commercial item | The Contracting Education Academy

August 21, 2018 By AMK

CAS Board clarifies commercial item exemption, but raises potential audit issue

After publishing a proposed rule more than five and a half years ago, the Cost Accounting Standards (CAS) Board on July 17, 2018 issued a final rule revising the CAS exemption for contracts or subcontracts for the acquisition of commercial items.

The final rule clarifies that the current CAS exemption for commercial items extends to all contract types listed in Federal Acquisition Regulation (FAR) 12.207. However, in doing so, it also creates a potential audit issue arising out of the conditions levied by FAR 12.207 on certain contract types.

FAR lists contract types the government may use to acquire commercial items, including firm-fixed-price (FFP) contracts in conjunction with award fee incentives or performance/delivery incentives, known as fixed-price incentive (FPI) contracts. The relevant CAS commercial item exemption states that certain types of contracts for the acquisition of commercial items are exempt from all CAS. CAS 9903.201-1(b)(6) lists various contract types, including FFP, fixed-priced with economic price adjustment, time-and-materials (T&M) and labor-hour (LH), but makes no mention of FPI contracts. This inconsistency is the result of various amendments over time by the FAR Council to FAR 12.207. The final rule amends the language in CAS 9903.201-1(b)(6) to exempt commercial item contracts and subcontracts authorized in FAR 12.207 from all CAS requirements. Look for this change to CAS 9903.201-1(b)(6) when the final rule becomes effective on August 16, 2018.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=726522

January 4, 2018 By AMK

The 2018 NDAA in detail

On Tuesday, December 12, 2017, President Trump signed the fiscal year 2018 (FY18) National Defense Authorization Act (NDAA) into law (Pub. L. 115-91).

An annual defense policy bill, the NDAA is a critical piece of legislation for the contracting community because it provides the funding authority for programs and activities of the Department of Defense (DoD), the largest procurer of goods and services within the US government.

In addition, the NDAA is a vehicle for encouraging in some cases, and requiring in others, changes to both DoD and government-wide procurement practices. As the NDAA moved through the legislative process, Dentons and other commentators analyzed proposed provisions, some of which were adopted as written or in a revised form, and many of which were not included in the final bill.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/658624

December 12, 2017 By AMK

Changes to supply chain management and commercial item contracting in FY 2018 NDAA

For Department of Defense (DoD) acquisitions, the Conference Report for Fiscal Year 2018 NDAA includes provisions that simplify and others that complicate contractor responsibilities.

On November 8, 2017, the U.S. Senate and House Armed Services Committees announced that they had reached agreement to reconcile the different versions of the National Defense and Authorization Act (NDAA) for Fiscal Year 2018 passed by the Senate and House earlier in the year.

The Senate unanimously approved the compromise legislation on November 16, sending it to President Trump to sign into law. The 2018 National Defense and Authorization Act Conference Report sent to the President includes proposed changes to supply chain management, to the definition of a “subcontractor” and to commercial item contracting that may impact your business.

Keep reading this article at: https://www.lexology.com/library/detail.aspx?g=238f078d-5398-4cba-ba7b-8fdb3e308575

September 28, 2017 By AMK

Crunch time for acquisition portal in defense bill

As Congress moves to reconcile two versions of the National Defense Authorization Act in the coming weeks, one of the provisions legislators will be considering could significantly alter how federal agencies might buy commercial off the shelf items — eventually including IT products.

If approved, the measure would task the General Services Administration to develop online e-commerce portals that the Defense Department and federal agencies could use to buy basic commercial products.

Existing companies that specialize in office supplies as well as larger e-commerce platforms could create special government-focused marketplaces that buyers could use to obtain basic items.

Rep. Mac Thornberry (R-Texas), chairman of the House Armed Services Committee, first proposed the measure as the Defense Acquisition Streamlining and Transparency Act in May. It passed with some modifications in the House NDAA.

Keep reading this article at: https://fcw.com/articles/2017/09/21/ndaa-cots-ecommerce-rockwell.aspx

September 11, 2017 By AMK

GSA relaxes rules to speed contracting for hurricane relief efforts

Eight days after addressing Hurricane Harvey in Texas, the General Services Administration on Thursday pivoted to the Irma storm aimed at Florida, relaxing certain contracting rules to encourage speed and local awards.

Senior Procurement Executive Jeffrey Koses signed a “memorandum raising thresholds for areas included in the Irma declaration response,” a GSA spokeswoman told Government Executive. The Irma memorandum follows an Aug. 29 directive issued in anticipation of rebuilding in the aftermath of the Houston-area flooding from Harvey.

The Harvey memo cited sections of the Federal Acquisition Regulation allowing GSA to raise the micropurchase threshold to $20,000 for any contract to be awarded and performed, or purchase to be made in support of the designated disaster areas. “The simplified acquisition threshold is increased to $750,000, or $13,000,000 for commercial items,” the memo to GSA contracting professionals said. The authority extends to any necessary leasing of property.

Keep reading this article at: http://www.govexec.com/contracting/2017/09/gsa-relaxes-rules-speed-contracting-hurricane-relief-efforts/140856/

After publishing a proposed rule more than five and a half years ago, the Cost Accounting Standards (CAS) Board on July 17, 2018 issued a final rule revising the CAS exemption for contracts or subcontracts for the acquisition of commercial items.

On Tuesday, December 12, 2017, President Trump signed the fiscal year 2018 (FY18) National Defense Authorization Act (NDAA) into law (Pub. L. 115-91).

For Department of Defense (DoD) acquisitions, the Conference Report for Fiscal Year 2018 NDAA includes provisions that simplify and others that complicate contractor responsibilities.

As Congress moves to reconcile two versions of the National Defense Authorization Act in the coming weeks, one of the provisions legislators will be considering could significantly alter how federal agencies might buy commercial off the shelf items — eventually including IT products.

Eight days after addressing Hurricane Harvey in Texas, the General Services Administration on Thursday pivoted to the Irma storm aimed at Florida, relaxing certain contracting rules to encourage speed and local awards.

Search this Website