Proposing a Simpler Exemption

On November 19, 2012 the Office of Federal Procurement Policy (OFPP) and the Cost Accounting Standards (CAS) Board issued an invitation for public comments concerning a proposed modification to the existing “commercial item” exemption. (77 Fed. Reg. 69422). The proposed change eliminates the detailed listing of permissible contract types included in the exemption found at CFR 9903.201-1(b)(6).  This will likely provide an exemption for more contracts that clearly should not be subject to CAS coverage. The CAS Board “believes that there is an inconsistency in the regulatory text” of the exemption between the current exemption wording and “other applicable statutory and regulatory provisions.”  The Board wants to expand the scope of contracts exempt from CAS and to allow for a more generalized statement. Currently, the exemption … Continue reading

Proposed FAR Rule Requires a Broad Universe of Government Contractors to Safeguard Contractor Information Systems

Guest Authors: Elizabeth Ferrell & Erin Sheppard, McKenna Long & Aldridge.  Originally posted at On August 24, 2012, the Department of Defense (DoD), General Services Administration (GSA) and National Aeronautics and Space Administration (NASA) issued a proposed rule requiring contractors to safeguard contractor information systems containing information provided by or generated for the government.  Federal Acquisition Regulation, Basic Safeguarding of Contractor Information Systems, 77 Fed. Reg. 51496 (Aug. 24, 2012) (the “Proposed Rule”). The Proposed rule adds a new Federal Acquisition Regulation (FAR) subpart and contract clause that make basic information protection measures a contractual obligation.  The Proposed Rule mandates basic protection measures on contractor information systems and contractors’ use of non-public government information aimed at deterring unauthorized disclosure, loss, or compromise of non-public Government information.  Id.  Prior to … Continue reading