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Understanding the New CECL Standard: What You Need to Know

posted 2 days ago
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By Mike Westervelt of CliftonLarsonAllen Originally published January 14, 2025 The Financial Accounting Standards Board (FASB) introduced the Current Expected Credit Loss (CECL) standard under ASC 326, effective for private entities starting from fiscal years beginning after December 15, 2022. This means it applies to 2023 calendar year-ends and fiscal year ends periods thereafter. What’s Changed? Under the old rules, you reserved for credit losses when you saw signs of trouble. Think of it as waiting until you see someone struggling before worrying about getting paid. The new CECL standard requires a proactive approach. From the moment you provide ...
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Federal Judge Strikes Down Private Party’s False Claims Act Suit

posted 8 days ago
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By Arthur Tergesen and Brian D. Waller of Peckar & Abramson, P.C. Originally published November 18, 2024 Enacted in 1863 during the Civil War to combat “stupendous abuses” in the sale of provisions and munitions to the War Department, the False Claims Act (the “FCA”) imposes civil liability on those who knowingly submit or cause to submit false claims to the government. The qui tam provision of the FCA allows a private party (known as a relator) to sue on the government’s behalf under the FCA. If successful, the relator can recover a portion of the recovery. In its current form, the FCA permits the government to intervene and take over a relator’s ...
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Key Takeaways from the GAO’s Bid Protest Report to Congress for Fiscal Year 2024

posted 15 days ago
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By Sarah K. Carpenter of Smith Currie Oles Originally published December 31, 2024 Key Takeaways The number of protests filed with the Government Accountability Office (“GAO”) decreased by 11 percent in 2024. The GAO’s sustain rate of 16 percent in 2024 decreased from 31 percent in 2023. The GAO’s effectiveness rate of 52 percent in 2024 decreased from 57 percent in 2023. Introduction On November 14, 2024, the Government Accountability Office (“GAO”) published its Bid Protest Annual Report to Congress for Fiscal Year 2024 . Mandated by the Competition in Contracting Act (“CICA”), the GAO report includes key data and analytics ...
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End-of-year Savings for NASBP Online Continuing Education Courses

posted 12-17-2024
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NASBP offers four industry-specific, online training courses that can help surety professionals fulfill licensing and licensing renewal requirements. Now is the perfect time to register for the NASBP Online Courses, use code NASBP2024 to receive 20% off! The courses are self-paced within a 12-month period, so register now to get the discount and complete the course when it’s most convenient. Each of NASBP’s online courses consists of several hours of self-study and concludes with an online exam. Each of these courses is certified to provide CE credit in all 50 states, the District of Columbia, and Guam. NASBP Contract Surety Fundamentals Course ...
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Look ahead to 2025 with NASBP SuretyJobs

posted 12-09-2024
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As agencies and sureties plan for the year ahead, they may need to hire more surety professionals. NASBP wants to help attract new talent to our industry, taking steps such as the “Make Surety A Career” program. Another way is NASBP’s revamped career center, NASBP SuretyJobs , which helps match bond producers and surety companies and other surety and insurance industry companies with qualified candidates for open positions. Employers can easily advertise open jobs at NASBP SuretyJobs, and job seekers can post their resumes and find open surety industry positions. NASBP SuretyJobs also offers resources for those new to the industry and seasoned surety professionals ...
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GAO Sustains Protest Challenging Decision to Convert Competitive Bid Solicitation to Negotiated Procurement

posted 12-06-2024
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By Amandeep S. Kahlon , Aron C. Beezley , and Nathaniel J. Greeson of Bradley Arant Boult Cummings LLP Originally published November 7, 2024 In January 2023, the U.S. Army Corps of Engineers (USACE) issued an invitation for bids (IFB) for a dune and berm replenishment and renovation project along the New Jersey coast. The USACE received two sealed bids for the project, but both bids exceeded the independent government estimate (IGE) for the project by over $21 million. When additional funding to support the project could not be obtained, the USACE canceled the IFB because, in its view, (1) the bids received were unreasonably high, (2) the bids received ...
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Good News for Contractors: SAM Lapse Will No Longer Cost You a Contract

posted 11-21-2024
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By Allison G. Geewax of Smith Currie Oles LLP Originally published November 13, 2024 Government contractors and agencies alike are breathing a sigh of relief as the Department of Defense, General Services Administration, and National Aeronautics and Space Administration issued an interim rule on November 12, 2024, to clarify what we have all long known deep down to be true: If an offeror is properly registered in the System for Award Management (SAM) at the time of offer and at the time of award, a minor lapse in between should not result in a lost award. However, the road to this result was long and tortured. A prior version of FAR 52.204-7 stated that ...
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The Power of Incorporation Compels You: Surety Succeeds in Compelling Contractor to Arbitrate Bond Claims Pursuant to Arbitration Clause in Subcontract

posted 11-21-2024
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By Amandeep S. Kahlon and Carly Miller of Bradley Arant Boult Cummings LLP Originally published November 12, 2024 In Swinerton Builders, Inc. v. Argonaut Insurance Co. , Swinerton Builders, a contractor, sued a surety on bond claims arising from defaults by its subcontractor on a series of work orders. The owner of Swinerton’s mechanical subcontractor on three projects passed away unexpectedly, and the subcontractor was unable to complete its remaining work on the projects. Swinerton filed a complaint in August 2023 against Argonaut, the subcontractor’s surety, seeking to recover on the payment and performance bonds issued by Argonaut. The complaint ...
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CMMC Primer for the Construction Industry

posted 11-18-2024
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By Bridget Choi and Jamin Valdez of Woodruff Sawyer Starting in 2025, the Cybersecurity Maturity Model Certification (CMMC) will be required for contractors on Department of Defense (DoD) projects. It’s crucial that Contractors proactively educate themselves on how this requirement may impact their bid qualifications and cybersecurity program. Understanding these criteria in advance can help prevent the unnecessary investment of time and resources, only to find later they may not meet the qualifications needed to bid on the opportunity. Is your business ready to meet these new requirements? What is it? The Cybersecurity Maturity Model Certification ...
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Build America, Buy America Act (BABA) – Federal Highway Administration (FHWA) Compliance in the Spotlight

posted 11-15-2024
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By Joseph Haughney of Smith Currie Oles Originally published November 5, 2024 BABA is the most expansive domestic preference law in American history, requiring all federal funding on state and local projects to meet minimum BABA requirements for (1) iron and steel, (2) manufactured products, and (3) construction materials. The FHWA’s implementation of BABA requires compliance with a new “construction materials” category, as well as the impending end of the FHWA’s “manufactured products” Buy America waiver. This requires contractors to be diligent and cognizant of these changes, as BABA affects how and where contractors source their materials. How does ...
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Can the Government Ignore Red Flags of Set-Aside Fraud?

posted 11-11-2024
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By David Timm of Fox Rothschild LLP Originally published on June 17, 2024 The Federal Government is committed to developing its relationship with small and disadvantaged businesses through set-aside contracts that incentivize and protect these companies from competing with large, established competitors. But sometimes large companies try to manipulate the system by using these small businesses as puppets to capture set-aside contracts. If you are a small or disadvantaged bidder, you might hope that contracting officers have some minimal obligation to refer proposals to the Small Business Administration (“SBA”) if they see obvious red flags in a proposal ...
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Analysis of OFCCP’s Revised Construction Scheduling Letter, Part 2

posted 11-04-2024
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By Evan Szarenski of DCI Consulting Originally published October 22, 2024 This blog is part 2 of an analysis of the new OFCCP scheduling letter for federal construction contractors. Section 503 and VEVRAA, Item 2 This item requires contractors to submit documentation that it provided notice of the company’s EEO policy to unions and requested their cooperation. OFCCP removed the requirement of submitting outreach to community organizations from this item, although documentation of outreach to community organizations may be covered by Item 5. Section 503 and VEVRAA, Item 3 Prior language: Your most recent assessment of your personnel processes, ...
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Analysis of OFCCP’s Revised Construction Scheduling Letter, Part 1

posted 11-04-2024
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By Evan Szarenski of DCI Consulting Originally published October 18, 2024 On July 26, 2024, the Office of Management and Budget ( OMB ) granted approval for the Office of Federal Contract Compliance Programs ( OFCCP )’s revised construction compliance evaluation scheduling letter and itemized listing. On October 2, OFCCP announced that it would be using this letter for all construction reviews scheduled after October 1, 2024. OFCCP initiates all compliance evaluations by issuing a scheduling letter. There are different scheduling letters for construction compliance evaluations and for supply and service (non-construction) compliance evaluations. The ...
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OMB Approves Monthly Data Collection from Construction Companies

posted 10-28-2024
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By Bill Osterndorf of DCI Consulting Originally published October 7, 2024 The Office of Management and Budget ( OMB ) has given final approval to a monthly data collection from construction companies. The Office of Federal Contract Compliance Programs ( OFCCP ) had requested this data collection in February of 2024, and OMB gave its approval on September 29, 2024. Excel and PDF versions of the data collection form can be found on the Reginfo.gov website. Data Requested on Construction Employees The final version of the data collection form does not appear to have changed from the form that was released in July of 2024. We described the form, the ...
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OFCCP Publishes New Scheduling Letter for Construction Contractors

posted 10-28-2024
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By Mitchell Chamberlin and Evan Szarenski of DCI Consulting Originally published October 2, 2024 On October 2, 2024, the Office of Federal Contract Compliance Programs (OFCCP) announced that the Office of Management and Budget (OMB) has authorized a new scheduling letter and itemized listing for federal construction contractors and subcontractors. The new scheduling letter and itemized listing, which are used to initiate OFCCP compliance evaluations, appear to have a number of substantive changes from the version letter used previously. These changes include: Explicitly requesting payroll and personnel activity data for employees involved in ...
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Building a Secure Foundation: Cyber Strategies for Construction Firms

posted 10-22-2024
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By Hassan Khan and Carl Oliveri of Grassi Originally published September 30, 2024 Every day we hear about another malicious hack where perpetrators are utilizing brute force tactics to attack the construction industry. What makes the construction industry more vulnerable is that a contractor’s office does not end at four walls, it is those four walls plus job sites. And it is very rare that there is only one contractor on a job site at a time, creating another level of complexity when discussing cyber security protocols for the construction industry. The construction industry must deploy a multi-faceted approach to mitigate against brute force attacks ...
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Alabama Supreme Court’s Recent Ruling on Indemnity Clauses Could Impact Construction Contracts: Key Drafting Considerations

posted 10-22-2024
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By J. Christopher Selman and Zachary B. Stewart of Bradley Arant Boult Cummings LLP Originally published October 10, 2024 Hark! A recent Alabama Supreme Court indemnity decision, Mobile Infirmary Association v. Quest Diagnostics Clinical Laboratories , may require you to retrieve your drafting pen. Although not a case involving a construction dispute, Mobile Infirmary does address a key component of risk shifting in construction contracts — the indemnity clause. Put simply, contractual indemnity is the right of one party (the indemnitee) to claim reimbursement for a loss from another party (the indemnitor). Unlike nearly every other state, Alabama ...
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Water Infrastructure Projects Show Rising Need for Surety Bonds

posted 10-14-2024
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By Dan Pope of Old Republic Surety Company The United States has a lot of work to do if it wants to maintain its national network of drinking water infrastructure. That’s according to a recent report from the Environmental Protection Agency (EPA), which estimates the country needs a 20-year capital improvement of $625 billion . That money would be allocated towards the repair of existing infrastructure, as well as the construction of new infrastructure projects at the federal, state, and local levels. Agents specializing in surety bonds should be aware of the opportunity presented by the prospects of these large-scale public works projects. The American ...
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Navigating Surety Risk: A Strategic Guide for Construction and Commercial Firms

posted 10-08-2024
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By IAT Insurance Group Originally published September 23, 2024 In today's volatile economic climate, selecting the right surety partner has never been more critical. With high inflation, increased claims, and new entrants in the surety market, businesses face unprecedented challenges. IAT Surety’s comprehensive guide, " Navigating Surety Risk: 3 Best Practices for Construction Businesses and Commercial Firms ," offers invaluable insights into forging strategic partnerships that enhance stability and growth. From financial stability to industry expertise and service differentiation, this covers the essential characteristics to look for in a surety partner. ...
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EEOC Continues to Shine Spotlight on Construction Industry

posted 10-02-2024
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By Allegra A. Sinclair , Scott R. Green , and Caroline J. Berdzik of Goldberg Segalla Originally published September 12, 2024 KEY TAKEAWAYS: The EEOC has noted workplace harassment is prevalent on many construction jobsites, with some of the most egregious incidents investigated occurring in the construction industry Given the EEOC’s pronounced interest in the industry, an uptick in enforcement actions involving construction employers will likely continue Reviewing EEOC guidelines and incorporating its best practices will help employers comply with nondiscrimination laws In a post last year, we discussed how examining the EEOC’s ...
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