New Federal Acquisition Circular Includes Rule on Late Payments to Subcontractors

The Federal Acquisition Regulation (FAR) Council has published a second Federal Acquisition Circular in two weeks, this one containing two final rules. The first provides guidance for contractors who must train employees for handling personally identifiable information. The second rule states that if a contract requires a subcontracting plan, the prime contractor must notify the contracting officer in writing if the prime contractor pays a reduced payment to a small business subcontractor, or an untimely payment if the payment that is more than 90 days past due for supplies or services for which the government has paid the contractor. The contractor is also to include the reason for the reduction in payment or failure to pay. A contracting officer will then use his or her best judgment in determining whether the reduced or untimely payments were justified. The contracting officer must record the identity of a prime contractor with a history of three or more unjustified, reduced, or untimely payments to subcontractors within a 12-month period under a single contract, in the Federal Awardee Performance and Integrity Information System (FAPIIS).

Ebook: Market Insights For Purchasing IT Hardware

Public Spend Forum has compiled an ebook collecting the latest research, best practices and leading strategies for purchasing everything from desktop computers, to printers, to productivity software. The ebook is free to download for PSF members.

The Trump Transition And Improving Public Procurement

Former Office of Federal Procurement Policy Administrator Steve Kelman writes about his experience looking to get a position in the Clinton administration, and the need for President-Elect Donald Trump’s administration to pay attention to procurement policy. Kelman cites three broad recommendations for the next administration: develop more information about contract performance; pivot to post-award contract management; and expand forms of contracting that pay for success.

GE to Pay $2.5 Million in Settlement with DoD

General Electric Corporation (GE) has agreed to pay more than $2.5 million to resolve allegations that it violated contractual requirements on a Department of Defense (DoD) contract. According to the press release, GE’s subsidiary, Avio Aero, failed to consistently perform pressure tests on helicopter and fighter jet gearboxes, from 2010 to 2014. The government also alleged Avio did not provide notice of the skipped tests, but rather stamped documents to indicate that such testing had been conducted.

Forbes on Philly’s Procurement Reforms

Forbes Magazine looks at Philadelphia’s public procurement reform efforts. The city is actually taking the unusual step of putting its new, best-value approach, to a citywide referendum in May 2017. The idea is to switch the decision basis from “lowest responsible bid” to one that allows buyers to to take other factors into consideration.

New Bill Seeks to Improve Federal Property Management

President Barack Obama has signed the Federal Property Management Reform Act of 2016, which establishes “a framework for agencies to assess and inventory real property, more efficiently manage buildings and co-location opportunities for federal agencies, and determine how to dispose of unneeded property,” according to the Federal Times. The bill was introduced in the House by Rep. Jeff Denham (R-CA) and passed by the Senate on December 17.

Report: Congress Should Fund DHS Headquarters Project

According to a new report from the Homeland Security and Governmental Affairs Committee, Congress should fund President Obama’s fiscal 2017 budget requests for the ongoing Department of Homeland Security consolidation at St. Elizabeths West. The report argues that by providing the funding, the government would avoid further delays and cost overruns and potentially earn $1.2 billion in savings over 30 years. The report also argues the new administration “should make sure finishing DHS’s headquarters consolidation project at St. Elizabeths remains one of the highest construction priorities.”

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