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Government Contracts Monitor

Claims and Disputes

A Certified Claim is Only as Valid as Its Certification Signature

Preparing and submitting contract claims is a time-consuming and expensive endeavor. The last thing a contractor wants is for all that time and expense to be for naught. The recent Armed Services Board of Contract Appeals (ASBCA) decision in the case of NileCo General Contracting LLC, ASBCA 60912, reiterates the vital importance of a contractor’s dotting its “i’s” and crossing its “t’s”--and…

It Might Be Reasonable to Incur Costs for Three Months before the Notice to Proceed, But Be Careful

Contractors often find themselves caught between a rock and a hard place, where the rock is the need to get ready to perform the contract and the hard place is the lack of a notice to proceed. Firms facing this dilemma must determine whether and to what extent they should incur costs without a notice to proceed and how long those costs can reasonably be incurred. These issues lie at the core of…

“It’s in There” -- Miller Act Bonding Requirements Are Read into Construction Contracts under the Christian Doctrine

The Armed Services Board of Contract Appeals (ASBCA) recently reaffirmed its January 2017 decision in K-Con, Inc., ASBCA Nos. 60686, 60687, 17-1 BCA ~ 36,632, holding that, pursuant to the Christian doctrine, the bonding requirements set forth in the Miller Act (and codified at FAR 52.228-15) are mandatory clauses that must be included in government construction contracts if they are omitted. In…

Short Take: GSA Clarifies Jurisdiction Over Fair Opportunity Complaints Under GSA Multiple-Award Contracts

The General Services Administration (GSA) recently issued a Final Rule, effective January 9, 2017, amending the General Services Administration Acquisition Regulation (GSAR) to clarify that the Ordering Agency Task and Delivery Order Ombudsman has jurisdiction and responsibility to review and resolve “fair opportunity” complaints on task and delivery orders placed against GSA multiple-award…

Reverse Auctions: Beware “Race-to-the-Bottom” vs. a Non-Responsible or Ineligible Bidder

Reverse auctions, while offering obvious advantages to the Government in appropriate circumstances, pose a number of challenges for bidders. These challenges include the need to exercise bidding restraint, and fight the animalistic instinct or desire to “win,” particularly at the cost of bidding too low.  This is particularly so where there is no prequalification of bidders, and some bidders,…

Short Take: Department of the Treasury Updates Prompt Payment Act Interest Rate

The Department of the Treasury has updated the Prompt Payment Act Interest Rate for the first half of calendar year 2017. The new rate has increased from 1.875 percent to 2.5 percent per year. Under the Contract Disputes Act (CDA), when prevailing on a monetary contract dispute, a contractor is entitled to recover simple interest, calculated at the applicable rate for every six-month period, on…

Don’t Invoice the Government for What You Haven’t Done

Last week, the Department of Justice (DOJ) announced that it had reached a settlement with Bechtel National Inc., Bechtel Corp., URS Corp. (predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.). In the press release, DOJ announced that the contractors have agreed to pay $125 million to resolve allegations under the…

The CPARS Process: Engage Early and Often

As federal contract dollars become more and more scarce, contractors must aggressively posture themselves to win contracts. Since past performance often plays a key role in source selection, a poor past performance rating can have far-reaching impacts. Fortunately, the Contractor Performance Assessment Reporting System (CPARS) process allows contractors to be actively engaged in ensuring that…

Contract Disputes: Clarity of Presentation Matters

Faced with the daunting process of legally resolving a contract dispute, contractors too often forget one of the strongest tools at their disposal (and one over which they have the most control): a clear presentation of their case so that, ideally, the dispute can be resolved at the agency level. Of course, resolution with the agency is not always possible, which is all the more reason…

ASBCA Allows Tolling of Appeal Period Where Contracting Officer Fails to Advise Of Right to Appeal

Under the Contract Disputes Act (CDA), a contractor who receives a negative decision from a contracting officer may appeal the decision to the Armed Services Board of Contract Appeals (ASBCA). ASBCA’s jurisdiction over appeals is predicated upon the proper submission of a claim by a contractor to a contracting officer for decision, the issuance of an adverse decision on the claim by the…

 

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