Legal Aspects of
Government Contracts-SDSU
Class One
Jack Friery
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Outline
Congress
 Federal agencies
 Contract authority
 GAO
 Acquisition methods

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Congress

Appropriates

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
Appropriation/Authorization Laws
Anti-deficiency Act
Passes Acquisition Laws



FPASA
ASPA
CICA
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Federal Agencies
Promulgate procurement regulations (FAR
& agency supplements)
 Execute programs
 Hear contract claims via Boards of
Contract Appeal

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Contract Authority
Government agents must have actual
authority
 Commercial organizations may be bound
by persons with apparent authority
 Ratification

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GAO
Audits
 Investigates
 Hears bid protests

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Acquisition Methods
CICA demands “full & open competition”
(with exceptions)
 Sealed bidding
 Negotiated acquisition
 Simplified acquisition
 Commercial item acquisition

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Contractor Qualification
Responsibility
 Defined
 Who decides?



Large businesses
Small businesses
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Legal Aspects of
Government Contracts-SDSU
Class Two
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Outline

Contract types


FP
Cost
Other contract types
 Sealed bidding
 Competitive negotiation

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Type of Specification Drives
Contract Type
Design spec
 Performance spec
 Milspec/federal spec
 Industry spec (e.g. ISO 9000)
 “Brand name or equal”

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Contract Types—Fixed-Price

Fixed-price



FFP
FP/EPA
FPI
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Contract Types—Cost

Cost-type

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
Cost & cost-sharing
CPIF
CPAF
CFPP
CPPC?
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Another Look at Types

IDIQ



T&M
LH
BOA
Requirements contract
 MAS (GSA)
 GWACs

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Sealed Bidding
Conditions for use
 Bidding & responsiveness
 Award
 Contract type
 Firm bid rule
 Late bids

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Competitive Negotiation
Conditions for Use
 Process
 RFP/RFQ
 Proposal
 Discussions
 Evaluation & award (“best value,” past
performance, debriefing, etc.)

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Legal Aspects of
Government Contracts-SDSU
Class Three
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Outline
Protests
 Socioeconomic issues
 Subcontracting

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Protests
Defined
 Forums
 Timeframes
 Grounds

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“Protest” Defined
FAR 33.101:
“A written objection by an interested party…” to
a solicitation or a proposed award.
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Protest Forums
Contracting Officer
 GAO
 Court of Federal Claims

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Protest Timeframes
Preaward
 Postaward

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Protest Grounds
Failure to follow announced rules
 No reasonable basis
 Bias?

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Socioeconomic Topics
Small Business
 SDBs & 8(a) firms
 HUBzones
 Affirmative action
 Labor standards
 Buy American
 Drug-free workplace/workforce

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Subcontracts
Privity
 CPSR & consent to subcontracts
 Subcontract clauses & flowdowns

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Legal Aspects of
Government Contracts-SDSU
Class Four
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Outline
Costs
 Payments/Financing
 Intellectual Property

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Costs
Why & when significant?
 Cost principles
 Allowability & Allocability &
Reasonableness
 Particular costs
 Cost accounting standards
 Truth in Negotiations Act

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Payment & Financing
Prompt Payment Act
 Contract financing


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Partial payments
Progress payments
Advance payments
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Intellectual Property
What is it?
 Who owns it?
 Two sets of clauses:



DOD
Non-DOD
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Legal Aspects of
Government Contracts-SDSU
Class Five
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Outline
Fraud & Ethics
 Specifications
 Government Property

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Fraud

Civil false claims

Qui tam
Criminal false claims
 False statements
 Major Fraud Act

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Ethics
Kickbacks
 Bribes & gratuities
 Procurement Integrity Act
 Byrd Amendment
 Suspension & debarment

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Specifications
“Warranty” of specs
 Impossibility/impracticability
 Substantial performance

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Government Property
GPF
 Risk of loss

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Legal Aspects of
Government Contracts-SDSU
Class Seven
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Outline
Changes
 Delays
 Equitable adjustments

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Changes
Types of changes allowed
 In scope?
 Cardinal changes
 Duty to proceed
 Commercial contract rule

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“Constructive” Changes
Contract ambiguities
 Government failure to cooperate
 Bad specs
 Nondisclosure
 Acceleration

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Delays
Government Stop-work orders
 “Constructive” delays
 Force majeure—excusable delays

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Equitable Adjustments
Defined
 “Adjustments” compared
 Proving claims
 Total cost claims

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Legal Aspects of
Government Contracts-SDSU
Class Eight
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Outline
Inspection
 T for D
 T for C

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Inspection
Clauses: commercial vs. government
 Certificate of conformance
 Place & costs
 Rejection/correction
 Acceptance & finality
 Warranties

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T for D
Clauses
 Basis & cure notices
 Force majeure
 Government waiver
 Government remedies

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T for C
Why the right?
 Commercial contracts?
 Flowdown
 Christian doctrine
 Procedures

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Legal Aspects of
Government Contracts-SDSU
Class Nine
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Outline
Simplified contracting
 Commercial contracting
 Claims & Disputes

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Simplified Contracting
Dollar thresholds
 Soliciting bids





Oral solicitations <$25k
Simplified evaluation schemes
Local businesses
At least three sources
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Commercial Contracting
Definitions: “of a type”
 Streamlined solicitation & simplified
evaluation
 Only FFP, FPEPA, or (some) incentive
contracts
 Unique T’s & C’s: FAR 52.212-4—or
negotiate others

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Claims & Disputes
Contract Disputes Act of ’78
 Disputes Clause
 Defined: does not include routine requests
for payment
 Time for submission
 Prime/sub
 Certificate & Interest accrual

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Legal Aspects of
Government Contracts-SDSU
Class Ten
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Outline
Claims & Disputes
 Appeals to BCAs
 PL 85-804

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Claims & Disputes
Contract Disputes Act of ’78
 Disputes Clause
 Defined: does not include routine requests
for payment
 Time for submission
 Prime/sub
 Certificate & Interest accrual

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Claims & Disputes (con’t)

Contracting Officer decision


Timing
Content
BCA appeal
 COFC appeal
 Contractor duty to proceed

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Boards of Contract Appeal
COD
 Notice of Appeal
 Jurisdiction
 Complaint & Answer
 Discovery—the Rule 4 file
 Hearing
 ADR?

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ADR Resources
Electronic Guide to Federal Government
ADR—http://www.adr.af.mil/iadrwg/
 Air Force ADR Toolkit—
http://www.safaq.hq.af.mil/contracting/to
olkit/adr/menu.html
 American Arbitration Association
Website—http://www.adr.org/

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Extraordinary Relief

PL 85-804
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Conclusion
Wrap-up
 Questions

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