Weekly Update Newsletter - December 2015

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GOVERNMENT CONTRACTS

Voluntary Post-Award Disclosure of Defective Pricing

The DOD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to stipulate that DOD contracting officers shall request a limited-scope audit, unless a full-scope audit is appropriate for the circumstances, in the interest of promoting voluntary contractor disclosure of defective pricing identified by the contractor after contract award, 80 CFR 72669.  Comments are due by January 19, 2016.

Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units

The DOD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for fiscal year 2015, which amends DFARS 217.202(2) and 234.005-1(1), to add “or initial production” to the text.  This will allow for the inclusion of a contract line item (possibly an option) to go to initial production without further competition, 80 CFR 72671.  Comments are due by January 19, 2016.

Buy American and Balance of Payments Program

The DOD is proposing to revise the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify when it is appropriate to not include DFARS clause 252.225-7001, Buy American and Balance of Payments Program, with regard to exceptions to the Buy American statute and Balance of Payment Program.  As written, procurement offices may inaccurately believe that it is permissible to omit the clause.  However, the clause is required in solicitations and contracts unless (1) the acquisition is for supplies for use within the United States and an exception to the Buy American statute applies (e.g., non-availability or public interest), or (2) the acquisition is for supplies for use outside the United States and an exception to the Balance of Payments Program applies 80 CFR 72672.  Comments are due by January 19, 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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