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…
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…
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…
The Civilian Board of Contract Appeals (CBCA or Board)’s recent decision in Consultis of San Antonio, Inc. v. Department of Veterans Affairs demonstrates the importance of selecting the right contracting officer to resolve a dispute under a Federal Supply Schedule (FSS) task order. If the dispute involves interpreting the schedule contract terms and conditions, the issue must be presented to and…
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, 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,…
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…
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…
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…
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…
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…