DOD Seeks Comments on Insourcing Notification Interim Rule

Late last month we learned that the DOD issued an interim rule about “private sector notification of in-sourcing actions,” and invited small business concerns and other interested parties to submit written comments about its impact.  This interim rule revises DFARS 237.102-79, and requires contracting officers to provide “written notification to affected incumbent contractors of Government in-sourcing determinations.”  The notification must be provided within 20 business days of insourcing decision and must “summarize the requiring official’s final determination as to why the service is being in-sourced.”  Although the interim rule essentially tracks much of the guidance found in the DOD’s January 2013 memorandum, the DOD’s invitation to submit written comments provides another great opportunity for contractors to voice their concerns about the current notification framework and its impact.  For example, the interim rule is silent about what specific information the contracting officer’s written notice must contain; it appears to be discretionary.  In our opinion, the contracting officer should be required to report on all aspects of an agency’s cost comparison analysis: more transparency will lead to better accountability and increased uniformity in insourcing decisions.  Moreover, we believe the notification should be provided within a week of the insourcing decision to provide the contractor more time to prepare for the impacts of an insourcing decision.  Written comments must be submitted by December 30, 2013.