The Government Contracts Quarterly Update is published by BakerHostetler's government contracts practice group to inform our clients of the latest developments in federal government contracting. This update covers the following topics:

- Counterfeit Parts

- Cybersecurity

- False Claims Act

- Whistleblower Protections

- Safeguarding Technical Information

- Consultant Cost Allowability

- Executive Compensation

- Legislative and Regulatory Updates

- Guest Article – DCAA Is Changing Its Audit Focus: Are You Ready?

- Excerpt from Counterfeit Parts & Cybersecurity Regulation: Changes Continue Impact Contractors:

DOD Publishes Proposed Rule Regarding Detection of Counterfeit Parts. In the last quarterly, we discussed the Department of Defense’s (“DOD”) first round of proposed rules on DFARS changes regarding counterfeit parts. On December 3, 2013, the FAR Councils published the second of three rounds of regulations laying out steps contractors must take to prevent the use of counterfeit parts in the supply chain. 78 Fed. Reg. 72,620. This regulation seeks to clarify when to use higherlevel quality standards in both solicitations and contracts. This proposed regulation primarily revises FAR 44.303, adding these higherlevel standards to the list of issues which should be considered during agency review of contractor purchasing systems. These standards must also be flowed down to subcontractors when appropriate, making this proposed rule of interest to subcontractors in the supply chain.