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Last week, the Federal Acquisition Regulation ("FAR") Council published a final rule amending the FAR to implement a portion of the National Defense Authorization Act for Fiscal Year 2017 ("2017 NDAA"), which requires examples of failure to make good faith efforts to comply with a small business subcontracting plan.
The final rule also provides that "failure to make a good faith effort to comply with the plan may result in the assessment of liquidated damages per FAR 52.219-16, Liquidated Damages—Subcontracting Plan," and requires that "all indirect costs, with certain ...
Department of Defense solicitations require a Mission-Essential Contractor Services Plan when the DoD procures “Essential contractor Service and Mission-essential Functions.” DFARS 252.237-7023. The Plan must address the contractor’s ability to provide mission-essential functions during periods of crisis including, for example, how the contractor will supply the personnel and resources required to maintain continuity of essential functions “for up to 30 days or until normal operations can be resumed.” DFARS 252.237-7023(b)(1).
While most Plans contain ...
The SBA has proposed significant changes to the rules governing joint ventures as part of its overhaul of the SBA’s small business program regulations.
The 3-2 Rule: Currently, a joint venture may receive a maximum of three contract awards in a two-year period. The proposed rule eliminates the cap on contract awards, but continues the two year limitation period. Within that period, a joint venture may receive unlimited awards and still comply with SBA rules.
Member Substitution: A joint venture qualifies as a small business as long as each member qualifies individually. Joint ...
Most government contracts include a clause giving the government the right to terminate the contract, or any part thereof, for its sole convenience “when it is in the best interests of the government.” FAR Parts 49, 12, 13, and 31 establish the regulatory requirements for termination and settlement of government contracts. The mechanics are specific. Upon receipt of the notice of termination, the prime contractor should immediately stop all work and terminate all subcontracts related to the terminated portion of the prime contract. Inventory disposal schedules must be ...
Prime contractors are responsible for incorporating the appropriate provisions of their prime contracts into the agreements with their subcontractor. Determining which clauses are applicable to subcontractors and how best to monitor subcontractor compliance needs to be a priority. The first step is identifying contract clauses that are required to be incorporated into the contractor’s subcontracts. These “mandatory flow-downs” are FAR, DFARS, and other contract clauses that, by their own terms, are required to be incorporated into subcontracts. Clauses that must ...