Weekly Update Newsletter - May 2015 #4

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GOVERNMENT CONTRACTS 

CRS Issues Report: Contracting with Inverted Domestic Corporations Answers to Frequently Asked Questions 

The Congressional Research Service (CRS) issued a report, “Contracting with Inverted Domestic Corporations: Answers to Frequently Asked Questions.”  The report provides the answers to 14 frequently-asked questions regarding the current restrictions on contracting with inverted domestic corporations, proposed amendments thereto, and the relationship between the prohibitions upon contracting with inverted domestic corporations and other provisions of law that restrict dealings with foreign contractors. Contracting with Inverted Domestic Corporations: Answers to Frequently Asked Questions

GSA Issues Final Rule to Amend GSAR to Remove Unique Item Identification Clause 

The General Services Administration (GSA) issued a final rule to amend the General Services Administration Acquisition Regulation (GSAR) to remove the GSAR clause Unique Item Identification, 80 Fed. Reg. 28849.  The final rule became effective May 20, 2015.  

SMALL BUSINESS ADMINISTRATION 

SBA OIG Issues Report: Improvements Needed in SBA’s Management of the WOSB Federal Contracting Program 

The Small Business Administration (SBA) Office of Inspector General (OIG) issued a report, “Improvements Needed in SBA’s Management of the Women Owned Small Business (WOSB) Federal Contracting Program.”  The SBA OIG’s objective was to determine whether: 1) WOSB awards complied with set-aside requirements; and 2) firms that received set-aside awards conformed to self-certification requirements.  The SBA OIG reviewed a sample of 34 awards between October 1, 2013 and June 30, 2014, consisting of 17 WOSB awards totaling $6.6 million (over 70% of the WOSB setaside awards) and 17 Economically-Disadvantaged Women Owned Small Businesses (EDWOSB) awards totaling $7.9 million (nearly 90% of the WOSB set-aside awards).  The SBA OIG found that contracting officers awarded 15 of the 34 set-aside awards without meeting the set-aside requirements of WOSB.  These 15 firms received approximately $7.1 million of FY2014 set-aside awards that may be improper, specifically 10 of the 34 WOSB set-aside awards were for ineligible work. Additionally, 9 of the 34 awards were made to firms that did not provide the required documentation to prove they were eligible for a WOSB set-aside award. Of the 34 WOSB awards reviewed, only 25 had documentation in the WOSB repository. Further, it was found that 13 of those 25 firms in the sample did not upload all of the required documentation to the repository, and 12 firms did not provide sufficient documentation to prove that a woman or women controlled the day-to-day operations of the firm. The report concluded that firms that may be ineligible accounted for approximately $8 million in WOSB setaside awards. Improvements Needed in SBA's Management of the WOSB Federal Contracting Program

LABOR AND EMPLOYMENT 

DOL Issues Final Rule Regarding the Rules of Practice and Procedures for Administration Hearings Before the Office of Administrative Law Judges 

The Department of Labor (DOL) issued a final rule regarding the regulations governing practice and procedure for proceedings before the DOL, Office of Administrative Law Judges (OALJ), 80 Fed. Reg. 28768.  A Notice of Proposed Rulemaking was published in the Federal Register on December 4, 2012 requesting public comment on proposed revisions and reorganization of the regulations. The revisions make the regulations more accessible and useful to parties, as well as harmonize administrative hearing procedures with the current Federal Rules of Civil Procedure.  The final rule will become effective June 18, 2015.  

Committee for Purchase From People Who Are Blind or Severely Disabled 

The Following Notice Was Issued: 

80 Fed. Reg. 27929, May 15, 2015, proposing to add a service (Third Party Logistics Service, U.S. Department of State P.O. Box 9115, Rosslyn Station, Arlington, VA) and delete products (Cushion, Chair; Cushion Seat, Vehicular; Stay Put Elastics Asst, Fashion Bobby Pin; Duster, Lambswool) from the Procurement List. Comments on the proposed addition and deletions are due June 15, 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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