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Alan Chvotkin: ACA to Change Contract Costs and Bidding Process

BXP44791Alan Chvotkin, Professional Services Council vice president and general counsel, expects the Affordable Care Act to influence the pricing and bidding process of future contracts, Federal News Radio reported Friday.

Melissa Dawkins writes one reform that the ACA will introduce is the “full-time” requirement for employees to work 30 or more hours a week compared to the existing 40-hour workweek.

Chvotkin told the station that the legislation will levy minimum thresholds for contractors to qualify or they would undergo the “play or pay” requirements.

“Companies are starting to bid now for work that will have to be performed after the effective date and it’s certainly unclear whether the government will allow modifications to those pricing rules after the Affordable Care Act goes into effect,” Chvotkin said.

He added that it will be hard to monitor a 30-hour workweek based on proposals from some companies, the station reports.

It remains unclear whether the change will exempt some employees from certain regulations, Chvotkin told Federal News Radio.

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