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Everything posted by here_2_help

  1. 2nd Tier Sub Labor Violations

    While walking the dog this morning I was thinking I had misstated the chain of responsibility. Let me rephrase: The 1st tier subK will hold the 2nd tier subK accountable for noncompliance with contract terms. The 1st tier subK will have to try to recover as best it can from the 2nd tier subK. It may have to litigate. The prime will hold the 1st tier subK accountable for noncompliance with contract terms. The prime will have to try to recover as best it can from the 1st tier subK. It may have to litigate. The government will hold the prime accountable for the prime's noncompliance with contract terms, as well as for the 1st tier and 2nd tier subK compliance with the terms of the prime contract (i.e., flowdown clauses). In other words, the prime contractor is accountable to its government customer for compliance with contract terms and applicable statutes for the entire depth of its program supply chain. I'm happier with that summary of the situation.
  2. 2nd Tier Sub Labor Violations

    Generally speaking, the government will hold the prime accountable. The prime will hold the 1st tier subK accountable. The 1st tier subK will hold the 2nd tier subK accountable. And by "accountable" I mean responsible for remediating any damages caused and for making appropriate financial restitution.
  3. Where might one subscribe to your newsletter?
  4. New to Government Contracts

    This is a task that calls for somebody with experience in this area. You are not just writing an employee handbook; you are writing timecharging--and therefore billing--instructions. For example: emergency closures. When will contractor employees charge the contract and when will they charge overhead? When will they be told to use accumulated leave/PTO instead of doing either? Another example: wage determination ("prevailing wage") compliance. That's either Davis-Bacon Act or Service Contract Act compliance. Compliance can involve payments in lieu of benefits. If the contract wage determination changes, you have to pay the covered employees more, but you might be entitled to an equitable adjustment on the contract price. You really, really, really do not want to be guessing on these topics. Further, there's no shame in admitting you don't know everything about government contract compliance; hardly anybody does. We are all still learning, and even if we think we know something, the rules change frequently. You might be tops in HR matters such as hiring, retention, and firing--and still be unsure about many other areas such as proper timekeeping and labor charging, or compliance with D-B or SCA. Do yourself a favor. Convince your new company to hire SME expertise in some of these areas. It will be money well spent.
  5. I am serious! Let's start to track how long it takes contracting activities to definitize REAs after receipt, when a small business is involved. You can't improve what you can't measure, or so the Six Sigma folks tell me. I fully realize there will be completely valid reasons for not definitizing timely (however that's defined). But let's see what the data tells us. The data might surface anomalies so that HCAs can take appropriate remedial action. http://www.asbca.mil/Decisions/2016/60533 HCS, Inc. 9.20.16.pdf
  6. I'm sympathetic to the proposed "past performance" requirement. Turn-about is fair play, after all.
  7. By any remote chance, is the Class Deviation DARS 2018-O0009 applicable to your situation?
  8. I have to ask whether the sole source J&A was appropriate. It's been 20 (or more!) years. The item the vendor once provided has gone obsolete. Why is a sole source award appropriate? Can't another contractor design and provide the item? Of course, it still could be appropriate but, without knowing details, I am skeptical.
  9. It seems you are asking a commercial item provider to modify ("redesign") the commercial item, since it's been 20 years since it was last sold to the government and it's gone obsolete in that time. The cost of modification is being quoted separately from the cost of the item. You want the provider to support its estimated costs of modification. Is it possible that the contractor's accounting system simply cannot do so because it's systems are not set up for government accounting requirements? Is it possible that you are asking for something that the contractor literally cannot provide without tremendous (expensive) effort? While you think about those questions, consider: There are two variables to the NRE price. (1) quantity of hours by employee, and (2) price of each labor hour. You should be able to use technical analysis to determine the reasonableness of (1) and price analysis for (2), comparing the price per labor hour to other contractors (and non-contractors) in the same geographic location offering comparable services. In my opinion you do not need cost or pricing data from the contractor to perform your analysis of NRE price reasonableness. Or--and here's an out-of-the-box thought--you could go into the marketplace and see what items are now available, 20 years later, to perform the required function. Who knows what changes have been made in that time? And perhaps, if the item is electronic, it could be procured for a cheaper price today.
  10. I am large, I contain multitudes.
  11. Vern, Two points in rebuttal. 1. In the scenario described, the government property (laptop) was no longer in the contractor's possession. 2. Those FAR quotes are interesting, to be sure. But they are not binding on the contractor unless incorporated into the contract via clause. I believe in this case the OP stated that there were no Part 45 clauses in the contract.
  12. Vern, When title passes the laptop ceases being the contractor's property, and becomes the government's property. At that point, the government is responsible for protection against loss, theft, damage, destruction, etc. The contactor is no longer responsible for those things.
  13. Due respect to those debating bailment agreements and indemnification issues. It's been another of those WIFCON rabbit holes we fall into--which is not to say it's been without value. In my view the original question is simply answered. Title is transferred in accordance with the contract clause(s). Once title has transferred there is very little liability (for the contractor) with respect to how the laptop is used by the government. In particular the contractor is not liable for the theft of the laptop while in the government's control, because it is no longer the contractor's laptop. To the question "can a title be transferred to the government?" the forum's answer should have been a resounding "YES". To the related question of contractor liability for what happens after the government accepts the item, the forum's answer should have been "not a risk to worry about".
  14. If I were the contractor and you told me to enter into a lease with the customer for the duration of use, I would rather simply give the customer the laptop. It would be easier than accounting for that nightmare scenario.
  15. Vern, I disagree with your assertion that the Part 45 contract clauses have nothing to do with answering the OP's questions, quoted above. I agree with your other points. "Authority to acquire" is a tricky topic for contractors. I haven't been able to find much in the way of guidance on the topic. Certainly, Government Property people with whom I've worked in the past have been concerned when they discovered that a program acquired equipment that wasn't expressly called-out on the BOM or on a drawing somewhere.
  16. In my view it matters very much who is issuing the direction to the contractor. Is it the person with the Certificate of Appointment, acting within their authority, or is it somebody else? If somebody else, the contractor acts at some risk. https://www.justice.gov/usao-edva/pr/former-navy-comptroller-sentenced-accepting-illegal-gratuities
  17. Invoicing Prior to CLIN Start Date

    If you're a contractor and you don't have anything that prohibits you from billing the pre-contract costs in the final voucher then why are you hesitating? Believe me, if the government has an issue they will let you know quickly. Alternatively, check with your company's government accounting group. Ask how the costs were treated in the appropriate year's final billing rate proposal (also known as "incurred cost submission"). If the costs were claimed as being allowable on Schedule H, there you go. Presumably the costs were already audited by DCAA as part of finalizing that year's indirect rates. They say cash is king...
  18. Invoicing Prior to CLIN Start Date

    As I recall without doing research, there are court cases where where the decision turned on the difference between a contract's execution date and its effective date. If there is a significant amount of money at stake I suggest you find a good attorney who can advise you how those terms were interpreted by the courts.
  19. Michael11, Title would transfer as determined by the contract type, CLIN/SLIN structure, and funding. For example, if you have a reimbursable material/supply CLIN then (unless your contract says otherwise) title transfers when the cost is charged to the contract. If all CLINs are FFP then title transfers only as specified in the contract. Have you read your contract? Does it have any 52.245 clauses? If so, what does the clause say about title transfer? Hope this helps.
  20. Invoicing Prior to CLIN Start Date

    Vern is right with respect to the contract. To answer your question (which does not ask about the contract) the answer is "you won't find what you're looking for" because they don't exist. Quite to the contrary, as Vern gave you the rules on pre-contract costs already.
  21. Revenue Recognition

    You will not find the answer in the FAR. You will find the answer in authoritative AICPA guidance. SAB 104 or whatever the kids are calling it these days. The answer, as I recall from days long gone, is that you recognize revenue when you have performed all the actions required by the contract. From my point of view, you have performed all required actions when the item has arrived at the customer's receiving dock, since it was already inspected. However, I understand there's a risk that the item may have been damaged in transit, in which case ...? Whether you need "proof" that all actions were taken would seem to be a matter for your Controller and your external auditors to discuss. To reiterate: you will not find your answer in the FAR.
  22. "Throwing more money at the problem isn’t the answer and, in fact, may be a contributor to the problem. Require internal change through a clearer, straighter path on the acquisition highway; not more expensive pavement on today’s circuitous road." https://www.federaltimes.com/opinions/2018/01/02/yes-it-can-be-done-expediting-defense-acquisition/
  23. IDIQ VS. Requirements

    Thank you. (Sincerely.)
  24. IDIQ VS. Requirements

    I don't think prime contractors award enough Requirements subcontracts. I bet if they really looked at them, they might find some attractive features. Hmm, I feel an article a-brewin'.