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One of the least appreciated and most maligned tools in management’s toolbox is the indirect expense or overhead rate structure. The indirect expense rate structure of an organization, whether for-profit or not-for-profit, whether service-oriented or a manufacturer or some combination of both should mirror the operational organization. A company’s indirect rates have a pervasive effect on all of their contracts, on the level of revenue and profit realized and on the volume of cash flow...

Effective March 17, 2006 the GSA laid down federal agency real property guidelines for the establishment of teleworking /telecommuting alternate workplace arrangements. These guidelines can and should be addressed by private organizations implementing AWA...

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Section 822 “requires the Secretary of Defense to (1) establish an incentive program for contractors to purchase capital assets manufactured in the United States under contracts for major defense acquisition programs; and (2) provide consideration for offerors with eligible capital assets in source selections for major defense acquisition programs.

The objective of the rule is to increase the purchase of capital assets (including machine tools) manufactured in the United States and it is expected to have a positive impact on small business manufacturers of machine tools and other capital assets used in major defense acquisition programs, as their sales to DoD prime contractors should increase.

The final rule is effective March 21, 2006 and can be found at http://a257.g.akamaitech.net/7/257/2422/01
jan2006/edocket.access.gpo.gov/2006/06-2645.htm.

In March of 2005 the Services Acquisition Reform Act Advisory Committee of the Office of Management and Budget set a government-wide goal of having 40 percent of contracts be performance-based. In a March 2005 meeting they gave the recommendation to define two distinct categories of performance-based acquisition...

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The FAR and GSAM websites have moved to a new location - Acquisition Central at www.acquisition.gov. The FAR and GSAM websites can now be accessed at the following URLs:

FAR: www.acquisition.gov/comp/far/index.html

GSAM: www.acquisition.gov/comp/gsam/gsam.html

Confirmation of HUBZone Certification (FAR Case 2005-009)

The interim rule published at 70 FR 43581, July 27, 2005 is converted to a final rule without change. The interim rule amended FAR 19.703 and the clause at 52.219-9 to clarify that prime contractors must confirm that a subcontractor representing itself as a Historically Underutilized Business Zone (HUBZone) small business concern is certified, consistent with the requirements of 15 U.S.C. 632 et seq., as amended. This change is expected to increase subcontracting opportunities for certified HUBZone small business concerns and ensure accurate reporting of subcontract awards to HUBZone small business concerns under Government contracts.

This final rule became effective April 19, 2006.

Fast Payment Procedures (FAR Case 2004-031)

This amendment permits, but does not require, fast payment when invoices and/or outer shipping containers are not marked “Fast Pay”, provided the contract includes the “Fast Payment Procedure” clause. If the Fast Payment clause is in the contract, such unmarked invoices will no longer be rejected. Instead, they will be paid using either fast payment or normal payment procedures. In addition, the revision deletes the requirement for marking invoices “No Receiving Report Prepared.”

This final rule became effective April 19, 2006

Strategic Sourcing

The Coalition for Government Procurement (www.thecgp.org) has pointed out that the Department of Homeland Security (DHS) has recently issued an RFP through the GSA that they are calling strategic sourcing:

GSA Performance Work Statement (PWS) Multiple Award Blanket Purchase Agreement (BPA) in support of the DHS Strategic Sourcing Initiative for Business Oriented Professional and Program Management (PM) Support Services.

“Offerors shall be made aware that although each Task Order will specify any travel and ODC requirements, the Government will not allow for the inclusion of any profit whatsoever on travel and ODC’s, and will not allow any G&A or material handling charges based on a percentage of cost, regardless of whether an Offeror’s GSA MOBIS schedule may state otherwise. The Offeror shall state in its pricing proposal, its understanding and compliance to this policy”