Merle M. DeLancey Jr.
2020 may prove to be one of the most active years for federal contractors holding General Services Administration (“GSA”) Federal Supply Schedule (“FSS”) contracts and certain federal contractor registration requirements managed by GSA. This post is the first of a series on GSA’s changes and addresses GSA’s most publicized action—the consolidation of its federal supply schedules into one schedule.
As promised, in October 2019, GSA released a solicitation that consolidated the solicitations for its 24 federal supply schedules into one solicitation to obtain an FSS contract. GSA’s consolidation involves three Phases. Continue reading “GSA’s Big Changes in 2020, Part 1: Federal Supply Schedules Consolidation”
Justin A. Chiarodo and Robyn N. Burrows
A very Happy New Year to our GovCon Navigator readers! Further expanding recent supply chain restrictions across federal procurement, the Department of Defense (“DoD”) issued an interim rule prohibiting DoD from procuring equipment or services from certain Chinese entities (and possibly Russian) if used to carry out DoD nuclear deterrence or homeland defense missions. The rule builds on the Section 889 supply chain restrictions we previously covered in a prior blog post.
What should contractors do now given the interim rule is already in effect? Contractors should first evaluate their existing contract portfolios for covered missions and take immediate steps to eliminate all covered products from their supply chain (and find alternate sources of supply). If the rule might impact contract performance, you should be prepared to address this with the appropriate counterparty. And given the requirement for compliance certifications that mirror Section 889, contractors should also harmonize monitoring and compliance with their existing supply chain compliance programs. Among other things, this should address the requirement to obtain compliance certifications from downstream subcontractors and suppliers.
Read on for the specifics. Continue reading “A DoD New Year’s Resolution: No More Chinese (and Possibly Russian) Products and Services in Support of Key Missions”
Merle M. DeLancey Jr.
On August 15, 2019, the Defense Health Agency (“DHA”) and Defense Logistics Agency (“DLA”) agreed upon a joint approach to healthcare logistics. Under the Memorandum of Agreement (“MOA”), DLA will be responsible for materiel acquisitions, while DHA will take the lead on medical services acquisitions. The MOA clarifies the agencies’ complementary roles and responsibilities and avoids duplication of effort. The MOA covers all aspects of medical logistics support provided by DLA to DHA, and DHA’s consideration for that support in performance areas including pharmaceuticals, medical-surgical supplies, healthcare technology equipment, cataloging, and Class VIII surge and sustainment materiel required by the services to meet the demands of the national military support strategy.
The uninformed might question the need for DHA and DLA to formally enter into a MOA. After all, DHA and DLA are both under the Department of Defense (‘DoD”) umbrella. Why is an agreement required to coordinate the two agencies’ efforts? Why wasn’t such coordination and avoidance of duplication of effort simply ordered by DoD senior command? Good questions perhaps, but the MOA was necessary to ensure the agencies stay in their respective lanes. Continue reading “Defense Health Agency and Defense Logistics Agency Memorandum of Agreement: A Good First Step, but What about Coordination with the Department of Veterans Affairs?”
Luke W. Meier
The effort to create an “Amazon-like” market for Government purchasing has taken another step forward. After completing its market consultation phase, the General Services Administration (“GSA”) has now put forth a proposal for an e-commerce test portal, through which federal agencies will be able to purchase commercial products from a select group of vendors that will set up new online marketplaces specifically for federal purchasing. (See Phase II Report here.)
To simplify regulatory requirements, all purchases on the test portal must be within the micro-purchase threshold—currently $10,000 for most types of purchases. To expand the breadth of its trial run, GSA has asked Congress to temporarily raise the micro-purchase threshold to $25,000 “for a limited period of five years,” only with respect to purchases “through GSA-approved commercial e-commerce portals.”
The scope of the trial program also will depend on which (and how many) vendors receive the “initial proof of concept contracts” to sell products through portals during the trial run. To avoid being locked in to a single supplier, GSA has said it needs “at least two [vendors] or we won’t award.” Will Amazon itself be a vendor? Right now, GSA says it is unclear “if Amazon will compete” for a spot in the pilot program.
Contractors with an interest in the direction of this effort should continue to express their views. Feedback from the pilot program will guide GSA’s next steps as it decides how to move forward with the commercial e-commerce purchasing concept.
Merle M. DeLancey Jr.
If you’re like me, it’s the time of year when you clean out your garage and closets and do all those outside projects you delayed until the weather warmed up. If you are a government contractor, you should consider this to be the season to do some spring cleaning in terms of your government contract compliance programs and procedures. Not to be an alarmist, but there are numerous areas you can review now and, if you should find some compliance deficiencies, you still have ample time to get your house in order before an agency audit or the deadline for submission of certain government reports.
Set forth below is a list of areas you may want to clean up: Continue reading “Spring Cleaning for Government Contractors? Think Compliance.”
Blank Rome Partner Justin A. Chiarodo will be a presenter at BDO’s Winter 2019 Marketplace Outlook Update for Government Contractors, “Top 10 Trends and Compliance Obligations in the Evolving World of Commercial Item Procurement.” This live webinar will take place Thursday, February 28, 2019, from 12:30 to 1:30 p.m. EST.
For more information, please visit our website.
Merle M. DeLancey Jr.
Recently, clients have asked if they or a vendor or supplier are a “subcontractor” under a federal government contract. Sometimes the answer is easy—e.g., you are a subcontractor when a prime contractor contracts directly with a vendor or supplier (hereinafter “vendor”) to perform a federal contract. But the lines become less clear when a prime contractor does not inform the vendor that the subcontract is being entered into in furtherance of a federal government contract or where the vendor supplies goods that the prime contractor uses to perform commercial and government contracts.
Why Is Subcontractor Status Important?
Subcontractor status is important to prime and subcontractors. A federal prime contractor is required to flow-down multiple Federal Acquisition Regulation (“FAR”) clauses to its subcontractors. See FAR 52.212-5(e). The required flowdown clauses that receive the most attention implement three antidiscrimination laws: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, as amended; 29 U.S.C. § 793; and Section 402 of the Vietnam Era Veterans’ Readjustment Assistance Act, 38 U.S.C. § 4212. A prime contractor’s failure to flow down these clauses to its subcontractors could result in the prime contractor being held responsible and/or liable for its subcontractor’s noncompliance. Continue reading “Who Is a Subcontractor under a Federal Government Contract?”