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
September
26, 2003, Regulatory Update
Recent
Regulatory matters that may be of interest since the last Update
include---
1.
On September 9, 2003, Deidre Lee, Director Defense
Procurement and Acquisition Policy, issued a memorandum on “DoD
Contract Payments” which directs contracting officers to “ensure
that all contracts containing multi-funded contract line items
include adequate (and current) payment instructions to permit the
paying office to charge the accounting classification citations
assigned to that contract line item.”
This action is a follow-up to recent GAO reports on contracts
that were “deficient” on preparation of payment instructions.
COMMENT: It is reported
that DFAS Columbus spends 35%, of the total amount spent at
Columbus on “contract pay services,” on deficiency
“adjustments.” Since contractors are “normally” required to cite the
CLIN, SLIN, and the Accounting Classification Reference Number (ACRN)
on shipping instructions and invoices, this is critical to the
process for everyone in order to ensure timely payment, etc.
2.
DOD is
reported “on track” to releasing an interim DFARS rule by
October 1, 2003, on their Unique Identification (UID) policy which
requires creating a unique identifier for parts and components,
using barcodes, and also assigning values to end items under
the contract. MIL STD 130 is also planned to be revised
to reflect the new barcode part marking scheme.
All new solicitations (including spares) issued after January
1, 2004, will be required to adhere to this UID standard.
In early 2004 a modified Wide Area Work Flow is also expected
to accept these UIDs and valuation inputs.
COMMENT: Are “you” (almost) ready?
How will the value be assigned?
This is a significant regulatory change and should
“normally” require clearance under the Paperwork Reduction Act.
See prior Regulatory Updates.
3.
On August 4, 2003, AFMC issued a memorandum on “Award Fees,
Contingent Liabilities and Working Capital Funds” which attached a
April 18, 2003, memorandum “which provides guidance
on AFMC’s procedures for committing contingent liabilities
(including award fees) and recording obligations.”
Most significantly these memoranda cover the use of
“Miscellaneous Obligation Reimbursement Documents (MORDs).”
COMMENT: Contractors, how will your (potential) award fees be
recorded?
4.
The September 15, 2003, Federal Register
published a proposed DFARS change “to eliminate Government
source inspection requirements for contracts or delivery orders
valued below $250,000, unless … (1) mandated by DoD regulation,
(2) required by a memorandum of agreement between the acquiring
department or agency and the contract administration agency, or (3)
the contracting officer determines that certain conditions exist.”
This proposal is intended to “permit DoD contract
administration offices to devote more resources to high-risk
contracts.” Comments are due on/before November 15, 2003.
5.
AFMC issued its “Unsolicited Proposal Guide” (September
2003) with guidance for the public on the recommended process/manner
of submitting unsolicited proposals to AFMC.
COMMENT: And, this has “no significant impact upon the
public” that would require notice and comment in the Federal
Register, Paperwork Reduction Act clearance?
Wait until DoDs “Transformation Initiative” gets into
full “swing.” See prior Updates.
6.
The Air Force issued its first edition (September 2003) issue
on a “Contracting Officer Guide to Affirmative Procurement.”
The summary provides an overview of the Guide and stated,
“Affirmative Procurement (sometimes called “Green
Procurement”) is a term that umbrellas many programs aimed at
protecting the environment and reducing energy consumption.
The important concept to remember is AP requirements
should be considered in every requirements identification process
(FAR Part 1)…. This
guide primarily provides information related to (1) products
containing recovered materials (i.e., EPA-designated items) and (2)
bio-based items (i.e., USDA-designated items).”
7.
On August 19, 2003, the Small Business Administration issued
SBA Procedural Notice 8000-597 on “Application of HUBZone Price
Evaluation Preference in Best Value Procurements.”
Included is an explanation and example on using the 10% Price
Evaluation Preference of HUBZone small business concerns in best
value selections.
8.
On August 26, 2003, the AF issued guidance on
“Implementation of Additional Quality Ranking Criteria for GS-1102
Positions.” Beginning, October 1st, the AF “will include breadth
of experience and professional military and civilian education as
part of our (AF) quality ranking criteria.”
9.
The Navy issued “Contracts Competency Instruction
4200.42A” (September 8, 2003) on the “Procedure for Review and
Approval of Small Business Subcontracting Plans” for most contract
actions over $500,000.
10.
OMB noticed in the Federal Register on September 10,
2003, that it was “discontinuing” the “development of a Cost
Accounting Standard addressing the recognition of costs of
post-retirement benefit plans under government cost-based contracts
and subcontracts.” Among
other things, the CAS Board concluded “because contractors need
the flexibility to modify, reduce, or even eliminate post-retirement
benefits in the future in response to the pressures of medical
inflation, an aging population, and global competition, …(it)
finds that the liability for post-retirement benefits cannot be made
sufficiently firm to be recognized for government cost accounting
purposes without undue financial risk to both the contractor and the
government.”
11.
An
excellent powerpoint presentation on the
past
performance
evaluation
for source selections is available through the AF
“Toolkit” (under “Training”) at http://www.safaq.hq.af.mil/contracting/toolkit/
12.
NAVAIR Instruction 4200.39B (September 5, 2003) on
“Principles and Procedures for Competitive Source Selection”
which “outlines regulatory requirements for conducting
competitively negotiated source selections…and articulates a
common set of principles and procedures for conducting such
acquisitions.”
COMMENT: “Must” reading for NAVAIR contractors.
13.
Its been reported that the Department of Homeland Security (DHS) has
designated the Department of Transportation Board of Contract
Appeals (DOTBCA) to hear and decide all appeals from contracting
officers' decisions arising under the Contract Disputes Act.
And, this “designation includes all related proceedings, including
alternate dispute resolution proceedings, both before and after a
contracting officer's final decision.”
COMMENT: Voluntary use of ADR “requires” the use of the
Board?
Charles E. Rumbaugh
Back Top
Back to FASMG's Home Page