ABA Public Contract Law Section

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Accounting, Costs and Pricing Committee Meeting Agendashorizbluebar

 

AGENDA&mdash April 13, 2004 Meeting

 

I.        Panel Discussion of Iraq Procurement Issues ö Discussion Leaders Will Include

A.     Joe Newman, Principal Vice President, Manager of Procurement and Subcontracts for Bechtel Services International - Joe will share with the group some of his experiences in working in Baghdad, as well as experiences with USAID and procurement issues and complexities with Iraq reconstruction.

B.     Timothy Mills of Patton Boggs has worked extensively in Iraq advising clients on procurement and compliance issues.Ê He will share his experiences if he returns from Baghdad by April 13th.

C.     Peter McDonald of McGladrey & Pullen assists clients with accounting and procurement issues relating to Iraq Reconstruction.

 

II.     Informational Items

  1. House Government Reform Committee Hearing on Iraq Reconstruction Contracts,Ê March 11, 2004.Ê House Government Reform Committee chairman Tom Davis, R-Va., held a hearing to look into coordinating contracts amid the challenges of rebuilding Iraq, specifically as it pertains to larger construction projects.Ê Topics included efforts made by the DOD and the U.S. Agency for International Development to manage acquisition activities to ensure that taxpayer money is being spent effectively, and making sure that acquisition rules are being followed.

 

  1. ãFocus of New Acquisition Panel Debatedä, by Jason Peckenpaugh, February 17, 2004.Ê A soon-to-be-named panel of acquisition experts has the chance to fix serious shortcomings in the federal procurement system, observers say, but some fear the panel will pursue the agenda of federal contractors and a powerful Republican congressman.Ê The acquisition panel is the creation of Rep. Tom Davis, R-Va., who added language establishing it to the fiscal 2004 Defense Authorization act.Ê The panel will have a year to survey performance-based contracting, government-wide contracts and the use of commercial acquisition practices, according to its authorizing language.Ê Likely to be on the agenda: share-in-savings contracting, where agencies share profits generated by projects with contractors, and expanding commercial acquisition practices.

 

  1. AST Anlagen-Und Sanierungstechnik GmbH, ASBCA Nos. 39576, 50802, March 4, 2004.Ê In a 15 year old case the ASBCA grants an appeal and converts a default termination to one for the convenience of the government.Ê The Board finds that the contracting officer never established a valid completion date which could serve as a basis for a termination for default for failure to make progress.Ê Writing for the Board, Judge Paul states ãEven if the government had satisfied its burden in this regard, the default termination could not withstand strict scrutiny.Ê From the date of contractual award until the date of termination, ASTâs attempts to complete the project were thwarted by a host of government-caused delays which were thoroughly documented by the contracting officer and his fellow governmental employees.ä

 

  1. Department of the Army ö Modification of Remedy, B-292768.5, March 25, 2004.Ê Protest costs, including attorneysâ fees, need not be allocated between protest issue that was sustained and issues that were not addressed or denied in decision where all issues were related to the same core allegation, which was sustained; since issues not addressed or denied were not distinct and severable from the sustained issue, attorneysâ fees relating to those issues are reimbursable.

 

III.   Regulatory Developments

 

A.     Postal Service - Purchasing of Property and Services, Proposed rule, 69 FR 13786, March 24, 2004.Ê The Postal Service proposes to amend its regulations in order to implement the acquisition portions of its Transformation Plan (April 2000) and the similar recommendations of the Presidentâs Commission on the United States Postal Service (July 2003) as they relate to the acquisition of property and services in accordance with 39 U.S.C. 101, 401, 403, 404, and 410.Ê Written comments must be received on or before April 23, 2004.

B.     NASA ö Proposed Rule Re:Ê Amendment To NFS Scope, Propose rule, 69 FR 16886, March 31, 2004.Ê Proposed rule that would amend the NASA Federal Acquisition Regulation Supplement (NFS) by removing from the Code of Federal Regulations (CFR) portions of the NFS that contain internal Agency Administrative procedures and guidance that does not control the relationship between NASA and contractors.Ê Written comments must be received on or before May 14, 2004.

C.     DOD, GSA, NASA ö General Provisions of Cost Principles, Final rule, 69 FR 17764, April 5, 2004.Ê The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule amending the FAR to revise certain general provisions of the cost principles pertaining to Composition of total cost; Determining allowability; Direct costs; and Indirect costs.Ê The rule revises the cost principles by improving clarity and structure, and removing unnecessary and duplicative language.Ê The revisions are intended to revise Contract Cost Principles and Procedures in light of the evolution of GAAP, the advent of Acquisition Reform, and experience gained from implementation of FAR Contract Cost Principles and Procedures.Ê The final rule also adds the definition of ãdirect costä and revises the definition of ãindirect costä to be consistent with the terminology used in the cost accounting standards (CAS).Ê Effective Date:Ê May 5, 2004.

 

IV. ABA Conference - Privatization of Federal, State and Local Government Services

 

A.     Seminar Friday April 30

A.     Council Meeting Saturday May 1


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