CHARLES E. RUMBAUGH
Arbitrator/Mediator
(310) 373-1981 / FAX (310) 373-4182
(888) ADROffice (toll free)
e-mail: ADROffice@Rumbaugh.net
P.O. Box 2636
Rolling Hills, California 90274
P.O. Box 2095
Burlingame, California 94011
August
22, 2003, Regulatory
Update
Recent Regulatory matters that may be of interest
since the last Update include---
·
Acting Under Secretary
of Defense Michael W. Wynne issued a memorandum July 29, 2003, on
“Policy for Unique Identification (UID) of Tangible
Items….” This new
policy will be embedded in an interim rule intended for release
“before October 1, 2003,” and will be effective for
solicitations issued on/after January 1, 2004.
Also released was a “DoD Guide to Uniquely Identifying
Tangible Items—Assuring Valuation, Accountability and Control of
Government Property (Version 1.0, July 2003).” Unique item identification will be required if
Ø
“The acquisition cost
is $5,000 or more,
Ø
It is either a serially
managed, mission essential or controlled inventory piece of
equipment or a reparable item, or a consumable item or material
where permanent identification is required,
Ø
It is a component of a
delivered item, if the program manager has determined that unique
identification is required, or
Ø
A UID or a DoD-recognized
UID equivalent is available.”
COMMENT: How will this impact you?
·
The
August 20, 2003, Federal Register published an “advance
notice of proposed rulemaking” whereby OFPP “invites public
comments on proposed amendments to the CAS ‘Cost accounting
standard for composition and measurement of pension cost,’ and
‘Accounting for the cost of deferred compensation’….
This proposal is based upon continuing research performed by
the staff of the Cost Accounting Standards Board, public comments
received in response to the (prior public notices), and
deliberations of the Board….
The Board has also determined that specific guidance is
required regarding the measurement of ESOP contributions and the
assignment of ESOP costs to cost accounting periods.
Specifically, the Board believes that the contractor's ESOP
cost should be measured by the contribution made to the ESOP, not by
the value of compensation received by the employee.
In addition, the Board believes that these costs should be
systematically assigned to the cost accounting periods in which ESOP
awards are made to employees.”
Comments are due on/before November 18, 2003.
·
The
August 21, 2003, Federal Register
published a proposed DFARS change “to eliminate
requirements for contract administration offices to perform
production surveillance on contractors that have only Criticality
Designator C (low-urgency) contracts. This change will permit
contract administration offices to devote more resources to critical
and high-risk contracts.” Comments are due on/before October 20, 2003.
·
The
Department of Labor noticed on August 15, 2003, a “substantial”
updating/revision to its acquisition regulations. Comments are due on/before October 20, 2003.
·
On
August 15, 2003, Deidre Lee, Director Defense Procurement and
Acquisition Policy, issued a memorandum on “Federal Prison
Industries, Inc.” with an attachment which “updates contracting
officers on recent FAR and DFARS changes that allow increased
competition and provide additional small business
opportunities when purchasing items typically reserved for
Federal Prison Industries, Inc.”
·
The
DoJ announced on August 20, 2003, that a proposed Raytheon/DRS
Technologies teaming agreement had to be revised so that the
proposed alliance for the out-years “would not apply” and, thus,
did not restrict future
competition.
COMMENT: Continue to have your counsel review all teaming
arrangements and “consider” the “safe-harbor” provided by
DoJ approval—as was accomplished by these contractors!
·
AFMC
has reinstated its Mechanization of Contract Administration Services
(MOCAS) Contract Closeout Newsletter at http://www.afmc-pub.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpa/mocas/vol2iss1.doc.
And, the Air Force has posted Performance Based Service
Acquisition powerpoint slides from a recent presentation at
<SAF/AQCP
Briefing, AUG 03>
·
NCMA
(Port Hueneme,
California area) is planning an excellent seminar September 2nd
on “Procurement Transformation” with speakers that include David
Drabkin, Mark Lumer, LtCol Rene Rendon, and
Janice Smets. This full
day seminar has a $50 charge. Registration info can be obtained by
sending an email to jrsmets@earthlink.net
·
COMMENT: Finally, the recent “wave” of electrical
brown/blackouts may necessitate contractors and
contracting officers to re-review the Defense Priority Allocation
System (DPAS). See
the January 2001 Update on the potential issues associated with
DPAS. Do
you have a rated order? Can
a rated order “ensure” a viable electrical supply? What will you advise your customer when the “lights go
out?” Consult
with counsel on obligations under the DPAS.
Future Speaking Topics
Include—
·
September
5, 2003, “Is Arbitration Becoming Too Much Like Court
Litigation?” California State Bar Annual Meeting, Anaheim, CA.
·
October
2/3, 2003, “Use of Party-Appointed Arbitrators,” Los Angeles and
Orange County—American Arbitration Association.
·
October-November,
2003, “Global Business Law and Ethics,” Peking University and
Renmin University, Beijing, China and Shenzhen University, Hong
Kong, China.
·
April,
2004, “An Effective Dispute Resolution Process for
Subcontractors,” Philadelphia, PA.
·
May
21, 2004, Dayton NCMA Chapter, “Hot Topics in ADR.”
Information on arranging
speaking/teaching engagements on the above and/or various aspects of
Alternative Dispute Resolution (ADR), basic/advanced negotiation
techniques seminars/workshops, or on substantive topics
may be arranged by sending a message to
ADROffice@rumbaugh.net
Charles E. Rumbaugh
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