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Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government Contractors. We just completed two articles on the Truth in Negotiations Act (TINA) [1] and, before that, two articles on Defense Contract Audit Agency (DCAA) audits.
As one of three major acquisition policy changes GSA is seeking over the next year, the proposal would remove language in the schedules program that many blame for why agencies use lowest price, technically acceptable (LPTA) still too often. Koses said CICA change would help contracting officers as well as companies alike.
TOP TEN CPO PRIORITIES for 2022: Webinar Recap. After a rollercoaster 2021, how do we pivot and plan for a successful Procurement strategy in 2022? . Improving business resilience and reducing supply disruption to protect revenue and profitability has become a top priority in 2022. REDUCE SPEND COST .
On November 16, 2023, the General Services Administration issued a proposed rule updating the General Services Acquisition Regulation (GSAR) Federal Supply Schedule Economic Price Adjustment (EPA) clauses. limits on the timing and number of price adjustments). Pricing context is dependent on accurate, relevant data.
On November 16, 2023, GSA issued a proposed rule updating the General Services Acquisition Regulation (GSAR) Federal Supply Schedule Economic Price Adjustment (EPA) clauses. The rule proposes to remove “certain economic price adjustment requirements within these clauses to better align with commercial standards and practices.”
The legislation includes an amendment to a portion of Section 1521 of the defense bill for fiscal 2022, which centralizes the procurement of cyber products and services across the Defense Department. The two amendments signal lawmakers’ growing concern about the Pentagons’ reliance on a single vendor for its cybersecurity products.
These regulations and associated guidance address a host of contracting officer responsibilities, including but not limited to, proposal evaluation, negotiations, price and/or cost analysis, data rights, and foreign acquisition ( e.g. , TAA). For this reason, procurement policy flow-downs cannot be one-sided.
For example, due to an increased focus on value with tighter margins, price disputes in LNG projects are becoming more likely and frequent. This contrasts with a more conciliatory approach leading to negotiated outcomes that had previously prevailed in Asia, as discussed further below. ICC, SIAC).
On August 5, 2024, the General Services Administration (GSA) took a step forward by publishing a final rule to “standardize and simplify the Multiple Award Schedule (MAS) clauses for economic price adjustments.” The GSAR, as currently written, limits when, how often, and by what percentages prices can be adjusted.
These regulations and associated guidance address a host of contracting officer responsibilities, including but not limited to, proposal evaluation, negotiations, price and/or cost analysis, data rights, and foreign acquisition ( e.g. , TAA). For this reason, procurement policy flow-downs cannot be one-sided.
Despite negotiations, GBO notified CAI that the agreement was terminated, alleging several breaches. In 2022, the arbitral tribunal ruled that GBO’s termination was unjustified and ordered compensation to CAI. In 2022, judicial scrutiny has been greatly heightened by Belokon v. Onix or Indagro ) to be set aside.
The FAR Council notes it is implementing SBA rules stretching from 2013 to 2022. Order Protests Under this proposed rule , the FAR will be updated to clarify requirements for size and socioeconomic status protests in connection with orders placed under multiple-award contracts. ” 13 CFR 121.1004. 13 CFR § 124.504.
23, 2022) provides new authority for some defense contractors and subcontractors to obtain price increases that address the impacts of inflation. The new authority is welcome relief for contractors and subcontractors holding fixed-price defense contracts, which typically do not allow a price increase due solely to inflation.
TELUS’ procurement team set out to reduce off-contract buying in order to avoid the erosion of negotiatedpricing and service levels of its suppliers. Canadian-based TELUS implements Ivalua’s EPS solution to digitize the entire end-user buying process.
With pre-approved products, GSA MAS provides agencies the following: Faster acquisitions by eliminating costly and time-consuming RFPs Pre-qualified contractors government can connect with Pre-negotiated terms and conditions, and competitive prices. To read more about this approach, check out this recent report. Get the Guide.
Jay Blindauer The bond yield curve inverted in October 2022. [1] 22] Plainly, approximately (22) months after October 2022 is on or about August to September 2024. Particularly, the Personal Consumption Expenditures Price Index (“PCE”) core inflation rate for January 2024 was 2.8%. [30] At least it has every time since 1968. [2]
The High Court challenge emanated from the Award that was issued in favour of SNGPL in August 2022, by Chantal-Aimée Doerries, KC (the ‘ Tribunal ’), against QATPL, a public sector company. These are important considerations for contracting parties negotiating the seat of arbitration in any contract. Under Section 3.6(a)
The Decision joins many other decisions recently issued by Chile’s highest Court that confirm solid and well-founded jurisprudence (see, for example, CS of July 27, 2023, Rol 133.313-2022; CS of October 5 of 2023, Rol No. 71,508-2022; CS of January 16, 2023, Rol 3,545-2022; CS of July 29, 2021, Rol 104,262-2020).
On December 30, 2022, the Supreme People’s Court of the People’s Republic of China (“SPC”) released its 36th batch of six guiding cases, all of which relate to the judicial review of arbitration awards. In determining the value of the bitcoins, the tribunal referred to the bitcoin price provided on the Okcoin website.
A discussion between economist Gustavo Franco (former President of the Brazilian Central Bank) and arbitrator Maurício Almeida Prado (MAP Negotiation and Arbitration, Partner) ensued, dealing with “Business Contracts and Dispute Resolution in Times of Instability,” particularly in the Brazilian context. 3409/21.2T8BRG.G1 [2022]).
However, this unfortunate fate was already sealed by the withdrawal notifications by France, Germany and Poland in December 2022, and the preceding decision of some Member States in October to not back the Commission’s proposal for a Council decision on the modernized ECT text for unspecified concerns over protection of fossil fuel investors.
In turn, this will lead to more consistent and sound negotiation and administration of MAS contracts. In the past, the regional structure gave rise to differing cultures, negotiation approaches, and interpretations of applicable regulations and solicitation provisions. Data context is critical to data driven decision making.
1] Similarly, with respect to goods imported under an inward processing regime, the Commission’s practice is inconsistent; it has excluded such imports in determining export price in some cases, while in other instances, it has included such imports. [2] Whether the ASCM permits this interpretation is not clear. [6]
However, as the pervasive abuses of direct awards under the emergency conditions generated by the covid pandemic evidenced in virtually all jurisdictions, dispensing with those requirements, checks and balances comes with a very high price tag for taxpayers in terms of corruption, favouritism, and wastage of public funds.
On November 20, tables include: GSA MAS PMO GSA Pricing Tools Ask the Med/Surg Supply BPAs Ask the SAM.gov PMO VA Federal Supply Schedule (FSS) To view the draft agenda for the governmentwide day, click here. October 28 : Webinar: 2024 (2025 FCPs) Public Law Pricing Update for Covered Drugs – Click here to register. 697 (2022).
Ongcangco stressed that ADR clauses in borderless contracts should be non-negotiable, as availing of traditional dispute resolutions is impossible. 8, Series of 2022 , which now allows for arbitration as a mechanism to resolve intra-corporate disputes (see a previous post on this development here ).
On 16 and 17 October 2022, the Center for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada held its X Arbitration Congress (“X CAM-CCBC Congress” or “Congress”) in Sao Paulo, Brazil. The same can be said in relation to regulatory changes and social demand for more aggressive measures in relation to green transition.
The program bridged and expanded the discussion that took place at a highly popular program featured in the 2022 edition of WAW on the influence of public international law (“PIL”) on ISDS (read the prior KAB coverage here ). Second, Professor Rivas addressed the potential direct influence of new ICJ judgments on ISDS decisions.
billion from 2022. OFPP’s supplier base dashboard shows 8,342 new small businesses worked in the federal market in 2023, up from 7,579 new entrants in 2022. But at the same time, SBA said in 2022 that agencies since 2010 have seen about a 40% decrease in the number of small businesses receiving prime contract awards.
trillion dollars in fiscal year 2022 which amounted to approximately 25% of total gross domestic product. Contractors should track and document any changes in workload to ensure that any increases in scope and associated cost or price adjustments are appropriately reflected in a contract modification. government spent $6.27
Off the Shelf : A Break Down of the Proposed CIRCIA Rule Townsend Bourne, Partner at Sheppard Mullin , joined Off the Shelf to share her insights regarding the Cybersecurity and Infrastructure Security Agency’s (CISA’s) proposed rule implementing the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA).
Department of Labor (“DoL”), Bureau of Labor Statistics (“BLS”), September 13 Consumer Price Index (“CPI”) Summary states that “[o]ver the last 12 months, the all items index increased 8.3 1] Similarly, the BLS September 14 Producer Price Index (“PPI”) Summary states that “[o]n an unadjusted basis, the index for final demand moved up 8.7
This ruling follows the Court’s August 2022 decision in Hydraulics Int’l (discussed in a previous Legal Update ) finding jurisdiction over a prototype OT competition when a follow-on production contract was contemplated. The new prices will be effective Jan 1, 2026.
View from Main Street: Size Recertification Confusion Updates on Timely Topics Impacting the Government Contracting Industry from Vice President of Acquisition Policy, Ken Dodds Historically, the length of government contracts did not exceed five years and size was determined at the time of offer (including price) for the contract.
This ruling follows the Court’s August 2022 decision in Hydraulics Int’l (discussed in a previous Legal Update ) finding jurisdiction over a prototype OT competition when a follow-on production contract was contemplated. The rule consolidates the four existing MAS EPA clauses into a single clause.
She added that some of the increase can be attributed to the CHIPS and Science Act, which was signed into law in August 2022 and provides $52 billion to support the domestic production of semiconductors. Pharmaceutical Pricing Summer Webinar Series Welcome to the “Pharmaceutical Pricing Fun in the Sun Summer Webinar Series”!
This ruling follows the Court’s August 2022 decision in Hydraulics Int’l (discussed in a previous Legal Update ) finding jurisdiction over a prototype OT competition when a follow-on production contract was contemplated. To register, click here. For any assistance with registration, please contact Madyson Whiting at mwhiting@thecgp.org.
The VA began using Login.gov as an SSO option in March 2022 and previously allowed veterans to create an account through ID.me. Pharmaceutical Pricing Summer Webinar Series Welcome to the “Pharmaceutical Pricing Fun in the Sun Summer Webinar Series”! is an external authentication provider. To register, click here.
In May 2022, the Court of Federal Claims ordered GSA to amend the solicitation and allow offerors to resubmit proposals. million megawatt hours annually through the eventual solicitation, which would amount to approximately 5 percent of the government’s fiscal year 2022 electricity consumption. GSA and DoD anticipate purchasing 2.7
Federal Acquisition Policy and Procedure (PAP) 2021-05, Evaluation of FSS Program Pricing , sets forth “comprehensive guidance regarding the evaluation of pricing throughout the life of a Federal Supply Schedule (FSS) program contract.” Pay a Fair and Reasonable Price ). Emphasis added.) See Section 2.
On Friday, March 1st, agencies funded under the Agriculture, Energy-Water, Military Construction-VA, and Transportation-HUD appropriations bills risked entering “shutdown mode,” as the previously negotiated extension was set to expire. Since the PACT Act was signed in August 2022, over 100,000 veterans have enrolled in VA healthcare.
The GSA and VA Ask the PMO tables were introduced during the 2022 Spring Training Conference, and included representatives from the Multiple Award Schedule (MAS) and Federal Supply Schedule (FSS) Programs. 31 The Equal Employment Opportunity (EEO) Commission has announced that EEO-1 Component 1 Data Collection for 2022 opens October 31.
Stakeholders must appreciate and understand that there is a nexus between requirements and price, especially for small businesses. Data context in assessing fair and reasonable pricing is foundational to sound acquisition business decisions. It is also a regulatory requirement. See FAR 15.405. Department of Homeland Security (“DHS”).
In fiscal 2022, the administration says small businesses received nearly $163 billion in federal contracts, of which a record of nearly $70 billion went to small disadvantaged businesses (SDBs). billion increase over 2022. The explanation should be reviewed by the agency small business specialist.” The company says almost 55.8%
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