Business Development Center of Schoolcraft Collegetop
Schoolcraft College's Business Development Center is the home of the Michigan Small Business & Technology Development Center and Procurement Technical Assistance Center. The Center was created in 1985 to serve the special needs of the business community and to provide a single point of contact for companies seeking assistance.
 
Our Mission: To facilitate community economic development through a continually improving program of business services.
Michigan Small Business & Technology Development Center PTAC of Schoolcraft College
June 2010 Newsletter
Articles In This Issue
IRS Embraces New Applications
5 Ways Your Public Library Can Help Your Business Grow
Filing a Claim under the Contract Disputes Act - a Very Useful
GAO report finds Pentagon acquisition becoming more efficient
Contracted Training
 734-462-4441
Position your company for future opportunities.  Schoolcraft College Contracted Training provides effective, high quality training solutions for business.  We offer the programs and services you need to increase your employees' performance, gain a competitive market advantage, and move you in the right direction. 
Upcoming Seminars
In addition to our SBTDC training courses, Schoolcraft College offers the following for new and existing businesses:
  • All About Social Media & Blogging
  • QuickBooks: Introduction - Online Course
  • Business & Marketing Writing - Online Course
  • The Patent Process
  • Marketing Your Patented Product
For information, please visit:
IRS Embraces New Applications to Make Tax Information More Accessible to Small Businesses and the Self-employed
 
Maximizing the Web's convenience, accuracy and speed, IRS.gov, IRS's web site, now assists millions of individual taxpayers, tax professionals, and small business owners to better understand and meet their tax responsibilities. 
 
Updated Virtual Small Business Tax Workshop
 
The IRS's Virtual Small Business Tax Workshop is an interactive resource to help small business owners learn about their federal tax rights and responsibilities. This dynamic educational product, available online and on CD 24/7 from your computer, consists of nine stand-alone lessons that can be selected and viewed in any sequence. A bookmark feature makes it possible to leave and return to a specific point within the lesson. Users also have access to a list of useful online references that enhance the learning experience by allowing them to view references and the video lessons simultaneously.
 
The Virtual Small Business Tax Workshop is the first of a series of video products designed exclusively for small business taxpayers. A new companion series called, "Your Guide to an IRS Audit" is in development with plans for a summer 2010 launch.
 
IRS.gov now features audio and video
 
IRS is augmenting its curriculum of online learning and educational products for the small business community by developing new live broadcasting, phone forums and webinars, and offering audio and video presentations.  
 
Testing social media

The IRS is testing social media. We have launched a YouTube video site at YouTube - irsvideos's Channel and an iTunes podcast to help taxpayers take full advantage of the 2009 tax provisions in the American Recovery and Reinvestment Act.
 
The IRS YouTube channel debuted with seven Recovery videos in English and American Sign Language and eight in Spanish plus other languages.
 
People without an iTunes account can hear those same podcasts, in English and Spanish, on IRS.gov's Multimedia Center. People can also visit the audio site at iTunes to listen to IRS podcasts about ARRA tax credits.
 

To get the most timely IRS news and information about products and services for small businesses and the self-employed, subscribe to e-News on IRS.gov at http://www.irs.gov/businesses/small/article/0,,id=154825,00.html, click "Subscribe Now" at the bottom of the page and enter your e-mail address.
5 Ways Your Public Library Can Help Your Business Grow 
 
As a business person, your tax dollars support your local library. Get the most out of your investment by using the library to start or grow your business. Here are just a few ways your library can help Michigan's small businesses. 
 
Your Own Research Department

Michigan residents have access to the Michigan Electronic Library, or MeL. You'll find links to helpful business and economic information, databases such as the Business and Company Resource Center, which is loaded with up-to-date topical business information and company intelligence including market share data, financials and earnings estimates, and much more. Many libraries have additional databases for users, including Demographics Now and Reference USA, which provide access to local demographic information so you can analyze your market, consumers and the competition. The Small Business Resource Center database provides sample business plans, how-to guides, legal forms and more. Many services are available online if you have a library card, others you can use while in the library.

First Class Business Library

Instead of buying the latest book by that famous business guru, just borrow it from your local library. And cancel those expensive subscriptions to business periodicals and read the library's copies. Many books are available online as downloadable electronic books or audio books. If your library doesn't have the material you are looking for, you can often request to have it delivered from another library.

Just Ask! 

Librarians are trained to weed through the information jungle and find answers to tough questions. Many librarians offer reference assistance by phone or email, some even have live real-time chat and text message reference. In person visits are also welcomed. 
 
Classes for You and Your Employees


Many public libraries offer free computer skills classes. Offerings range from basic Microsoft Excel, Word and PowerPoint to specialized offerings such as using Google Apps and SEO to blogging and social networking. Call your local library for a list of available classes.

A Home Office Away from Home

Libraries are mini technology centers providing computers, Wi-Fi, copiers, scanners, wireless printing and faxing. Many have small meeting rooms and other amenities, such as coffee shops or vending. If you are on the road, stop in to a public library to check your email, make copies or take a break.
Most Metro-Detroit libraries have reciprocal borrowing privileges so if you have a valid library card, you can use it at many libraries. To find out what services and materials are available at your local library, just call.
 
This article was submitted by Laurie Golden, Marketing & Communications Manger, Canton Public Library.    
 
 
 
Filing a Claim under the Contract Disputes Act - a Very Useful
Instrument in a Contractor's Toolbox

Much is written concerning how a contractor goes about getting awarded a Government contract under the Federal Acquisition Regulation ("FAR") and how to meet the contract's requirements, but what happens if a contractor and the Government interpret a contract's requirements differently or if they reach a different conclusion with regard to how much a contractor is to be paid under the terms of a contract?  If the matter cannot be resolved through discussions with the agency's contracting officer ("CO") and the two parties hit an impasse, the matter becomes a dispute and must be resolved under the procedures prescribed by the Contract Disputes Act of 1978 (as amended) ("the CDA"), 41 U.S.C. §§ 601-13.  The CDA, which is incorporated into the FAR in Subpart 33.2, allows for the adjudication of "all disputes arising under or relating to" a contract that includes the clause found at FAR Subpart 52.233-1, Disputes.  This clause, or its Alternate I, should be inserted in every Federal contract, no matter its type or dollar value, unless the contract is with "[a] foreign government or agency of that government, or [a]n international organization or a subsidiary body of that organization, if the agency head determines that the application of the [CDA] to the contract would not be in the public interest."  FAR Subpart 33.203(b).

The CDA Process

Under the FAR, the CDA is the only permissible vehicle for resolving contractual disputes.  The CDA process begins with a "claim," which is a written demand or assertion by either the contractor or the Federal Government seeking:  (1) the payment of a sum certain amount the contracting party believes it is owed; (2) the adjustment or interpretation of contract terms; or (3) some other relief arising under or relating to the subject contract.  FAR Subpart 52.233-1(c).  To be valid, a claim must be made in writing, it must be submitted within six years of accrual of the claim, and it must include specific certification language if it is for an amount exceeding $100,000.  FAR at 52.233-1(d).  The accrual of a claim occurs when all events in dispute are known or should be know by the claimant.  FAR at 33.201.
 
Once a CO receives a claim for an amount that is $100,000 or less, he or she has 60 days to render a decision on the matter.  FAR at 52.233-1(e).  If the claim exceeds $100,000, the CO has 60 days to either issue a decision on the claim or notify the contractor of the date by which the decision will be made.  FAR at 52.233-1(e).  If a CO fails to issue a decision within the required time periods, it is considered a "deemed denial" and a contractor is eligible to file an appeal or suit on the claim.  FAR at 33.211(g).  When deciding the claim, the CO must prepare a written decision that includes a description of the claim or dispute, a reference to the pertinent contract terms, a statement of the factual areas of agreement and disagreement, a statement of the CO's final decision with supporting rationale, and an explanation of the contractor's right to appeal the final decision and the process for doing so.  FAR at 33.211(a).
 
If a contractor wishes to appeal the CO's final decision to a board of contract appeals-in most cases this will be either the Armed Services Board of Contract Appeals ("ASBCA") or the Civilian Board of Contract Appeals ("CBCA")-the company has 90 days from receipt of the decision to file such an appeal with the appropriate board, with a copy of the appeal also being sent to the CO.  Alternatively, the contractor may appeal the CO's final decision to the United States Court of Federal Claims ("USCOFC") by filing an action at that court within one year of receipt of the CO's final decision.  If a contractor is not satisfied by a board or USCOFC decision, it may appeal such a decision, and eventually the matter could end up at the United States Supreme Court, although that would be an exceedingly unusual event.

Types of Disputes Covered by the CDA

There are many contractual dispute matters that can be resolved through the CDA process, including an inability to access a work site or complete a requirement due to matter's beyond the contractor's control, a Government failure to disclose important information concerning the contract, defective specifications, a change in the scope of work required to be performed, a lack of cooperation by the Government during contract performance, a mistake by one or both of the contracting parties when drafting or responding to a contractual action, a site's condition being different than as described in the contract, a contract requirement that it is impossible to meet, and the Government failing to provide property or facilities as required under the terms of a contract.  There are many others, as most matters covered in a Government contract can be disputed through the CDA process.  The most important things for a contractor to do when a dispute arises is to carefully review the contract and its clauses to determine exactly what it states, keep good records of the matter in dispute and the costs associated with it, ensure the Government is informed of the matter that is being disputed and its status, and continue working on the contract to the best of its ability while the dispute is being resolved. 

Subcontractors

What if your company is a subcontractor on a Federal contract, can it file a claim against the Government?  In most situations a subcontractor cannot file a claim directly against the Government because it does not have a direct contractual  relationship or "privity" with the Government.  As a result a subcontractor usually has to rely on an indirect or sponsored claim to resolve a contractual dispute with the Government.  Using this process, a prime contractor sponsors a claim by one or more of its subcontractors by bringing an appeal on behalf of the subcontractor(s) or by permitting the subcontractor(s) to bring an appeal in the prime contractor's name.  Sponsored claims are permitted only if the prime contractor can charge the cost of the subcontractor's claim to the Government or make a claim against the Government based on the subcontractor's recovery.  If a prime contractor is unwilling to consent to a sponsored claim and the subcontract does not authorize such an action, the subcontractor must either settle its dispute directly with the prime contractor or make the argument to the CO that it was an intended third party beneficiary of the prime contract.  However, a third party beneficiary claim only is applicable when the Government has made payments directly to the subcontractor for work it has performed, and even then the subcontractor has to meet a very difficult burden of proof.  Thus, before a subcontractor enters into a contract with a prime, it should ensure the subcontract addresses its ability to file a sponsored claim against the Government.

If a company has Government contracts, or is considering entering the Federal contract marketplace, it is critically important that it understand the CDA process.  It is a powerful tool that a contractor can utilize if it believes it is being required to perform in a manner inconsistent with the contract, but the contractor must maintain detailed records to maximize its benefits.  When a contractor experiences an unanticipated event, it should review the terms of the contract and any correspondence from the Government concerning the event and then formulate a long-term plan to ensure it is properly compensated for its work.  If the matter cannot be resolved through discussions with the Government and a subsequent amendment to the contract, it may require the submission of a claim.  If the contractor has not maintained extensive documentation of all events preceding the claim submission, however, its likelihood of success through the CDA process is greatly diminished.  Thus, no matter how hectic things may get, a contractor should allot some time during contract performance to review matters in dispute and to implement necessary measures mindful of the fact a claim may subsequently need to be filed.    
          
George W. Ash and Sean A. Sabin are members of the law firm of Foley & Lardner LLP in Detroit, where they specialize in government procurement issues. They may be reached at (313) 234-7100.
 
Note:  This update provides information of general interest presented in summary form, and does not constitute individual legal advice.
 

 
 
 
GAO report finds Pentagon acquisition becoming more efficient

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