Fiscal Year 2023 started on October 1 and, without a final set of Department of Defense (DoD) authorizations and appropriations, the DoD currently is operating under continuing resolution. A version of the National Defense Authorization Act (NDAA) for Fiscal Year 2023 bill passed the House of Representatives and has been sent to the Senate for its consideration. The House version, H.R. 7900, in addition to authorizing the procurement of various items, would provide for further environmental and equity initiatives, such as providing for (i) electric vehicle charging stations at commissary stores and military exchanges, (ii) a pilot program to facilitate the transition of certain nontactical vehicles to electric vehicles, (iii) a temporary prohibition on cost-sharing requirements for contraceptive prescriptions and related services, (iv) imposition of data standards for certain agencies, (v) development of “gender-neutral fitness standards” for certain military occupational specialties, as well as (vi) prohibition on barring a veteran from federal employment solely because the veteran consumes or has consumed cannabis, and more.
Continue Reading National Defense Authorization Act for Fiscal Year 2023 Bill Passes House and Moves to Senate Where Amendments Are Being Proposed
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Department of Defense
Growing Issue of Inflation in Government Contracts Supply Chain Leads to DoD Clarification on Potential for Relief
Traditionally, a fixed price government contract is one in which the contractor absorbs the risks and costs of performance. Absent an economic price adjustment (EPA) clause in the contract, an unforeseeable event, such as a force majeure, or government imposed contract change, the contractor is stuck with the benefit or lack of benefit of the particular contractual bargain. In a cost reimbursement contract, while actual allowable, allocable and reasonable costs will be captured and paid, any fee contemplated to address the risks of performing that commitment are typically low.
However, the current landscape is not a normal one. It may be due to the COVID-19 pandemic sickness, restrictions and lockdowns, the war in Ukraine, China’s belt and road initiative, US spending of trillions of public dollars on entitlement programs, or something else, however, we see the impact in growing workforce, materials and product shortages. Economic theory aside, we know that so long as there is a continuing demand for limited services and supplies inflation will continue to grow. And, if price controls are instituted, they will not aid existing product shortages, and in fact may compound them.Continue Reading Growing Issue of Inflation in Government Contracts Supply Chain Leads to DoD Clarification on Potential for Relief
DoD COVID-19 Vaccine Policy Seeks Wider Distribution of Vaccine to Government Contractor Employees to Secure the DIB – Contractors Take Note!
As government contractors, you have been caught between the Scylla and Charybdis of the COVID-19 pandemic. On the one hand, you have been required to continue to perform your government contracts to ensure the safety and protection of the nation and on the other you have had to address not only state and local government…
Susan Warshaw Ebner Quoted on New DOD Cybersecurity Rule in Law360
Government Contracts & Investigations Co-Chair Susan Warshaw Ebner recently discussed the impact of the new Department of Defense (DOD) rule that will apply to government contractors in an article by Law360. The interim rule, which was published on September 29 and goes into effect on November 30, 2020, requires that contractors at all…
CMMC Advisory Board – The Good News First
The Cybersecurity Maturity Model Certification (CMMC) Advisory Board (CMMC AB) made a major announcement on September 16, 2020, announcing that it has trained an initial group of provisional assessors. As an earlier posting explains, the CMMC establishes cybersecurity controls for certification of government contractors from Level 1, the basic set of controls that all government…