As part of the regulatory updates to Multiple Award Schedule (MAS) contracts, General Services Administration (GSA) announced in an Interact blog post on March 9, 2017, that contracting officers may require contractors re-representing their size status from small to large to submit a subcontracting plan after the re-certification. A number of other impactful changes will be incorporated in the upcoming round of solicitation refreshes.
In a March 22 webinar, GSA noted that several of the updates have already appeared in recent refreshes to a few solicitations – most notably the Professional Services Schedule. Refreshes to the remaining schedule solicitations are tentatively planned for April 2017. Here are the changes contractors should review carefully before accepting the mandatory modification:
President Trump revoked the Fair Pay and Safe Workplaces Executive Order 13673 on March 27, 2017, and ordered that any associated rules and regulations be rescinded. The order required federal contractors to report labor law violations at the time of contract bidding and semiannually thereafter to include: 1) civil judgements, 2) administrative merits determinations, and 3) arbitral awards including awards that are not final or are subject to court review. The rule never went into effect as a federal district court in Texas filed a preliminary injunction on October 24, 2016, the day before the rule was to go into effect. Federal contractors are relieved of a huge compliance burden, as they will be spared the time and cost of reporting labor law violations, including alleged violations, at the time of bidding and subsequently thereafter.
As a follow-up to Aronson’s webinar on Service Contract Act Compliance in Real Business Government Contractor Environments, we provided answers to several attendee questions below.
In accordance with Executive Order 13658, the minimum wage for certain Federal contractors increased to $10.20 an hour effective January 1, 2017. Generally, the increased wage rate must be paid to workers performing on or in connection with covered Federal contracts whose wages are governed by the Fair Labor Standards Act (FLSA), the Service Contract Labor Standards (SCLS), or the Davis-Bacon Act (DBA).
Covered contracts include:
The Fair Pay and Safe Workplaces final rule going into effect in October will require contractors to potentially shed light on labor law skeletons in the closet when submitting Federal bids. A contractor’s history of compliance with several labor laws will now come into play in the determination of contractor responsibility prior to award of a federal contract.
What do contractors need to report? For the 14 federal labor laws listed below, as well as equivalent state laws (currently only OSHA-approved State Plans), prime contractors and subcontractors will be required to disclose civil judgements, administrative merits determinations, and arbitral awards including awards that are not final or are subject to court review.