Weekly Update Newsletter - April 2016

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SMALL BUSINESS

Clauses With Alternates—Small Business Programs

The Department of Defense (DOD) issued a final rule amending DFARS to clarify clauses and their prescriptions for small business programs and to create basic and alternate clauses structured in a manner to facilitate use of automated contract writing systems. This final rule provides the basic clause at 252.219-7003, Small Business Subcontracting Plan in full text as well as the alternate to the basic clause in full text, instead of only reflecting the paragraphs that are different. The clause at DFARS 252.219-7010, now titled “Notification of Competition Limited to Eligible 8(a) Concerns—Partnership Agreement” is modified to incorporate FAR clause 52.219-18 and its two alternates into the existing clause at DFARS 252.219-7010, 81 Fed. Reg. 17045. The rule became effective March 25, 2016.

GOVERNMENT CONTRACTS

Prohibition on Use of Any Cost-Plus System

DOD is proposing to amend DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2012 that amended title 10 of the United States Code by prohibiting any form of cost-plus contracting for military construction projects or military family housing projects, 81 Fed. Reg. 17050.  Comments on the proposed rule are due by May 24, 2016.

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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