Government Contracts Monitor

OFCCP Announces Intent To Create New Data-Collection Tool

On August 10, 2011, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued an advance notice of proposed rulemaking. 76 Fed. Reg. 49398, available at http://www.gpo.gov/fdsys/pkg/FR-2011-08-10/pdf/2011-20299.pdf. The advance notice indicated OFCCP’s desire to create new rules to collect employee compensation data from federal service or supply contractors. OFCCP argues that a new data collection tool is necessary to identify and eliminate alleged gender, race, and/or ethnicity pay gaps.

Federal Contractors May Be Required to Disclose Political Contributions

President Obama issued a draft Executive Order that will “require all entities submitting offers for federal contracts to disclose certain political contributions and expenditures that they have made within the two years prior to submission of the offer.”

U.S. Department Of Labor Issues Notice Of Proposed Rulemaking Concerning Affirmative Action And Non-Discrimination Against Veterans

On April 26, 2011, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a notice of proposed rulemaking to eliminate 41 C.F.R. Part 60-250, as obsolete, and replace the existing 41 C.F.R. Part 60-300 with new regulations.  These regulations implement the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (“VEVRAA”), as amended, 38 U.S.C. § 4212.  VEVRAA, and OFCCP’s implementing regulations, are designed to eliminate employment discrimination against U.S. military veterans.  One of the means of eliminating discrimination is to require contractors to adopt and implement Affirmative Action Plans designed to increase the hiring of covered veterans.  The proposed regulations replace many suggested means of compliance with VEVRAA with new mandatory methods of compliance.

Text Messaging While Driving Prohibited For Federal Contractors

Last Fall, the Federal Government enacted new regulations requiring all federal contractors to institute new policies and procedure prohibiting contractor employees from texting while driving federal government vehicles or while driving private vehicles when performing work on federal contracts.

House Passes Legislation Requiring FCPA Violators to be Proposed for Debarment

Legislation approved by the House last week would require federal agencies to propose for debarment federal contractors found to have violated the Foreign Corrupt Practice Act (FCPA).  The FCPA prohibits giving or offering to give anything of value to a foreign official for the purpose of obtaining or retaining business for or with any foreign government.

New Rule Requires Contractors to Report Executive Compensation and Subcontractor Information

Effective July 8, 2010, a new interim rule requires contractors to report information about subcontract awards and the names and – of particular note – the salaries of the 5 highest-paid prime and subcontractor executives. The subcontract award information will be made publicly available at USASpending.gov, and the contractor executive compensation information will be posted to the Central Contractor Registration (CCR) website. 

Congressional Investigations: Responding to Congressional Information Requests

Receipt of a congressional subpoena is a scary moment for any company. In recent years, government contractors have come under congressional scrutiny not faced by commercial contractors.

New Regulation Requires Contractors to Post Labor Rights Notices

On June 21, 2010, federal agencies will begin using contract clauses requiring contractors to post new workplace notices informing employees of their rights under federal labor laws. The Department of Labor’s recent final rule implements Executive Order 13496, which President Obama issued soon after taking office.  

DoD Proposes Tightening Organizational Conflict of Interest (OCI) Rules

The Department of Defense (DoD) is proposing to amend its procurement regulations to “provide uniform guidance” and to “tighten existing requirements” for organizational conflicts of interest (OCI) in DOD contracts. Although the new rule implements § 207 of the Weapons Systems Acquisition Reform Act of 2009 (WSARA) (see our June 2009 post), it would apply to all non-COTS DOD contracts.

Federal Circuit Clarifies the Definition of IR&D Costs

The U.S. Court of Appeals for the Federal Circuit recently issued a long-awaited decision clarifying the classification of costs as Independent Research and Development (IR&D). ATK Thiokol, Inc. v. United States, No. 2009-5036 (Fed. Cir. Mar. 19, 2010).