Government Contracts Reduced Risk Through Commercial Item Contracting (5 532 3257)

Transcript

1 View the online version at http://us.practicallaw.com/5-532-3257 Government Contracts: Reduced Risk Through Commercial Item Contracting GEORGE W. ASH AND ERIN L. TOOMEY, FOLEY & LARDNER LLP, WITH PRACTICAL LAW COMMERCIAL TRANSACTIONS „ „ How to find and respond to commercial item solicitations from the This Practice Note explains the concept federal government. of commercial item contracting between The benefits and risks of commercial item contracting. „ „ suppliers of goods and services and the federal REFORMS ESTABLISHING COMMERCIAL ITEM CONTRACTING government. This Note includes a discussion of Before the passage of the Federal Acquisition Streamlining Act of the advantages of commercial item contracting 1994 (FASA), many commercial contractors refused to sell goods and services to the federal government based on the significant additional and how companies can benefit from this aspect costs and risks associated with government-unique specifications, of procurement reform. auditing requirements and other onerous terms and conditions. Even with the current budget cuts and evolving effects of sequestration, UNDER FASA the US government continues to spend a significant amount of money In October 1994, the government enacted FASA, which dramatically each year procuring goods and services. In fact, federal procurement changed the government's procurement philosophy. A key provision in spending on goods and services increased from $200 billion in fiscal FASA is the government's stated preference for the purchase of com - year 2000 to over $500 billion in fiscal year 2014. Moreover, the mercial items because the purchase of proven commercial items can: federal government procures a wide variety of goods and services „ „ Reduce the need for government funded research and development. from contractors, ranging from typical government purchases, such as weapons and aircraft, to what may be considered atypical purchases, „ „ Minimize acquisition lead-time. such as advertising, consulting, and construction services as well as Reduce the need for: „ „ mundane goods, such as office supplies, clothing and food. detailed design specifications; and „ „ The concerns of companies that are wary of entering into the federal expensive product testing. „ „ government marketplace, however, are well-founded. Government- - FASA further encourages government agencies to ensure that re unique auditing and accounting requirements, specifications and quirements are defined so that commercial items may be procured to standards and other requirements have dissuaded many commercial fulfill agency requirements. contractors from selling their goods and services to the federal government. However, due to acquisition reform in the 1990's and the REVISED FEDERAL ACQUISITION REGULATION PART 12 concept of commercial item contracting, the federal government can In 1995, the Federal Acquisition Regulation (FAR) council implemented now procure commercial supplies and services from contractors on FASA by revising FAR Part 12 to: terms and conditions similar to commercial contracts. „ Contain policies and procedures applicable only to commercial items. „ This Note discusses the federal government concept of commercial „ „ Create acquisition policies that more closely resemble the item contracting, its benefits and how contractors can exploit this commercial marketplace. aspect of procurement reform. It explains: „ „ Identify exemptions from government contracting laws and „ „ The statutory reforms in the 1990's that established commercial regulations for commercial item contracts. item contracting. What qualifies as a commercial item. „ „ Among other things, FAR Part 12 requires government agencies to: „ Required contract clauses applicable to commercial item contracts. „ Conduct market research to determine if commercial items are „ „ „ Government specific requirements that still apply to commercial „ available to satisfy the agency's requirements. item contracts. „ „ Buy commercial items when they are available to meet the agency's „ „ The differences between commercial item contracts and needs. traditional government contracts. © 2015 Thomson Reuters. All rights reserved.

2 Government Contracts: Reduced Risk Through Commercial Item Contracting „ A service procured in support of a commercial item good if the „ „ Require prime contractors and subcontractors at all tiers to „ supplier provides similar services at the same time to the general incorporate, to the maximum extent practicable, commercial items as components of items supplied to the government. public under terms and conditions similar to those offered to the federal government, including the following support services: 48 C.F.R. § 12.101(a) , ( .) (c) and (b) „ „ installation; WHAT QUALIFIES AS A COMMERCIAL ITEM? maintenance; „ „ The definition of a commercial item is broad and addresses goods repair; and „ „ and services differently. It also covers the combination of goods and „ training. „ services that are customarily combined and sold in combination to .) 48 C.F.R. § 2.101(5) ( ). 48 C.F.R. § 2.101(4) the general public ( While goods can qualify as commercial items regardless of how they DEFINITION OF COMMERCIAL ITEM GOOD are priced, services other than those under Section 2.101(5) of the must have established catalog or market prices to qualify as FAR defines a commercial item good as: Section 2.101 of the FAR commercial items. „ „ Any item: "OF A TYPE" SIGNIFICANTLY BROADENS THE DEFINITION OF „ „ other than real property (land); COMMERCIAL ITEM „ customarily used for nongovernmental purposes; or „ of a type It is significant that for both goods and services, to qualify as a that has been either sold, leased or licensed (or offered for sale, „ „ commercial item, a contractor need only demonstrate that the goods or lease or license) to the general public. services offered to the government are of a type offered for sale or sold 48 C.F.R. § 2.101(1) ( .) does not to the general public. This require a contractor to show either: Any item that evolved from an item described in Section 2.101(1) „ „ The identical item is offered or sold to the general public. „ „ through advances in technology or performance and of the FAR „ The contractor itself offers or sells the item to the general public. „ is not yet available in the commercial marketplace, but will be in time to satisfy the delivery requirements under a government The FAR does not, however, clearly define the point at which the ). 48 C.F.R. § 2.101(2) solicitation ( differences between the commercial product and the product offered Any item that would be considered a commercial item as defined „ „ to the government are so significant to breach the of a type standard. but for: Section 2.101(1) or (2) of the FAR in COMMERCIAL ITEM PRICING „ „ modifications of a type customarily available in the commercial marketplace; or To get FAR Part 12 preferential treatment, the FAR requires commercial item contracts to be either: „ „ minor modifications not customarily available in the commercial marketplace made to meet federal government requirements. Firm-fixed-price. „ „ .) 48 C.F.R. § 2.101(3) ( „ „ Fixed price with economic price adjustment based on: A commercial item good includes any item that is commercially established prices; or „ „ available off-the-shelf (COTS). A COTS item is any supply item, „ „ cost indexes of labor or material. including construction material, that is: ( 48 C.F.R. § 12.207(a) .) „ A commercial item as defined in Section 2.101(1) of the FAR. „ In limited circumstances, a contractor may receive a time-and-materials „ „ Sold in substantial quantities in the commercial marketplace. or a labor-hour commercial item contract, but various higher level Offered to the federal government, under a contract or subcontract „ „ government approvals are required for these contracts ( 48 C.F.R. § at any tier, without modification, in the same form as it is sold in ). For both commercial item goods and services, before issuing 12.207(b) the commercial marketplace. a commercial item prime contract or subcontract, the government or 48 C.F.R. § 2.101 .) ( higher-tiered contractor must use a price analysis to determine whether the contractor's price is fair and reasonable. However, this price analysis However, while a COTS item is a commercial item, an item does not involve an examination of the contractor's separate cost does not need to be a COTS item to be considered a commercial item. 48 elements or proposed profit used to develop the firm-fixed-price ( DEFINITION OF COMMERCIAL ITEM SERVICE C.F.R. § 15.403-3(c) ). For more information see Box, Price Analysis for . Commercial Item Contracts A commercial item service is: Any service: „ „ COMMERCIAL ITEM PRIME CONTRACTS AND SUBCONTRACTS: REQUIRED CONTRACT CLAUSES of a type „ „ offered and sold competitively in substantial quantities in the commercial marketplace; Commercial item prime contractors and subcontractors are only „ „ based on established catalog or market prices; required to accept a small set of FAR and agency supplement clauses in their contracts. Most federal agencies have their own FAR supple - „ „ for specific tasks performed or specific tasks to be achieved; and ments. For example, the Department of Defense FAR Supplement „ „ under standard commercial terms and conditions. (DFARS) applies to sales to the Department of Defense (DoD). .) 48 C.F.R. § 2.101(6) ( © 2015 Thomson Reuters. All rights reserved. 2

3 Government Contracts: Reduced Risk Through Commercial Item Contracting FAR Subpart 12.5 provides a laundry list of laws that: clauses for commercial item subcontracts issued under non-commercial item prime contracts are listed in Section 52.244-6(c) of the FAR . „ Are not applicable to prime contracts for the acquisition of „ commercial items. The lists of clauses in and 52.244-6(c) of the FAR : Sections 52.212-5(e) „ „ Are not applicable to subcontracts, at any tier, for the acquisition „ „ Are significantly shorter than those required for non-commercial of commercial items. item subcontracts. „ „ Have been amended to eliminate or modify their applicability „ Permit the higher-tiered contractor to include in the commercial „ to either prime contracts or subcontracts for the acquisition of item subcontract additional clauses necessary to satisfy its commercial items. contractual obligations (for example, a changes clause, a stop work order clause and a termination for convenience clause). .) and 48 C.F.R. §§ 12.500 ( 12.503 - 12.505 UNIQUE GOVERNMENT CONTRACTING REQUIREMENTS REQUIRED CONTRACT CLAUSES FOR PRIME CONTRACTS AND SOLICITATIONS THAT STILL APPLY Even commercial item contractors must comply with a limited Commercial item prime contracts and solicitations must incorporate number of federal government-unique requirements that apply to all only the following four primary FAR clauses: government contractors, including: „ „ FAR Clause 52.212-1, Instructions to Offerors. Provides a single, „ „ Those aimed at achieving the government's socioeconomic streamlined set of instructions to be used when soliciting offers for policies (see Equal Employment Opportunity Contract Clauses ). ). commercial items ( 48 C.F.R. § 12.301(b)(1) „ „ Import and export restrictions and anti-corruption regulations (see „ FAR Clause 52.212-3, Offeror Representations and „ Additional Requirements ). Certifications. Provides a single, consolidated list of representations and certifications for the acquisition of commercial EQUAL EMPLOYMENT OPPORTUNITY CONTRACT CLAUSES 48 C.F.R. § 12.301(b)(2) ). items ( Federal government contractors must promote equal opportunity „ „ FAR Clause 52.212-4, Contract Terms and Conditions. as required by the Equal Employment Opportunity (EEO) contract Includes terms and conditions which are, to the maximum extent clauses if the contractor receives more than $10,000 per year in practicable, consistent with customary commercial practices ( 48 government contract awards. The EEO contract clauses implement: ). Contractors may: C.F.R. § 12.301(b)(3) „ request to have some of these terms and conditions tailored to „ and its implementing Executive Order 11246 (September 24, 1965) „ „ adapt to the market conditions for a particular transaction (for regulations. example, the warranty, risk of loss, and termination clauses) ( 48 „ The Vietnam Era Veterans' Readjustment Assistance Act of „ ); and C.F.R. § 12.302(a) 4212 1972 ( 38 U.S.C. § 4211 and ), the Veterans Employment suggest additional terms that are consistent with that particular „ „ Opportunities Act of 1998 ( Public Law 105-339 ), the Jobs for ). industry ( 48 C.F.R. § 12.302(c) Executive Order 11701 (January ), Public Law 107-288 Veterans Act ( and their implementing regulations. 24, 1973) Seven out of the 22 paragraphs of this clause implement statutory requirements and therefore cannot be tailored, including the „ „ 29 U.S.C § 793 ), Section 503 of the Rehabilitation Act of 1973 ( paragraphs on assignments, disputes, payment, invoice, unauthorized and their implementing Executive Order 11758 (January 15, 1974) obligations and two paragraphs on legally mandated compliance regulations. ). 48 C.F.R. § 12.302(b) matters ( The Department of Labor monitors and enforces contractors' „ FAR Clause 52.212-5, Contract Terms and Conditions Required „ compliance with these contract clauses through its Office of Federal to Implement Statutes or Executive Orders. Incorporates by Contract Compliance Programs (OFCCP). These contract clauses reference only those paragraphs required to implement provisions impose obligations on government contractors that deviate from the of law or executive orders applicable to the acquisition of practices of an ordinary commercial contractor. These include, but ). FAR Clause 52.212-5 48 C.F.R. § 12.301(b)(4) commercial items ( are not limited to: has a check-the-box format, for which contracting officers must Requiring contractors to file annual compliance reports. „ „ check off only those clauses that apply to the prime contract and Requiring contractors to create an Affirmative Action Program, if „ „ contractors are only required to comply with the clauses that have the contractor: been checked off. „ „ has 50 or more employees; and REQUIRED CONTRACT CLAUSES FOR COMMERCIAL ITEM a prime contract or subcontract of $50,000 or more (or bills „ „ SUBCONTRACTS of lading that can be expected to total $50,000 or more in a Even if a higher-tiered contractor has a non-commercial item prime 12-month period). contract, the higher-tiered contractor can and is encouraged to issue .) 41 C.F.R. § 60-2.1 ( commercial item subcontracts to the maximum extent practicable Permitting the OFCCP to audit the contractor's personnel records. „ „ ). The required clauses for ( 48 C.F.R. §§ 44.402(a) and 52.244-6(b) commercial item subcontracts issued under commercial item prime „ Regulating how a contractor posts employment opportunities. „ . The required Section 52.212-5(e) of the FAR contracts are listed in © 2015 Thomson Reuters. All rights reserved. 3

4 Government Contracts: Reduced Risk Through Commercial Item Contracting ADDITIONAL REQUIREMENTS „ authorizes private citizens with evidence of fraud against the „ government to file lawsuits in their own name (on behalf of In addition to the EEO contract clauses, commercial item contractors themselves and the government) and then keep a significant must also comply with: share of the government's recovery (a qui tam action) ( 31 U.S.C. § „ All applicable import and export restrictions (for more information „ actions are often brought by disgruntled current Qui tam ). 3730 on export laws, see Complying with US Export Regulations Checklist or former employees who are aware of the company's business (http://us.practicallaw.com/1-520-0908) and Practice Notes, practices in performing its government contracts. Whistleblowers Export Regulation Laws: Overview (http://us.practicallaw.com/1- (referred to as relators) often are rewarded with 15% to 25% of 521-6990) and Export Regulation: US Antiboycott Laws (http:// ); and 31 U.S.C. § 3730 the total recovery from the company ( us.practicallaw.com/3-509-2210) ). protects employees from retaliation by their employers. „ „ „ Restrictions on recruiting and hiring former government employees. „ ( 31 U.S.C. §§ 3729 - 3733 .) 41 U.S.C. § 51 „ „ The Anti-Kickback Act of 1986 ( ). Government contractors can address all of these government „ Lobbying restrictions. „ requirements with an effective compliance program. Implementing Prohibitions on human trafficking. „ „ - appropriate policies and procedures to comply with these require „ „ In some instances, laws that impose a preference for domestic ments has a minimal impact on the contractor's business practices sources or materials. compared to the efforts required to comply with traditional govern - ment contract requirements. „ If the contract exceeds $5 million and has a period of performance „ longer than 120 days, a requirement to have a written code of HOW COMMERCIAL ITEM CONTRACTS DIFFER FROM ). Even if not FAR Clause 52.203-13 business ethics and conduct ( TRADITIONAL GOVERNMENT CONTRACTS required, contractors should consider implementing such a code and Even though commercial item contractors must comply with certain a compliance program as a best practice for government contractors. Unique Government Contracting government requirements (see A requirement for prime contractors and first-tier subcontractors „ „ ), they are from many of exempt Requirements that Still Apply to report the names and total compensation of the five most highly the traditional government contract requirements that increase compensated executives for the contractor's preceding fiscal year, if: administrative costs and risk, such as: „ the contractor receives 80% or more of its annual gross revenues „ „ „ The Truth in Negotiations Act (TINA).This requires a contractor to from federal contracts, subcontracts, loans, grants, subgrants, disclose to the government all of its cost or pricing data as of the and cooperative agreements; date of price agreement and certify that its disclosure is current, „ „ the contractor receives $25 million or more in annual gross ). 41 U.S.C. § 254b and accurate, and complete ( 10 U.S.C. § 2306a revenues from federal contracts, subcontracts, loans, grants, Box, Truth in Negotiations Act . For more information on TINA, see subgrants, and cooperative agreements; and - Cost Accounting Standards and related audits. The federal gov „ „ „ „ the public does not already have access to this information - ernment's Cost Accounting Standards (CAS) govern the measure through SEC or IRS reports. - ment, timing and allocability of costs charged to certain negoti and FAR Clause 52.204-10. 4.1403 - 48 C.F.R. §§ 4.1400 ) ( ated government contracts. The CAS rules and regulations impose major accounting requirements on government contractors and FRAUD ENFORCEMENT MECHANISMS require the negotiation of impacts of changes to the contractor's All government contractors are subject to the federal government's 9903.307 - 48 C.F.R. §§ 9903.301 ). For cost accounting practices ( procurement fraud enforcement mechanisms, which come in a variety more information on CAS, see Box, Cost Accounting Standards . of forms. The government can prosecute procurement fraud under Traditional government terms and conditions pertaining to „ „ several criminal and civil statutes, including: ). intellectual property (see Intellectual Property Rights „ „ The False Statements Act. The government uses this statute Contract clauses allowing the federal government to unilaterally „ „ most frequently to address all categories of procurement fraud ( 18 ). Changes Clauses make changes to the contract (see U.S.C. § 1001 ). It prohibits lying (knowingly and willfully making a While exempt from the above requirements, commercial item false statement) to the government. A statement made under this contractors and subcontractors can contractually agree to be bound by act may be: them. They should therefore be vigilant in negotiating their government „ „ oral; contracts to confirm that these requirements are not included. „ „ written; INTELLECTUAL PROPERTY RIGHTS „ sworn; or „ The FAR greatly reduces the intellectual property rights the government „ „ unsworn. obtains under a commercial item prime contract or subcontract, „ The Civil False Claims Act. This act: „ allowing the contractor to more easily retain important rights. „ „ provides for treble damages and penalties (generally up to an Non-commercial Items additional $11,000 per claim) for the submission of false claims by either a prime contractor or subcontractor to any federal For non-commercial item prime contracts and subcontracts, the agency or entity using federal funds to pay these claims; government receives rights in technical data and computer software © 2015 Thomson Reuters. All rights reserved. 4

5 Government Contracts: Reduced Risk Through Commercial Item Contracting schedule as a result of the change, the contractor: delivered to the government which were developed using government FAR Clause 52.227-14 funds ( ). In non-commercial item contracts, to limit „ Can seek an equitable adjustment to either or both: „ the rights the government receives in both technical data and software, the the contract price; or „ „ contractor bears the burden of demonstrating that the technical data or the schedule. „ „ computer software was developed exclusively at private expense. Further, the non-commercial item FAR technical data and computer software „ Must timely submit the necessary documents to support the „ clauses require contractors to properly mark with restrictive legends the equitable adjustment. technical data and computer software delivered to the government in „ Must perform the government-directed change, even if the „ which the contractor wants to limit the government's rights. contractor and the government have not agreed on the applicable equitable adjustment. The contractor's failure to properly mark the technical data or com - puter software delivered to the government can lead to the govern - Should negotiate and execute a contract modification for these „ „ ment's receipt of an unlimited rights license in this data or software, changes. which permits the government to share it with the contractor's Can seek administrative relief under the disputes clause ( „ „ FAR Bell Helicopter Textron, ASBCA No. 21192 85-2 BCA , competitors (see ), which, however, is often a lengthy and bur Clause 52.233-1 - ). However, the FAR recognizes that strict compliance ¶ 18415 (1985) densome process, if an agreement with the government on the with these provisions would discourage commercial item contractors amount or scope of the equitable adjustment cannot be reached. - from government procurement and contains provisions that signifi Commercial Items cantly reduce the administrative burden. For commercial items, however, FAR Part 12 provides that contract Commercial Items changes must be mutually agreed between the contractor and For commercial items, FAR Part 12 provides that: the government. Before accepting the change, the contractor can negotiate with the government regarding the impact of the change „ „ The government acquires technical data and the rights in that on the price, schedule, or both, and execute a bilateral contract data customarily provided to the public with a commercial item modification accordingly. If it cannot agree with the government, the or process ( 48 C.F.R. § 12.211 ). Therefore, the contractor is only contractor can reject the change. obligated to grant the government its standard commercial license. „ A presumption that technical data delivered under a contract for „ FINDING AND RESPONDING TO FEDERAL GOVERNMENT commercial items was developed exclusively at private expense COMMERCIAL ITEM SOLICITATIONS ). This presumption: ( 48 C.F.R. § 12.211 Suppliers can identify a commercial item solicitation or advocate for does not apply to DoD acquisitions of major systems or „ „ a federal agency to issue a commercial item solicitation in a variety of subsystems or components; and ways. For example, prospective government contractors can: „ „ still applies to DoD acquisitions of major systems or subsystems „ „ Find opportunities on the Federal Business Opportunities website. ). DFARS § 227.7103-13 or their components that qualify as COTS ( The Federal Business Opportunities website enables contractors Regarding computer software, the government acquires commercial to search for solicitations and contract awards, for example, by: computer software or documentation under licenses customarily „ „ agency; provided to the public if these licenses: item code; or „ „ Are consistent with federal law. „ „ „ keyword. „ Satisfy the federal government's needs. „ „ „ Find opportunities and additional information on the „ Acquisition Central Acquisition Central website. The website .) 48 C.F.R. § 12.212 ( contains information not only on opportunities, but also The contractor is not required to provide the government with any aggregates information on available government contracting other rights in the computer software or documentation unless resources for contractors. mutually agreed between the contractor and the government. Suppliers can network „ Network with US government officials. „ For both technical data and computer software that receive commercial with federal government officials to: item treatment, the requirement that contractors properly mark with „ understand government requirements; „ specific restrictive legends the technical data and computer software in market commercial goods and services; and „ „ which the contractor wants to limit the government's rights is eliminated. „ help shape future government needs. „ CHANGES CLAUSES „ „ Suppliers can hire lobbyists to meet with Work with lobbyists. Non-commercial Items government officials and advocate on their behalf. „ Ensure that the solicitation contemplates the award of a FAR „ Another traditional government contracting requirement is the A contractor can enter into a Part 12 commercial item contract. government's ability to unilaterally direct changes to the contract in variety of different types of contracts with the federal government. specified areas, within the general scope of the contract ( FAR Clauses If the transaction involves commercial items, suppliers should ). If the government makes this change, the contractor 52.243.1-4 ensure that the solicitation contemplates the award of a FAR must continue performing the contract as changed. If the contractor Part 12 commercial item prime contract. If a solicitation is too experiences an increase in the cost of performance or a delay in the © 2015 Thomson Reuters. All rights reserved. 5

6 Government Contracts: Reduced Risk Through Commercial Item Contracting Government Contracts: Reduced Risk Through Commercial Item Contracting „ „ Published price lists. restrictive, before the deadline to submit proposals, a prospective contractor can seek the re-solicitation of the goods or services on a „ „ Independent government cost estimates. commercial item basis and file a bid protest with: „ Prices obtained from market research. „ „ Practice Note, Government „ the contracting government agency (see .) 48 C.F.R. § 15.404-1(b) ( Contracts: Agency-level Bid Protests (http://us.practicallaw. ); com/2-561-9585) THE TRUTH IN NEGOTIATIONS ACT Practice Note, „ „ the US Government Accountability Office (see TINA requires a contractor to: Government Contracts: GAO Bid Protests (http://us.practicallaw. „ „ Disclose to the government all of its cost or pricing data as of the com/2-581-7651) ); or date of the price agreement. „ „ the Court of Federal Claims (see Practice Note, Government Contracts: Certify that its disclosure is current, accurate and complete. „ „ COFC Bid Protests (http://us.practicallaw.com/1-583-9427) ). .) 48 C.F.R. §§ 33.101 ( - 33.106 and 10 U.S.C § 2306a ( .) 41 U.S.C. § 254 Before suppliers can submit proposals in response to government Cost or pricing data is defined broadly as all facts that, as of the date solicitations, they must fulfill a few administrative requirements, of price agreement, prudent buyers and sellers would reasonably including: ). If the FAR 2.101 expect to affect price negotiations significantly ( government later determines that the cost or pricing data disclosed (SAM). „ „ Registering in the System for Award Management was not current, accurate and complete (defective pricing), the „ „ Filling out representations and certifications in SAM. government is entitled to a price reduction to exclude the amount by which the price was increased because of the defective data, BENEFITS AND RISKS OF COMMERCIAL ITEM CONTRACTING plus interest. There is also the possibility of double recovery by the From a practical standpoint, taking advantage of FAR Part 12 makes government if the contractor knowingly submitted defective data or sense for the government, prime contractors and subcontractors. Prime omitted data. In extreme cases the contractor may face possible Civil contractors potentially have a larger pool of suppliers willing to accept False Claims Act liability or criminal false statement allegations for government subcontracts if they are more like commercial sales, and with a fraudulent or false certification. Commercial item prime contracts fewer requirements, the costs are lower. Subcontractors benefit by having: and subcontracts are exempt from TINA. „ Less onerous contract clauses. „ COST ACCOUNTING STANDARDS Reduced compliance risks. „ „ CAS govern the measurement, timing and allocability of costs charged to „ „ The ability to contract on more typical commercial terms. certain negotiated government contracts. The CAS rules and regulations: The government, prime contractors and subcontractors all benefit from: „ Impose major accounting requirements on government contractors. „ „ „ Lower prices. „ „ Require the negotiation of impacts of changes to the contractor's „ „ Fewer compliance-related requirements. cost accounting practices. „ „ Reduced administrative costs. Violations of these accounting principles or the contractor's disclosed More supply sources. „ „ cost accounting practices can result in: „ „ Repricing of contracts. That is not to say, however, that no risks exist in becoming a commercial Unique Government Contracting Require - item government contractor (see „ „ Civil False Claims Act liability. ). To mitigate these risks, government contractors can: ments that Still Apply Criminal charges. „ „ „ Develop and implement an effective compliance program to „ Firm-fixed-price and fixed price with economic price adjustment avoid liability under the False Claims Act or violations of the False prime contracts and subcontracts for the acquisition of commercial Statements Act. ). items are exempt from CAS ( 48 C.F.R. § 9903.201-1(b)(6) „ „ Take appropriate corrective action when they discover a real or potential violation. ABOUT PRACTICAL LAW „ „ Limit their contracts with the government to commercial item contracts. Practical Law provides legal know-how that gives lawyers a better starting point. Our expert team of attorney editors creates and maintains thousands of PRICE ANALYSIS FOR COMMERCIAL ITEM CONTRACTS up-to-date, practical resources across all major practice areas. We go beyond To award a commercial item contract, the federal government must primary law and traditional legal research to give you the resources needed to conduct a price analysis to determine that the contract price is fair practice more efficiently, improve client service and add more value. and reasonable. In a price analysis, the government must compare the contractor's proposed price to other information available to the If you are not currently a subscriber, we invite you to take a trial of our online government, such as: . For more information or to schedule training, practicallaw.com services at [email protected] or e-mail 888.529.6397 . call „ „ Other offers submitted in response to a solicitation. „ Previous prices for the same or similar items paid by: „ 10-15 the government; or „ „ © 2015 Thomson Reuters. All rights reserved. Use of Practical Law websites and services is subject to the Terms of Use (http://us.practicallaw.com/2-383-6690) and Privacy Policy (http://us.practicallaw.com/8-383-6692). non-government customers. „ „ 6 6

Related documents

RIE Tenant List By Docket Number

RIE Tenant List By Docket Number

SCRIE TENANTS LIST ~ By Docket Number ~ Borough of Bronx SCRIE in the last year; it includes tenants that have a lease expiration date equal or who have received • This report displays information on ...

More info »
final.dvi

final.dvi

AS Relationships, Customer Cones, and Validation Matthew Luckie Bradley Huffaker Amogh Dhamdhere CAIDA / UC San Diego CAIDA / UC San Diego CAIDA / UC San Diego [email protected] [email protected] [email protected]

More info »
SIZE CHARTS

SIZE CHARTS

CUTTER & BUCK MEN'S SIZE CHARTS CHARTS SIZE How to Measure your Body for Size How to Measure your Body for Size point Measure around your neck NECK: at the a where collar neck. shirt the encircles ban...

More info »
CityNT2019TentRoll 1

CityNT2019TentRoll 1

STATE OF NEW YORK 2 0 1 9 T E N T A T I V E A S S E S S M E N T R O L L PAGE 1 VALUATION DATE-JUL 01, 2018 COUNTY - Niagara T A X A B L E SECTION OF THE ROLL - 1 CITY - North Tonawanda TAX MAP NUMBER ...

More info »
435 441 458 467r e

435 441 458 467r e

WT/DS435/R, WT/DS441/R WT/DS458/R, WT/DS467/R 28 June 2018 Page: (18 - 1/884 4061 ) Original: English AUSTRALIA CERTAIN MEASURES CON CERNING TRADEMARKS, – PACKAGING IONS AND OTHER PLAIN GEOGRAPHICAL I...

More info »
Microsoft Word   Out of State Criminal History Check Resource List

Microsoft Word Out of State Criminal History Check Resource List

Out-of-State Criminal History Check Resource List For Out of State background checks related to Child Care Licens ing Background Checks, use the following resource: Child Care Subsidy Criminal Bac kgr...

More info »
ERG2016

ERG2016

2016 A guidebook intended for use by first responders A guidebook intended for use by first responders transportation incident during the initial phase of a during the initial phase of a transportatio...

More info »
NMCRS88

NMCRS88

CUTTER & BUCK LADIES ' SIZE CHARTS SIZE CHARTS How to Measure your Body for Size How to Measure your Body for Size at where Measure around your neck NECK: the point a band collar neck. shirt the encir...

More info »
u7112 connectplus directories 2019

u7112 connectplus directories 2019

UCare Connect + Medicare Provider and Pharmacy Directory Introduction This Provider and Pharmacy Directory includes information about the provider and pharmacy types in UCare Connect + Medicare and li...

More info »
U7112 UCARE CONNECT + MEDICARE PROVIDERDIR MAY 2019 DATA.sv

U7112 UCARE CONNECT + MEDICARE PROVIDERDIR MAY 2019 DATA.sv

UCare Connect + Medicare Provider and Pharmacy Directory Introduction This Provider and Pharmacy Directory includes information about the provider and pharmacy types in UCare Connect + Medicare and li...

More info »
PassIssuanceList

PassIssuanceList

FEDERAL RECREATION AREAS WHERE INTERAGENCY PASSES ARE ISSUED IMPORTANT! This list is not comprehensive and may include errors; some Federal recreation sites are only open part-time or may change what ...

More info »
ac3259s fe

ac3259s fe

AC 3259- /12) S (Effective 1 STATEMENT OF INCIDENTAL AND State of TRANSPORTATION EXPENSES New York – Submit with expense report Use this form only when additional space is required to submit all neces...

More info »
Library of Congress Classification Outline: Class D   World History and History of Europe, Asia, Africa, Australia, New Zealand, etc.

Library of Congress Classification Outline: Class D World History and History of Europe, Asia, Africa, Australia, New Zealand, etc.

LIBRARY OF CONGRESS CLASSIFICATION OUTLINE CLASS D - WORLD HISTORY AND HISTORY OF EUROPE, ASIA, AFRICA, AUSTRALIA, NEW ZEALAND, ETC. (Click each subclass for details) Subclass D History (General) Subc...

More info »
735 6037

735 6037

ۂ ۂ )2 5 $*(1&< 86( 21/< $&&2817 5(&25',148,5< DM V  180%(5 $&&2817 '(3$570(172)75$163257$7,21 $&&2817$33/,&$7,21  '5,9(5$1'027259(+,&/(6(59,&(6 7<3(  /$1$ $9( 1( 6$/(0 25(*21...

More info »
A/HRC/39/CRP.2 in Word

A/HRC/39/CRP.2 in Word

/HRC/39/CRP.2 A September 2018 17 only English Human Rights Council Thirty ninth session - 10 28 September 2018 – Agenda item 4 Human rights situations that require the Council’s attention Report of t...

More info »
Price Book: Canvas Office Landscape Wall and Private Office

Price Book: Canvas Office Landscape Wall and Private Office

Price Book Y Canvas Office Landscape ® Prices effective January 7, 2019 Published May 2019 Wall and Private Office page 2 Introduction Canvas Office 3 Landscape Office Wall and Private 5 Walls Work Su...

More info »
TPM Main Part 3 Commands v1.2 rev116 01032011

TPM Main Part 3 Commands v1.2 rev116 01032011

1 2 1 2 3 4 5 6 7 8 TPM Main Part 3 Commands 9 10 Specification Version 1.2 11 Level 2 Revision 116 12 1 March 2011 13 TCG Published 14 15 16 17 Contact: [email protected] 18 19 20 21 22...

More info »
dywweeklyreport

dywweeklyreport

WEEK OF MAY 6 - 10, 2019 DAIRY MARKET NEWS VOLUME 86, REPORT 19 DAIRY MARKET NEWS AT A GLANCE CME GROUP CASH MARKETS (5/10) Atlantic output is increasing. Milk output - from farm to farm, but Mid BUTT...

More info »
TOSCA Simple Profile in YAML Version 1.1

TOSCA Simple Profile in YAML Version 1.1

mple Profile in YAML Version 1.1 TOSCA Si OASIS Standard 30 January 2018 Specification URIs v ersion : This Profile - Simple - YAML/v1.1/os/TOSCA - - Simple - open.org/tosca/TOSCA - http://docs.oasis ...

More info »
cfpb consumer reporting companies list

cfpb consumer reporting companies list

2019 ROTECTION BUREAU | CONSUMER FINANCIAL P List of Consumer Reporting Companies

More info »