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Happy Holidays From The Far Council -- Proposed Restrictions On Allowable Airfare

Client Alert | 1 min read | 12.21.07

In a proposed change to FAR 31.205-46(b) (72 Fed. Reg. 72325 (Dec. 20, 2007)), the FAR Council is seeking public comments on a proposal to change the standard for allowable airfare from "the lowest customary standard, coach, or equivalent airfare offered during normal business hours" to nothing "in excess of the lowest priced coach class, or equivalent, airfare available to the contractor during normal business hours." While it appears from the comments in the proposed regulation and what is known about the background of this proposal that the principal purpose of the proposal is to measure the unallowable cost attributable to premium airfares by disallowing the excess over the lowest available discounted airfare available, the proposal obviously has the potential for creating serious difficulties for all contractors and all travel where the lowest price "available to the contractor" is determined in an ephemeral internet market that changes literally from minute to minute and depends on a variety of factors including the fliers' willingness to accept advance purchase and minimum stay requirements, restrictions on changes and refundability, and choice of carrier.

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Client Alert | 1 min read | 04.18.24

GSA Clarifies Permissibility of Upfront Payments for Software-as-a-Service Offerings

On March 15, 2024, the General Services Administration (GSA) issued Acquisition Letter MV-2024-01 providing guidance to GSA contracting officers on the use of upfront payments for acquisitions of cloud-based Software-as-a-Service (SaaS).  Specifically, this acquisition letter clarifies that despite statutory prohibitions against the use of “advance” payments outside of narrowly-prescribed circumstances, upfront payments for SaaS licenses do not constitute an “advance” payment subject to these restrictions when made under the following conditions:...