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Manufacturers and system integrators doing business with the Department of Defense take note. On June 22, 2006 I attended a meeting in Washington, D.C. to discuss the requirements of the Berry Amendment codified at 10 U.S.C.A. § 2533a. The amendment requires that funds appropriated or otherwise available to the Department of Defense may not be used for the procurement of an item not grown, reprocessed, reused, or produced in the United States or a qualifying country...

A review of the new GSA DRAFT Alliant RFP discloses that it includes language that would limit prime contractors using sub-contractors to billing customers the rates the sub-contractors charge them. This is the same issue that is in the yet to be released final rule on payments under time and material and labor-hour contracts (Federal Register: September 26, 2005, Volume 70, Number 185, Page 56314). We will keep you informed!

Google U.S. Government Search offers a single location for searching across U.S. government information, and for keeping up to date on government news. You can choose to search for content located on either U.S. federal, state and local government websites or the entire Web -- from the same search box. The Google U.S. Government Search index includes U.S. federal, state and local sites with domains such as .gov, .mil as well as select government sites with .com, .us, and .edu domains (eg. .usps.com, .ca.us and ndu.edu). Give it a try at: www.google.com/ig/usgov .

The Office of Management and Budget established a quota for the use of performance-based contracting of 40 percent. Recent data gathered by the Service Acquisition Reform Act Advisory Committee was presented on Thursday, June 29, 2006...

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The interest rate to be used in the calculation of the cost of facilities capital under CAS 414 and CAS 417 for the period July 1, 2006 through December 31, 2006, is 5.75% (5.75 per centum) per annum. This rate was published in the Federal Register, Volume 71, Number 126, Pages 37638-37639 on Friday, June 30, 2006. The previous rate applicable to the period January 1, 2006 through June 30, 2006 was 5.125%

The depreciation cost principle was revised to address the allowability of depreciation costs of reacquired assets involved in a sale and leaseback arrangement. The wording at FAR 31.205-11 (3)(i) now reads: In the event the contractor reacquires property involved in a sale and leaseback arrangement, allowable depreciation of reacquired property shall be based on the net book value of the asset as of the date the contractor originally became a lessee of the property in the sale and leaseback arrangement –

A. Adjusted for any allowable gain or loss determined in accordance with 31.205-16(b); and

B. Less any amount of depreciation expense included in the calculation of the amount that would have been allowed had the contractor retained title under FAR 31.205-11(h)(1) and 31.205-36(b)(2).

This final rule becomes effective July 28, 2006.

FAR 15.403-1, Prohibition on obtaining cost or pricing data, has been revised to address the need for cost or pricing data associated with noncommercial modifications of commercial items. It reads as follows:

(c)(3)(ii)(A) For acquisitions funded by any agency other that DoD, NASA, or the Coast Guard, such modifications of a commercial item are exempt from the requirement for submission of cost or pricing data.

(B) For acquisitions funded by DoD, NASA, or the Coast Guard, such modifications of a commercial item are exempt from the requirement for submission of cost or pricing data provided the total price of all such modifications under a particular contract does not exceed the greater of $500,000 or 5 percent of the total price of the contract.

(C) For acquisitions funded by DoD, NASA, or the Coast Guard such modifications of a commercial item are not exempt from the requirement for submission of cost or pricing data on the basis of the exemption provided for a FAR 15.403-1(c)(3) if the total price of all such modifications under a particular contract action exceeds the greater of $500,000 or 5 percent of the total price of the contract.

This final rule is effective July 28, 2006.

The Government Contracting Services Group participated in the June 10, 2006 Small Business Contracting Symposium presented by the NCMA Tysons Corner Chapter, Provident Bank and the Northern Virginia GovCon Council. Some 250-300 people attended the event held at the Hilton McLean across the parking lot from our offices. Speakers included Congressman Donald Manzullo, Chairman of the U.S. House Committee on Small Business, Joseph Kampf, President & CEO of the Anteon International Corporation, and Hector Barreto, Administrator of the Small Business Administration. There were some 61 exhibitors from business, the government and academia.

David Talley and Sam Davidson in front of our booth at the
G ­ CON Symposium