The government proposed new regulations regarding data breaches, cost evaluation for IDIQ contract proposals, overseas small business contracting and other areas of government contracting that will affect nearly every area of the industry. Some of the key proposed changes are as follows:

  1. The Department of Defense (DoD), GSA and National and Aeronautics and Space Administration (NASA) are proposing to amend the FAR to create contract clauses that address contractor requirements for data breach responses. The proposed rule would require contractors to use a contractually required procedure in responding to data breaches that compromise personally identifiable information. This FAR change would implement the requirements outlined in Office of Management and Budget (OMB) Memorandum, M-17-12, Preparing for and Responding to a Breach of Personally Identifiable Information. The proposed rule is expected in March 2018.
  2. The DoD, GSA and NASA are proposing to amend FAR to change the requirement to consider cost or price as a factor in evaluating proposals for IDIQ contracts. This change would provide the government discretion to evaluate cost/price during task order competition rather than evaluating the cost/price of a base IDIQ contract proposal. The proposed rule is expected in April 2018.
  3. The DoD, GSA and NASA are proposing an amendment to FAR to clarify that overseas contracting is not excluded from agency responsibilities to foster small business participation. The government would be able to use small business set-asides for overseas opportunities, rather than only work performed in the US. The proposed rule is currently in comment period.
  4. The DoD, GSA and NASA are issuing a final rule amending the FAR to require federal government contractors to provide seven days or more of paid sick leave annually for employees. The change codifies interim rule, Executive Order 13706, "Establishing Paid Sick Leave for Federal Contractors," announced in December 2016.
  5. The DoD, GSA, and NASA are proposing to amend the FAR to implement 41 USC section 4712, Enhancement of contractor protection from reprisal for disclosure of certain information (whistleblowing). This was a pilot program enacted in 2013, and the change would make the program permanent. As such, contractor employees would be permanently protected from retaliation for whistleblowing. The proposed rule is expected in March 2018.

Many of the above proposed rules are currently in the public comment period, and contractors may submit relevant comments.

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