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New Limits On Use Of "Of A Type" Commercial Services

Client Alert | 1 min read | 10.19.09

Implementing statutory requirements, FAR has been amended with interim rules (74 Fed. Reg. 52852 (Oct. 14, 2009)) providing that, when purchasing services that are not offered and sold competitively in substantial quantities in the commercial marketplace but are "of a type" offered in the commercial marketplace, the services may be considered commercial items exempt from the cost or pricing data requirements of the Truth in Negotiations Act only if the contracting officer determines in writing that the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price of such services. In order to make the determination required by the new regulation, the contracting officer may request the offeror to submit prices paid for the same or similar commercial items under comparable terms and conditions by both Government and commercial customers and if the contracting officer determines that such comparable information is not sufficient to determine the reasonableness of price, the contracting officer may request other relevant information regarding the basis for price or cost, including information on labor costs, material costs, and overhead rates.

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Client Alert | 4 min read | 05.13.24

Harmonizing AI with EEO Requirements: OFCCP’s Blueprint for Federal Contractors

Now more than ever, federal contractors find themselves at the intersection of innovation and regulation, particularly in the realm of Artificial Intelligence (AI).  AI is now incorporated into a broad range of business systems, including those with the potential to inform contractor employment decisions.  For that reason, the Office of Federal Contract Compliance Programs (OFCCP) has issued new guidance entitled “Artificial Intelligence and Equal Employment Opportunity for Federal Contractors” (the “AI Guide”).  OFCCP issued the AI Guide in accordance with President Biden’s Executive Order 14110 (regarding the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”), which we reported on here.  The AI Guide provides answers to commonly asked questions about the use of AI in the Equal Employment Opportunity (EEO) context.  The AI Guide also offers “Promising Practices,” which highlight a number of important considerations for federal contractors.  Focusing on federal contractors’ obligations and attendant risks when utilizing AI to assist in employment-related decisions, the AI Guide also provides recommendations for ensuring compliance with EEO requirements while harnessing the efficiencies of AI....

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