New labor categories must not duplicate any categories currently awarded in terms of functions, and commercial/most favored customer rates must be supported just as with the initial offer.

In a year when the president and congress seem unable to work together and Washington has been mired in partisan gridlock, the two sides have found a common cause that they and all Americans can agree on.   Congress recently passed, and the president signed the Veterans Opportunity to Work to Hire Heroes Act of 2011(VOW to Hire Heroes Act).  The act provides tax credits and other incentives for employers to hire veterans. 

Rep. Jeff Miller (R-FL), Chairman of the House Committee on Veterans’ Affairs said “I am committed to reducing the veterans’ unemployment rate to below 5 percent over the next two years. They kept their vow to us, now it’s our turn to vow to help them.” 

The last issue of this newsletter reported that the ASBCA disallowed meals incurred locally to discuss recruiting with professional colleagues. A complete reading of that decision indicates only $500 were involved. The contractor did not provide DCAA with any documentation. Instead, new documentation and rationale were presented in court. Although alleged to be for  recruiting when finally revealed in court, the list of attendees indicated no recruiting candidates were  involved. Details on other issues in this decision may have added to the Board’s suspicions on the legitimacy of the costs. [SplashNote Systems, Inc. ASBCA No. 57403]


Courtesy of:
Darrell Oyer & Company
Government Contract Specialists
PO Box 11484
Milwaukee, WI  53211
414-446-8133
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

The Department of Energy December has proposed changing the way it monitors contractor legal costs and determines allowability. The proposed changes would expand DOE contracts subject to the agency's existing cost rules by lowering the threshold on the value of contracts covered; removing an exemption limiting coverage to work performed at DOE facilities and expanding applicability to subcontractors and retrospective insurance carriers.

The proposed rules also would require DOE approval of legal settlements involving contractor payments of $25,000 or more. Approval currently is required for settlements of $50,000 or more. In addition, it includes provisions setting out limits on reimbursement of costs for retaining legal and describing costs that are unallowable, require special treatment or must be approved in advance.

The proposed revisions would cover all outside legal costs incurred under DOE's Management and Operating (M&O) contracts, non-management and operating cost reimbursement contracts exceeding $100,000,000 and non-management and operating contracts exceeding $100,000,000 that include cost reimbursable elements of more than $10,000,000. 

With respect to allowable legal costs, the proposed rules provide that compliance is a prerequisite for allowability of legal costs, but note that compliance with the part does not guarantee that costs will be determined to be allowable. All costs, whether or not identified as specifically allowable or unallowable, are still subject to the rules of allowability in the Federal Acquisition Regulation and the Department of Energy Acquisition Regulation.

The proposed rules also revise requirements for submission of contractor legal management plans, staffing and resource plans, and annual legal budgets. The proposed changes were made in response to lessons learned by the department and to ensure adequate oversight of contractor legal management.