Posted on 12/28/2011 12:18 PM

Key provisions of the FY12 Defense Authorization Bill include allowability of costs for contractor employee compensation, improvements to the past performance databases, limitations on expenditures for contractor services, extension of the task and delivery order protest limitation, improvements in the training of the federal acquisition workforce, a five year extension of the mentor protégé program, the addition of acquisition functions to the definition of critical functions and reauthorization of the SBIR and STTR programs.

·         Contractor compensation. The coverage of allowable costs now includes all contractor employees. Certain scientists and engineers can be exempted. The bill retains the current formula for determining the compensation costs.
·         Past performance databases. DOD must develop away to be sure timely, accurate and complete information on contractor performance is included in the databases used for making source selection decisions. Contractors must be afforded up to 14 days to provide comments before the information is posted and they may submit information any time.
·         Cap on DOD spending for contract services. Spending for FY12 and FY13 is limited to the budget request for 2010. Funding for staff augmentation contracts and contracts for functions closely associated with inherently government functions must be reduced by 10 percent. DOD is directed to adopt a negotiation objective that holds contractor labor and overhead rates at 2010 levels.
·         Task and delivery order protests. GAO can hear civilian agency protests of task and delivery orders under limited circumstances.   The limited circumstances: you cannot protest unless the ground for protesting is that the order increases the scope, period, or maximum value of the contract under which the order is issued; or, the protest is on an order in excess of $10M. The same rule applies to DOD task and delivery orders.
·         Acquisition workforce improvements. The legislation fosters and promotes acquisition workforce training.
·         Mentor-Protégé Program. Extended five years.
·         Transferring work in-house. The legislation adds “acquisition workforce functions” and “critical functions” to the current functions DOD should consider for insourcing.
·         SBIR and STTR reauthorized. These programs are extended for 6 years.
This is only a brief synopsis of a few provisions of the legislation.  If you have any questions, we will be happy to answer them for you.


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