Weekly Update Newsletter - January 9, 2015

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GOVERNMENT CONTRACTS

DoD Issues Department of Defense Instruction 5000.02 Operation of the Defense Acquisition System

The Department of Defense (DoD) issued a new version of the acquisitions corps’ guide document entitled, Department of Defense Instruction 5000.02 Operation of the Defense Acquisition System.  The new version cancels the interim version that was implemented November 25, 2013.  The new version of instructions updates established policies for the management of all acquisition programs, specifically emphasizing that acquisition programs should be tailored to the product being acquired.  

DoD, GSA, and NASA Issue Proposed Rule to Amend FAR Clarification on Justification for Urgent Noncompetitive Awards Exceeding One Year

The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) issued a proposed rule to amend the Federal Acquisition Regulation (FAR) to clarify that a determination of exceptional circumstances is needed when a noncompetitive contract awarded on the basis of unusual and compelling urgency exceeds one year, either at time of award or due to post-award modifications, 79 Fed. Reg. 78378.  Comments on the proposed rule are due March 2, 2015.  

DISA Issues Request for Information Seeking a Next Generation End Point Security System

The Defense Information Systems Agency (DISA) has issued a request for information to contractors seeking a “next-generation” endpoint security system that would allow the agency to better configure, secure and keep tabs on network endpoints all using a central management tool.  Specifically, DISA is seeking an endpoint to: 1) link up the endpoint security system with a mobile-device management program; 2) directly feed into the system information from DOD’s continuous monitoring regime; and 3) rapidly reconfigure software and applications in response to cyber threats.  Contractor’s responses to the request for information are due February 2, 2015. DISA Request for Information: Next Generation End Point Security System. 

Defense Base Act Insurance: State Department Should Evaluate Its Open Market System and Incorporate Leading Practices into any Future Single Insurer Solicitation

The US Government Accountability Office (GAO) has reviewed the State Department’s (State) management of the Defense Base Act Insurance (DBA) transition from a single insurer program to an open market.  Specifically, the GAO reviewed the effect on contractors’ premium rates, and the effect on small businesses.  The review was done pursuant to the DBA’s requirements that U.S. government contractors buy workers’ compensation insurance for most employees working overseas, the cost of which is generally reimbursable under government contracts. From 1992 until 2012, State had a contract with a single insurer to supply all State’s contractors working overseas with DBA insurance. In July 2012, State’s single insurer program ended after State unsuccessfully sought to solicit a new DBA single insurer agreement and State transitioned to a system requiring its contractors to obtain DBA insurance on the open market.  The GAO has concluded that State did not follow leading acquisition practices in transitioning from a single insurer to an open market.  State took limited measures to document market research and had little time to complete the solicitation process in 2012, forcing State to transition to an open market without weighing the relative costs and benefits to determine which insurance system best served its needs.  With the data being limited the GAO was unable to conclude a clear effect on small businesses resulting from State’s transition to an open market system, however insurers and contractors have expressed concerns that the change has had or could have an adverse effect. Defense Base Act Insurance: State Department Should Evaluate Its Open Market System and Incorporate Leading Practices into any Future Single Insurer Solicitation

SMALL BUSINESS 

SBA Issues Proposed Rule to Amend Small Business Government Contracting NDAA of 2013

The Small Business Administration (SBA) issued a proposed rule to amend its regulations to implement provisions of the National Defense Authorization Act of 2013, which pertain to performance requirements applicable to small business and socioeconomic program set aside contracts and small business subcontracting, 79 Fed. Reg. 77955. SBA also proposed to make changes to its regulations concerning the nonmanufacturer rule and affiliation rules. Further, SBA proposed to allow a joint venture to qualify as small for any government procurement as long as each partner to the joint venture qualifies individually as small under the size standard corresponding to the NAICS code assigned in the solicitation. Comments are due February 27, 2015. 

Committee for Purchase From People Who Are Blind or Severely Disabled  

The Following Notices Were Issued:

80 Fed. Reg. 33, January 2, 2015, to add products (Thermos, 25 oz, Licensed; Tumbler, Drinking, 16 oz, Licensed; Jar, Drinking, 19 oz, Licensed) to the Procurement List.  The additions will become effective February 2, 2015. 

80 Fed. Reg. 34, January 2, 2015, proposing to add a product (Broom, Corn Whisk) and service (Janitorial Service, GSA PBS Region 5, Enterprise Computing Center, 985 Michigan Avenue, Detroit, MI) to the Procurement List.   Comments on the proposed additions are due February 2, 2015.

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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