employees to make such reports.
New Final Regulation on Contractor Code of Business Ethics and Conduct (Fed Reg, 11/23/07)
However, while we made progress on that rule relating to contractor compliance programs, at the request of the Department of Justice, a proposed rule was published on November 14th to require contractors to, among other provisions, notify contracting officers immediately when violations of federal criminal law concerning such contracts or subcontracts are detected. We will be submitting written comments through CODSIA by the January 14, 2008 deadline.
New Proposed Rule on Contractor Compliance Program and Integrity Reporting (Fed Reg, 11/14/07)
On November 7th the Council’s issued three interim rules (FAC 2005-19), effective immediately (with comments due on January 7, 2008 to be considered in the formulation of the final rule), that further implement the SAFETY Act; revise the current Service Contract Act exemption to be consistent with the current Department of Labor regulations and establish a new category of exemption for contracts for certain services; and implement an legislative change to the Robert T. Stafford Disaster Relief and Emergency Assistance Act that authorizes set-asides for major disaster or emergency assistance acquisitions to businesses that reside or primarily do business in the geographic area affected by the disaster or emergency. Exemption of Certain Service Contracts from the Service Contract Act (SCA) (Fed Reg, 11/7/07)
SAFETY Act: Implementation of DHS Regulations (Fed Reg, 11/7/07)
Labor Standards for Contracts Containing Construction Requirements--Contract Pricing Method References (Fed Reg, 11/7/07)
AGENCY NEWS (NON-REGULATORY)
DOD Reminds Workforce to Input Contractor Past Performance Information (DPAP Policy Memo, 11/27/07)
GSAChief Acquisition Officer Molly Wilkinson moving to SBA (FCW, 11/20/07)
CONGRESSIONAL DEVELOPMENTS
Congress Gives Defense Millions for More Contract Oversight (Gov Exec, 11/16/07)
White House Threatens Veto of DOT & HUD Appropriations (H.R. 4156) (White House SAP, 11/14/07)
White House Threatens Veto of Emergency DOD Supplemental (H.R. 3074) (White House SAP, 11/14/07)
GAO & IG REPORTS
IG: DHS Wrongly Awarded Contract, and Perhaps an Award Fee to Alaska Native Firm (FCW, 11/27/07)
Hurricane Katrina: Ineffective FEMA Oversight of Housing Maintenance Contracts in Mississippi Resulted in Millions of Dollars of Waste and Potential Fraud (GAO, 11/16/07)
LEGAL DEVELOPMENTS
GAO Finds Contract Bundling Justified (GAO, 11/07/07)
Civilian Contractor Indicted for Allegedly Soliciting Bribes While Working at Camp Arifjan in Kuwait (DOJ, 11/20/07)
MISCELLANEOUS
Report: E-verify (Immigration Status) Database Not Accurate (Wash Tech, 11/27/07) |
