The Department of Defense, General Services Administration, and National Aeronautics and Space Administration today issued a proposed rule that would amend the Federal Acquisition Regulation to address the 2 percent tax on certain foreign procurements imposed by the James Zadroga 9/11 Health and Compensation Act of 2010 (PL 111-347). The Act imposes on any foreign person that receives a specified federal procurement payment a tax equal to two percent of the amount of the payment. The rule, Unallowability of Costs Associated With Foreign Contractor Excise Tax (FAR Case 2011-011), would revise the FAR to provide that the costs of the two percent tax are not allowable and are not included in foreign fixed-price contracts and foreign fixed-price contracts with foreign governments. Comments are due April 23, 2012. For the text of the Federal Register notice, click here: http://www.gpo.gov/fdsys/pkg/FR-2012-02-22/pdf/2012-3905.pdf.
Subscribe to GovConBlog
Popular Topicsacquisition allowability audit budget compliance contract clause contract clauses costs Counterfeit Electronic Parts DCAA Department of Defense Department of Labor DFARS DOD ethics executive order False Claims Act FAR FAR 31 FAR Matrix FBO Federal Acquisition Circular Federal Acquisition Regulation Final Rule flowdown GAO government oversight government spending GSA Jobs Lockheed Martin NASA Oversight President Obama proposals proposed rule reporting requirements SBA sequestration small business spending subcontract transparency unallowable waste