Government Contracts Connection


Department of Defense Rule Requiring Contractors to Represent Compliance With “Revolving Door” Rules Introduces New Hazards

The Department of Defense (DoD) has finalized a new rule that requires defense contractors to certify compliance with the federal “revolving door” rules that restrict former DoD employees’ activities after they enter the private sector.  Although contractors are already expected to ensure compliance with these laws and regulations under the existing contractor “business ethics and conduct” requirements, the new rule’s certification requirement introduces potentially severe consequences for failing to comply, and essentially shifts the responsibility to the contractor to ensure that its employees are abiding by the post-employment restrictions.  The rule is implemented at Defense Federal Acquisition Regulation Supplement (DFARS) part 252.203-7005. (more…)



A Big Sustainability Shoe Drops: Interim Rule Will Amend the Federal Acquisition Regulation

On May 31, 2011, federal agencies joined retailers, such as Walmart and Target, in embracing sustainability in their acquisition policy. An interim rule amending the Federal Acquisition Regulation (FAR) requires federal agencies, with certain exceptions, “to foster markets for sustainable technologies, materials, products, and services” by implementing new, more stringent product and high-performance sustainable building design, construction, renovation, repair, maintenance, and management practices. (Sustainable Acquisition Interim FAR). Since this is an interim rule, the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration are accepting public comments until August 1, 2011.

Click HERE for a more detailed Pepper Hamilton LLP article on this topic.

Questions?  Contact William J. Walsh, Pepper Hamilton LLP



Department of Defense Seeking More Options for Renewable Energy

Last month the Department of Defense (DoD) rolled out a new rule that enables DoD to enter into decade-long contracts for renewable energy. The diversification of DoD energy sources – which has taken on new meaning with the on-going crises in the Middle East and reawakened concerns about nuclear power – represents a continued shift towards thinking of energy self-sufficiency as a national security issue.

The new rule allows DoD to enter into renewable electricity contracts for up to 10 years (the previous cap was 5 years) where DoD can show that the purchase is cost-effective and the use of a long-term contract is necessary. The rule defines renewable energy as “electric energy generated from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project.” The full rule is implemented at Defense Federal Acquisition Regulation Supplement (DFARS) section 217.175.

DOD has steadily improved its energy efficiency through the use of Energy Savings Performance Contracts (ESPCs); however, its annual energy spending continues to rise. While some renewable energy technology is not currently price-competitive, long-term renewable electricity contracts may become attractive where DoD is offered a discount over the long-term. Decade-long contracts are also a chance for contractors in emerging energy fields to establish long-standing relationships with DoD entities that may lead to additional business opportunities.




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