Weekly Update for Government Contractors and Commercial Businesses – March 2024 #4

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GOVERNMENT CONTRACTS

Agency for International Development (USAID) Final Rule: USAID Acquisition Regulation (AIDAR), Security and Information Technology Requirements

On March 20, USAID published a Final Rule amending the AIDAR to incorporate a revised definition of “information technology” (IT) and new contract clauses relating to information security, cybersecurity, and IT resources. The purpose of these revisions is to provide increased oversight of contractor acquisition and use of IT resources. The Final Rule is available here and will be effective May 20, 2024.

Department of Defense (DOD) Final Rule: Defense Federal Acquisition Regulation Supplement (DFARS), DOD Mentor-Protégé Program (MPP)

On March 26, DOD published a Final Rule amending the DFARS to implement the permanent authorization and modification of the DOD MPP. The Final Rule is available here and is effective as of March 26, 2024.

Department of Defense (DOD) Final Rule: Defense Federal Acquisition omelandhSupplement (DFARS), Trade Agreements Thresholds

On March 26, DOD published a Final Rule amending the DFARS to incorporate revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative. The Final Rule is available here and is effective as of March 26, 2024.

Department of Defense (DOD) Proposed Rule: Defense Federal Acquisition Regulation Supplement (DFARS), Modification of Notification of Intent to Transport Supplies by Sea

On March 26, DOD published a Proposed Rule amending the DFARS to remove the solicitation provision at DFARS 252.247-7022, Representation of Extent of Transportation By Sea, and to revise the contract clause at DFARS 252.247-7023, Transportation of Supplies by Sea, accordingly, to affect the purpose of the provision using only the clause. This change will streamline instructions to contractors about required notifications to the Government of transportation of supplies by sea. The Proposed Rule is available here. Comments close May 28, 2024.

Department of Defense (DOD) Memorandum: Audit of DOD Compliance with Whistleblower Protection Requirements in FY 2020 Contracts

On March 18, DOD issued a memorandum about an audit to assess compliance with whistleblower protection requirements under DoD contracts. The DoD IG found that contracting officers generally included the required whistleblower clause (Defense Federal Acquisition Regulation Supplement clause 252.203-7002, Requirement to Inform Employees of Whistleblower Rights) in contracts but did not verify that contractors informed employees in writing of their whistleblower rights and protections. The Memorandum is available here.

Department of Defense (DOD) Memorandum: Data Call for Pilot Program for Anything-as-a-Service Contracts or Agreements

Section 809 of the National Defense Authorization Act (NDAA) for FY 2024 directs the Secretary of Defense to establish a pilot program for “anything-as a service” and to brief the congressional defense committees not later than June 30, 2024, on implementation of the pilot program. The pilot program will explore the use of consumption-based solutions to address any defense need that is feasible to provide users on-demand access, quickly add newly released capabilities, and bill based on actual usage at fixed price units. The full Memorandum is available here.

General Services Administration (GSA) Blog: Advanced Notice for MAS Refresh 20 and Upcoming Mass Modification

GSA’s Federal Acquisition Service (FAS) is planning to issue GSA Multiple Award Schedule (MAS) Solicitation 47QSMD20R0001 – Refresh # 20 and an associated mass modification (mass mod) to all existing contracts in April 2024. Read more here.

Upcoming Government Contracts Presentations

WEBINAR: FAR Part 17: Special Contracting Methods, Isaias “Cy” Alba, IV, March 22, 2024. Read more here.

WEBINAR: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, Katherine B. BurrowsJacqueline K. Unger, March 28, 2024. Read more here.

PM WEBINAR: PilieroMazza Annual Review: Lessons from 2023 Contract Claims and Appeals Decisions Affect Approach to 2024 Cases, Lauren BrierJonathan “Jon” R. Neri, April 18, 2024. Read more here.

WEBINAR: Small Business Contracting & Subcontracting, Isaias “Cy” Alba, IV, April 19, 2024. Read more here.

LABOR & EMPLOYMENT 

Department of Labor (DOL) News Release: DOL to open online portal April 1 for federal contractors, subcontractors to certify affirmative action program compliance

On March 25, DOL announced its Office of Federal Contract Compliance Programs will begin accepting online submissions on April 1 from covered contractors to certify they have developed and maintained affirmative action programs for each establishment or functional unit. Read more here.

Department of Labor (DOL) News Release: DOL Unveils New Resource to Increase Competitive Integrated Employment for People with Disabilities

The Competitive Integrated Employment Transformation Hub brings together resources from across the federal government to offer practical guidance, policy information and evidence-based best practices for people with disabilities, their families, employers, employment service providers and state agencies. Competitive integrated employment ensures that people with disabilities are paid competitive wages and work in environments where most employees do not have disabilities. Read more here.

Suit Over Labor Agreement Mandate on Federal Projects Withdrawn, Bloomberg Law

A construction industry group is withdrawing its legal challenge to a Biden administration rule requiring collective bargaining agreements with unions on certain large-scale federal contracts. Read more here (subscription required). 

States Say Prez Doesn’t Have Power to Hike Contractor Pay, Law360

Four states told the Ninth Circuit that the Biden administration’s implementation of a $15-per-hour minimum wage for federal contractors was unlawful, arguing that the government misinterpreted a statement of statutory purpose as a mandate for broad regulatory authority. Read more here (subscription required). The Brief is available here.

House Conservatives Recycle Federal Worker Pay and Benefit Cuts in Budget Document, Government Executive

The Republican Study Committee’s fiscal 2025 budget plan would drastically cut federal workers’ retirement and health care benefits and end across-the-board annual pay hikes. Read more here.

Upcoming Labor & Employment Presentations

PM WEBINAR: New Wave of Pay Transparency Requirements Affects Employers and Federal Contractors, Sarah L. NashSara N. Strosser, April 4, 2024. Read more here.

WEBINAR: From Compliance to Competitiveness: Revamped DBA Rule Reshapes Labor Landscape for Construction Contractors, Nichole D. AtallahSarah L. Nash, April 5, 2024. Reach more here

CONFERENCE: Pricing it Right – Current Impacts on Cost and Pricing Strategies, Nichole D. AtallahApril 18, 2024. Read more here.

MERGERS & ACQUISITIONS

DOD Urged to Improve Monitoring of Defense Sector M&A Activities, ExecutiveGov

Sens. Elizabeth Warren, D-Mass., and Mike Rounds, R-S.D., members of the Senate Armed Services Committee, have called on the Department of Defense to reform its approach to addressing risks from mergers and acquisitions in the defense sector. Read more here.

CYBERSECURITY & DATA PRIVACY

Department of Homeland Security (DHS) Press Release: DHS and DG CONNECT Announce Initiative Comparing Cyber Incident Reporting to Better Align Transatlantic Approaches

On March 20, DHS and European Commission’s Directorate General for Communications, Networks, Content, and Technology (DG CONNECT) announced an initiative to compare cyber incident reporting elements that will inform cyber incident reporting requirements by the US and European Union (EU) under the NIS 2 Directive. This transatlantic collaboration between the US and EU builds on their efforts to secure their people, critical infrastructure, and businesses against detrimental cyber activities. The first step in this focused initiative includes an analysis of similarities and differences between the recommendations of the DHS Report on Harmonization of Cyber Incident Reporting to the Federal Government, and the cybersecurity incident reporting framework under the NIS 2 Directive in the EU. Read more here.

California Issues AI Guidelines for Procurement, Government Use, Bloomberg Government

The California Department of Technology released on Thursday a set of rules that state agencies must follow if they purchase or use artificial intelligence to generate content, such as analyses of healthcare claims or tax filing data. Read more here (subscription required). 

House Passes Bill to Protect Data From Foreign Adversaries, Law360

The House voted unanimously on Wednesday to pass landmark data protection legislation that would ban data brokers from transferring, selling, or providing access to Americans’ sensitive personal data to foreign adversaries, including China. Read more here (subscription required). The Bill is available here.

Upcoming Cybersecurity & Data Privacy Presentations

WEBINAR: What’s the Latest on CMMC, Nichole D. AtallahDaniel Figuenick, III, April 8, 2024. Read more here

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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