Navigating Government Contracting Updates with Chad Braley – Edition 7
From tariff volatility to sweeping federal procurement reforms, this week’s Capital Edge Tip Line dives into urgent updates that could affect how your contracts are priced, managed, and reimbursed. CEO Chad Braley breaks down how contractors should respond to shifting agency expectations and regulatory guidance.
Key Updates from This Week’s Tip Line
DOE Indirect Cost Caps – New Limits for Federal Awardees
What’s happening? The Department of Energy released new memorandums limiting indirect costs recoverable by:
- State and local governments (10%)
- Nonprofits and for-profits receiving DOE assistance (15%)
What it means for you:
- Applies to new or conditional awards only—not retroactive.
- Fringe benefits may now be considered part of indirect costs, deviating from prior norms.
Action Item: Reevaluate indirect rate structures, especially if you’re pursuing active DOE funding opportunities. Watch NOFO language closely for cost recovery terms.
DCAA Final Decisions – Silent Audits Now Triggering Disputes
What’s happening? A wave of Contracting Officer Final Decisions (COFDs) is hitting contractors without prior audit warnings, often citing non-compliance, CAS violations, or questioned costs.
What it means for you:
- DCAA’s public messaging now focuses heavily on fraud, waste, and abuse.
- Contractors are receiving sudden demands for large dollar recoveries, with limited prior engagement.
Action Item: Prepare for increased enforcement. Shore up DCAA audit documentation, evaluate potential exposure areas, and engage early on audit or rate disputes.
FAR Consolidation – First Wave of Changes Arrives
What’s happening? The revolutionary rewrite of the Federal Acquisition Regulation has begun, with updates issued for:
- FAR Part 1 (definitions, agency supplements)
- FAR Part 34 (removal of select EVMS clauses)
- FAR Part 52 (clauses affected by changes in Parts 1 & 34)
What it means for you:
- The updates are less sweeping than expected—many statutory items remain.
- Agencies can still issue supplemental regulations.
- No buying guides have been released yet, and most FAR parts are still untouched.
Action Item: Track ongoing FAR consolidation updates and prepare for further FAR changes. Monitor whether your agency introduces supplements or deviations.
Looking for Expert GovCon Guidence?
Whether you’re navigating funding caps, audit risks, or regulatory overhauls, Capital Edge Consulting provides the strategic guidance you need.
Have Questions? Need Help?
If these developments could affect your business, don’t wait, reach out for support tailored to your compliance and contracting needs.
Contact us today to discuss your specific challenges and compliance needs.
