Everyone wants secure, reliable supply chains.  There are Executive Orders on this topic, countless DOD reports, and Congressional action in nearly every defense authorization bill, including the recently passed FY’24 law.  While the government comes in for some responsibility to ensure secure supply chains, most of the responsibility ultimately flows down to contractors.  It shouldn’t.  While contractors certainly have a role to play, ultimately ensuring secure and resilient supply chains is everyone’s business.  Contractors can take steps to ensure that they don’t buy counterfeit components or take unnecessary risks that could delay the Read more

The US Trade Representative’s office has set a new dollar threshold below which the Buy American Act (BAA) will typically apply and above which the Trade Agreements Act (TAA) will apply. While levels vary for different products, services and countries, the general new threshold is $174,000.  This is a decrease from $183,000 which had been the standard for 2022 and 2023.  Contractors should remember that large IDIQ contracts typically apply the thresholds at the program level, meaning that all transactions in such cases are covered by the TAA.  Nevertheless, it is important to take note of the new dollar levels to ensure that companies comply with all types of government business.

Senate leaders are actively calling for a new short-term Continuing Resolution (CR), one that may last into March, as the first current deadline for passing appropriations bills approaches at the end of next week.  House leaders have previously expressed opposition to such a move, and it is unclear whether there will be enough votes there to support a CR.  One sticking point is that some House members appear to want the issue of a shutdown more than they want to pass spending bills to try and score political points in an election year.  This is not only a precarious political path, but also one that threatens to disrupt critical government operations, Read more

Only eight of 23 surveyed civilian agencies have adequate Federal Information Security Modernization Act (FISMA) controls in place, according to a recent GAO report.  The findings were originally published in an article on nextgov.com. The number comes as a surprise given the governmentwide emphasis on cybersecurity, supply chain risk management, and similar requirements the government places not only on itself, but also on contractors.  While some of the problems may stem from ineffective measurement metrics, a point raised by several agencies, GAO also cited comments made by inspector’s generals about agency shortcomings.  “IGs reported various causes for the ineffective programs, including management accountability issues and gaps in standards and quality control,” the watchdog said, adding that “addressing Read more

The government wants lower prices, except when it doesn’t.  Your confidential information can’t be released under FOIA until it is.  Firm-fixed price contracts come with sometimes substantial risks.  These are among the lessons that the new year has already brought for government contractors.  Learning them can be the difference between sound government business and wondering what went wrong.

1.  There is Such a Thing as a Price That is Too Low: The GAO recently ruled that the Air Force properly acted to exclude a contractor whose prices were deemed to be unrealistically low.  In OBXtek Inc. (GAO, No. B-422057) GAO stated that the Air Force could not properly evaluate the protestor’s proposed rates as a substantial part of employee compensation was incentive-based and that the protestor offered unrealistically low rates for areas that had previously proven difficult to staff.  They upheld the Air Force’s decision to make a best value award to a Read more