Government contracts in a nutshell / by Steven W. Feldman, W. Noel Keyes.
2011
KF850 .K49 2011 (Map It)
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Details
Author
Title
Government contracts in a nutshell / by Steven W. Feldman, W. Noel Keyes.
Published
St. Paul, MN : West, [2011]
Copyright
©2011
Call Number
KF850 .K49 2011
Edition
Fifth edition.
ISBN
9780314268518
0314268510
0314268510
Description
lix, 702 pages ; 19 cm.
System Control No.
(OCoLC)706077899
Note
Previous editions by W. Noel Keyes.
Includes index.
Includes index.
Series
Record Appears in
Table of Contents
Preface
v
Glossary
xxxiii
Table of Cases
lvii
pt. I
GENERAL
ch. 1
Federal Acquisition Regulations System
1
A.
Regulations Issued Under the Basic Statutes
1
1.1.
In General
1
1.2.
The Federal Acquisition Regulation
3
1.3.
Revisions to the FAR
5
1.4.
The Force of Procurement Regulations---The Christian Doctrine
6
1.5.
FAR Implementation and Supplementation
8
1.6.
FAR Deviations
9
1.7.
Other Procurement Policies and Directives
10
B.
Contracting Authority and Responsibilities
11
1.8.
Authority to Represent the Government---The Contracting Officer
11
1.9.
Government Agents and Actual Authority
13
1.10.
Apparent Authority, Estoppel and Ratification
15
(a).
Apparent Authority
15
(b).
Estoppel
16
(c).
Ratification
18
1.11.
Illegal Contracts
19
(a).
In General
19
(b).
Cost Plus Percentage of Cost Prohibition
21
(c).
Anti-Deficiency Act
22
C.
Determinations and Findings
23
1.12.
In General
23
ch. 2
Definitions of Words and Terms
25
2.1.
In General
25
ch. 3
Improper Business Practices and Personal Conflicts of Interest
27
3.1.
Ethics in Contracting
27
3.2.
Procurement Integrity
27
3.3.
Antitrust Violations
30
3.4.
Contingent Fees for Soliciting or Obtaining a Contract
32
3.5.
Anti-Kickback Act
35
3.6.
Buying-In
36
3.7.
Contracts With Government Employees
38
3.8.
Conflicts of Interest and Former and Current Government Employees
40
(a).
Former Employees
40
(b).
Current Employees
42
3.9.
Contractor Responsibility to Avoid Improper Business Practices
44
3.10.
Voiding and Rescinding Contracts
46
3.11.
Limits on Payment to Influence Federal Transactions
47
3.12.
Fraud, Whistleblowers and the Civil False Claims Act
47
(a).
The "Knowledge" Requirement
49
(b).
Definition of a "Claim"
50
(c).
Penalties
52
(d).
"Qui tam" Provisions
53
(e).
Qui tam Relators
54
(f).
Qui tam Limitations
54
(g).
Qui tam Procedures
56
(h).
Qui tam Recovery
58
(i).
Other Whistleblower Statutes
58
3.13.
The Major Fraud Act
59
3.14.
Lobbying Restrictions
60
(a).
Byrd Amendment
60
(b).
Lobbying Disclosure Act
61
ch. 4
Administrative Matters
62
4.1.
In General
62
4.2.
Signatures of Contracting Officer and Contractor
62
4.3.
Paper Documents
65
4.4.
Safeguarding Classified Information
65
4.5.
Contract Reporting, Record Retention and Closeout
65
4.6.
Electronic Commerce in Contracting
68
4.7.
Central Contractor Registration
69
4.8.
American Recovery and Reinvestment Act Reporting Requirements
69
ch. 5
Publicizing Contract Actions
71
5.1.
Dissemination of Information
71
5.2.
Synopses of Proposed Contract Actions
72
(a).
In General
72
(b).
Publicizing and Response Times
73
(c).
Legal Consequences
74
(d).
Special Situations
77
(e).
Publicizing Subcontract Opportunities
77
5.3.
Synopses of Contract Awards
78
5.4.
Announcement of Contract Awards
79
5.5.
Release of Procurement Information
79
ch. 6
Competition Requirements
80
6.1.
In General
80
6.2.
Use of Competitive Procedures
81
6.3.
Full and Open Competition After Exclusion of Sources
83
6.4.
Other Statutes Providing for Contracting Without Full and Open Competition
84
(a).
In General
84
(b).
Only One Responsible Source
85
(c).
Unusual and Compelling Urgency
89
(d).
Industrial Mobilization; Experimental Development; Research Work; Public Interest; National Security; or Expert Services in Litigation
92
(e).
International Agreements
93
(f).
Authorized or Required by Statute
95
(g).
National Security
95
(h).
Public Interest
96
6.5.
Competition Advocates
97
pt. II
ACQUISITION PLANNING
ch. 7
Acquisition Plans and Outsourcing/Privatization
98
7.1.
Advance Procurement Planning
98
7.2.
Acquisition Plans
100
7.3.
Bundling
102
7.4.
Outsourcing/Privatization
104
(a).
OMB Circular A 76
104
(b).
FAIR Act
107
(c).
Agency Privatization Statutes
107
7.5.
Equipment Lease or Purchase
108
7.6.
Inherently Governmental Functions
109
ch. 8
Required Sources of Supplies and Services
112
8.1.
In General
112
8.2.
Excess Personal Property
113
8.3.
Ordering From Federal Supply Schedules
114
(a).
General Policy
114
(b).
Multiple Award Schedules
114
(c).
General Competition Policies
116
(d).
Agency Restrictions on Competition
118
(e).
Open Market Rules
119
(f).
FSS Solicitation Policies
120
(g).
FSS Technical Evaluation Principles
122
(h).
Determining Low Overall Cost
125
(i).
Price Reductions
126
(j).
Contract Administration Responsibilities
129
8.4.
Acquisitions From Federal Prison Industries
130
8.5.
Acquisition From the Blind and Other Severely Disabled Individuals
131
8.6.
Acquisition of Printing and Related Supplies
134
8.7.
Leasing of Motor Vehicles
134
ch. 9
Contractor Qualifications
136
A.
Responsible Prospective Contractors
136
9.1.
In General
136
9.2.
Responsibility Criteria
137
9.3.
Information Regarding Responsibility
141
9.4.
Preaward Surveys
143
9.5.
Determinations and Documentation
145
9.6.
Challenge to Determination of Responsibility
145
9.7.
Definitive Responsibility Criteria
147
9.8.
Challenge to Determination of Nonresponsibility
149
B.
Qualified Product---First Article Approval
151
9.9.
Qualified Products
151
9.10.
First Article Testing and Approval
154
9.11.
First Article Waivers
156
C.
Debarment, Suspension and Ineligibility
157
9.12.
Debarment and Suspension
157
9.13.
Debarment
159
(a).
Other Debarment Procedures
163
(b).
"De facto" Debarments
164
(c).
Debarment and Contract Formation
165
9.14.
Suspension
166
(a).
De facto Suspension
168
(b).
Suspension and Contract Formation
169
D.
Organizational Conflicts of Interest
169
9.15.
In General
169
9.16.
FAR Standards
171
ch. 10
Market Research
174
10.1.
Market Research
174
ch. 11
Describing Agency Needs
177
11.1.
In General
177
11.2.
Other Policies
179
11.3.
Brand Name or Equal
180
11.4.
Brand Name Only
182
11.5.
Determining Agency Needs
184
11.6.
Restrictiveness
185
11.7.
Restrictiveness---Corollary Principles
187
11.8.
Ambiguity and Risk
190
11.9.
Delivery or Performance Schedules
192
11.10.
Liquidated Damages
193
(a).
In General
193
(b).
Measuring the Damages Period
194
(c).
Liquidated Damages Rate
194
(d).
Enforceability
195
(e).
Reasonableness of the Forecast
196
(f).
Difficulty in Estimating Loss
197
(g).
Relief From Liquidated Damages
197
11.11.
Priorities, Allocations, and Allotments
198
11.12.
Variations in Quantity
199
ch. 12
Acquisition of Commercial Items
200
12.1.
Commercial Item Policy
200
12.2.
Definitions
200
12.3.
Special Policies and Requirements
202
12.4.
Implementing the Federal Acquisition Streamlining Act
205
12.5.
Streamlined Procedures
206
12.6.
Agency Supplements
206
12.7.
Evaluation of Commercial Items
207
pt. III
CONTRACTING METHODS AND CONTRACT TYPES
ch. 14
Sealed Bidding
209
A.
Requirements of Sealed Bidding
209
14.1.
In General
209
14.2.
The Invitation for Bids
211
(a).
In General
211
(b).
Standard Forms
212
(c).
Specifications
213
(d).
Preaward Amendments
214
(e).
Canceling the IFB---Basic Policies
215
(f).
Canceling the IFB---Other Reasons
216
14.3.
Preparing the Bid
217
(a).
Following Instructions in the IFB
217
(b).
Other Aids to Bidding
219
(c).
Formulation of Prices
220
(d).
Acknowledgment of Amendments
221
(e).
Methods of Submission
222
(f).
Firm Bid Rule
223
B.
Opening of Bids and Award of Contract
224
14.4.
Bid Opening
224
(a).
Initial Handling by the Agency
224
(b).
Early or Late Bid Openings
225
14.5.
Late Bids
227
(a).
Exceptions
227
(b).
Faxed or Electronic Bids
228
14.6.
Eligibility for Award
229
14.7.
Responsiveness of Bids
230
(a).
General Policy
230
(b).
Minor Informalities
232
(c).
Bid Acceptance Period
233
(d).
Binding Legal Obligation
233
(e).
Firm Price
234
(f).
Completeness
234
(g).
Ambiguities
234
(h).
Acceptance of Nonresponsive Bids
235
(i).
Unbalanced Bids
236
(j).
Other Reasons for Bid Rejection
237
14.8.
Responsibility of Bidders
237
14.9.
Mistakes in Bids
238
(a).
Preaward Mistakes
238
(b).
Bid Verification
239
(c).
Other Preaward Mistakes
239
(d).
Postaward Mistakes
241
14.10.
Contract Award
243
C.
Two-Step Sealed Bidding
245
14.11.
Two-Step Sealed Bidding
245
(a).
Step One: Request for Technical Proposals
246
(b).
Step Two: Invitation for Bids
246
ch. 15
Contracting by Negotiation
248
A.
General Requirements for Negotiation
248
15.1.
The Government's Solicitation
248
(a).
The Government's Document
248
(b).
Standard Forms
249
(c).
Amendments
249
(d).
Cancellation
250
15.2.
Timeliness Requirements
251
B.
Source Selection
253
15.3.
Evaluation of Offers
253
(a).
Evaluation Factors
253
(b).
Source Selection Processes
255
15.4.
Government-Offeror Exchanges of Information---Prior to Competitive Range Determination
257
(a).
Presolicitation Exchanges
257
(b).
Exchanges Before Submission of Offers
257
(c).
Oral Presentations by Offerors
258
(d).
Clarifications After Proposal Submission
258
(e).
Communications Before Establishment of Competitive Range
259
(f).
Award Without Discussions
260
15.5.
Competitive Range
260
15.6.
Government-Offeror Exchanges of Information---After Competitive Range Determination
262
15.7.
Proposal Revisions
265
15.8.
Contractor Past Performance
266
15.9.
Price or Cost Evaluation
268
(a).
Price Analysis
269
(b).
Cost Analysis
270
(c).
Cost Realism Analysis
271
(d).
Unbalanced Pricing
272
15.10.
Profit
273
15.11.
"Best Value" Source Selection
274
15.12.
Truth in Negotiations Act
276
(a).
Applicability
276
(b).
"Cost or Pricing Data" Defined
277
(c).
Requiring Cost or Pricing Data
278
(d).
Submission of Data
279
(e).
Submission of Data---When Submitted
280
(f).
Submission of Data---Subcontractor Data
280
(g).
Exceptions and Waivers
281
(h).
Adequate Price Competition
281
(i).
Price Set by Law or Regulation
281
(j).
Commercial Item Procurements
282
(k).
Waiver
282
(l).
Liability for Defective Data
282
C.
Post-Selection Matters
284
15.13.
Notices and Debriefings
284
(a).
Preaward Notices and Debriefings
285
(b).
Postaward Notices and Debriefings
285
15.14.
Corrective Action After Award
287
15.15.
Unsolicited Proposals
287
ch. 16
Types of Contracts
289
A.
Introduction
289
16.1.
Restrictions on Types of Contracts
289
B.
Contract Types
290
16.2.
Fixed Price Contracts
290
(a).
Firm Fixed Price Contracts
290
(b).
Fixed Price Contracts With Economic Price Adjustment
291
16.3.
Cost Reimbursement Contracts
293
(a).
Cost Plus Percentage of Cost Prohibition
293
(b).
Other Limitations
294
(c).
Cost Plus Incentive Fee Contracts
296
(d).
Cost Plus Award Fee Contracts
297
(e).
Cost Plus Fixed Fee Contracts
298
16.4.
Indefinite Delivery Contracts
300
(a).
Definite Quantity Contracts
301
(b).
Requirements Contracts
302
(c).
Indefinite Quantity Contracts
304
16.5.
Time-and-Materials and Labor Hour Contracts
308
(a).
Time-and-Materials Contracts
308
(b).
Labor Hour Contracts
310
16.6.
Letter Contracts
310
16.7.
Agreements to Enter into Contractual Commitments
312
(a).
Basic Agreements
312
(b).
Basic Ordering Agreements
313
ch. 17
Options
315
17.1.
Basic Concepts
315
17.2.
Use of Options
316
17.3.
Exercise of Options
317
(a).
Form and Timing of Notice
318
(b).
Best Interests Requirement
318
(c).
Competition Rules
319
(d).
Protests and Disputes
320
pt. IV
SOCIOECONOMIC PROGRAMS
ch. 19
Socioeconomic Requirements
323
19.1.
Small Business Preferences
323
(a).
Small Business Concerns
323
(b).
Contract Set-Asides
324
(c).
Total Set-Asides
325
(d).
Partial Set-Asides
325
(e).
Certificates of Competency
326
(f).
Small Disadvantaged Businesses
328
(g).
The "8(a)" Program
329
(h).
Subcontracting
331
(i).
Women-Owned Small Businesses
332
(j).
Veteran-Owned Small Businesses
333
(k).
HUBZone Small Businesses
334
(l).
Other Procurement Preferences
335
(m).
Contract Bundling
335
(n).
Small Business Jobs Act of 2010
336
19.2.
Equal Access to Justice Act
336
(a).
Eligibility
337
(b).
"Prevailing Party"
337
(c).
Government Position Not "Substantially Justified"
337
(d).
Amount of Recovery
338
19.3.
Nondiscrimination Requirements
340
(a).
"Equal Opportunity" Clause
340
(b).
Miscellaneous Requirements
341
(c).
Administration and Enforcement
342
19.4.
Labor Standards Requirements
343
(a).
Walsh-Healey Act
343
(b).
Service Contract Act
345
(c).
Davis Bacon Act
346
(d).
Contract Work Hours and Safety Standards Act
353
(e).
Disputes
354
19.5.
Domestic and Foreign Product Preferences
355
(a).
Buy American Act
355
(b).
Balance of Payments Program
357
(c).
Trade Agreements Act
357
(d).
Berry Amendment
359
19.6.
Environmental Protection Requirements
359
19.7.
Drug-Free Workplace Act
360
19.8.
Immigration Policies
362
pt. V
GENERAL CONTRACTING REQUIREMENTS
ch. 27
Intellectual Property
363
27.1.
In General
363
27.2.
Patents
364
(a).
Title vs. License
364
(b).
Current Government Policy
365
(c).
FAR Coverage
366
(d).
Contractor Title Rights
367
(e).
Government License Rights
368
(f).
Patent Infringement
368
(g).
Contractor Indemnification of Government
370
(h).
Contractor Notice and Assistance
371
27.3.
Technical Data and Computer Software
371
(a).
Regulations
371
(b).
Types of Government Rights
372
(c).
FAR Coverage
374
(d).
Technical Data Under the FAR
374
(e).
Computer Software and Software Documentation Under the FAR
375
(f).
DFARS Coverage
376
(g).
Technical Data Under the DFARS
376
(h).
Computer Software and Software Documentation Under the DFARS
377
(i).
DFARS Procedures
378
(j).
Enforcing Data Rights
380
27.4.
Copyright
382
ch. 29
Taxes
384
29.1.
In General
384
29.2.
State and Local Taxes
385
29.3.
Contract Coverage
386
ch. 30
Cost Accounting Standards
388
30.1.
In General
388
30.2.
Applicability
390
30.3.
Exemptions and Waiver
390
30.4.
Types of CAS Coverage
391
30.5.
Contractor Obligations
392
30.6.
Disclosure Statements
394
(a).
Time of Submission
395
(b).
Form of Submission
396
30.7.
Individual Standards
396
ch. 32
Payment and Financing
401
32.1.
In General
401
32.2.
Contract Payments
402
(a).
Standard Contract Clauses
403
(b).
Partial Payments
404
(c).
Electronic Funds Transfer
404
32.3.
Prompt Payment Act
405
(a).
Applicability of the Act
406
(b).
Interest Penalties
406
(c).
"Proper" Invoices
407
(d).
Government Remedies
407
(e).
Common-Law Offset
408
(f).
Debt Collection Act
408
32.4.
Progress Payments
409
(a).
Progress Payment Amounts
410
(b).
Progress Payments and Title to Property
411
(c).
Suspension or Reduction of Progress Payments
411
32.5.
Advance Payments
412
32.6.
Performance-Based Payments
413
32.7.
Commercial Item Purchase Financing
414
(a).
Permissible Categories
414
(b).
Types of Payments
415
32.8.
Loan Guarantees
416
32.9.
Private Financing
416
ch. 33
Protests, Disputes and Appeals
418
A.
Protests
419
33.1.
Protests to the Agency
419
(a).
Procedures
420
(b).
Remedies
421
33.2.
Protests to the GAO
421
(a).
Definitions
422
(b).
Content of Protest
423
(c).
Filing Deadlines
423
(d).
Automatic Suspension of Contract Award or Performance
425
(e).
Agency Report and Comments
427
(f).
Hearings
429
(g).
Time for Decision
429
(h).
Flexible Alternative Procedures
430
(i).
Reconsideration
430
(j).
Remedies
431
33.3.
Protests to the U.S. Court of Federal Claims
433
(a).
Jurisdiction
433
(b).
Standing
434
(c).
Source of Procedures
435
(d).
Filing of the Complaint
435
(e).
Summary Judgment
436
(f).
Alternative Dispute Resolution
436
(g).
Standard of Review
436
(h).
Burden of Proof
437
(i).
Reconsideration and Appeal
438
B.
Disputes
438
33.4.
Contract Disputes---Overview
438
33.5.
The Disputes Path
440
(a).
Contracting Officer
441
(b).
Boards of Contract Appeals
442
(c).
Court of Federal Claims
442
(d).
Court of Appeals for the Federal Circuit
443
33.6.
The Claim and the Contracting Officer's Decision
443
(a).
Contractor Claims vs. Government Claims
444
(b).
Claim Submission
445
(c).
Definition of "Claim"
446
(d).
Sum Certain
448
(e).
Claim Certification
449
33.7.
Contracting Officer's Decision
451
(a).
Role in Disputes Process
451
(b).
Content
452
(c).
Timing
454
(d).
Delivery
455
(e).
Contractor's Duty to Proceed
456
C.
Appeals
456
33.8.
Contractor's Decision to Appeal
456
33.9.
Appeal to the Board of Contract Appeals
457
(a).
Taking the Appeal---Jurisdiction
457
(b).
Standing
458
(c).
Notice of Appeal
458
(d).
Rule 4 File
458
(e).
Abbreviated Proceedings---Submission Without Hearing
459
(f).
Expedited Appeals
460
(g).
Accelerated Appeals
461
33.10.
ADR and the ASBCA
461
(a).
Evaluating Whether ADR Is Appropriate
462
(b).
Initiating the ADR Process
462
(c).
Basic ADR Techniques
463
33.11.
Appeal to the Court of Federal Claims
464
(a).
Jurisdiction
464
(b).
Alternative Dispute Resolution
466
33.12.
Court of Appeals for the Federal Circuit
467
(a).
Review of Board Decisions
468
(b).
Review of COFC Decisions
468
pt. VI
SPECIAL CATEGORIES OF CONTRACTING
ch. 35
Research and Development Contracting
469
35.1.
In General
469
35.2.
Work Statements
472
35.3.
Contract Methods
474
35.4.
Solicitations
475
35.5.
Evaluation and Award
476
35.6.
Broad Agency Announcements
478
35.7.
Small Business Innovation Research Program
480
ch. 36
Construction and Architect-Engineer Contracts
483
A.
Construction Contracts
483
36.1.
Construction Contracts---Overview
483
36.2.
Construction Contracts vs. Supply Contracts---Similarities and Differences
485
(a).
Government Control
486
(b).
Work Site
487
(c).
Contract Clauses
487
(d).
Bonds
488
(e).
Labor Standards
490
(f).
Changes and Delays
490
(g).
Default Termination
490
(h).
Fiscal Constraints
491
36.3.
Construction Contracts vs. Service Contracts
492
36.4.
Differing Site Conditions
492
(a).
Overview
492
(b).
The FAR Clause
493
(c).
The Notice Requirement
494
(d).
Types of Conditions
494
(e).
Type I Conditions
495
(f).
Type II Conditions
495
(g).
Excluded Conditions
496
(h).
Standard "Site Investigation" Clause
496
(i).
Limitations on Duty
497
(j).
Government's Duty to Cooperate
497
(k).
Liability Disclaimers
498
B.
Architect-Engineer Services
498
36.5.
Architect-Engineer Services
498
(a).
The Brooks Act
498
(b).
Definitions
499
(c).
FedBizOpps Notice
500
(d).
Selection Criteria
501
(e).
Evaluation Boards
502
(f).
Documentation of Qualifications
503
(g).
Selection Authority
504
(h).
Simplified Purchase Selections
504
(i).
Negotiations and Award
504
pt. VII
CONTRACT MANAGEMENT
ch. 42
Delays and Suspensions of Work
507
42.1.
Compensable Delays---Supply and Service Contracts
508
(a).
Ordered Suspensions of Work
508
(b).
Constructive Suspensions of Work
508
(c).
Recovery for Constructive Suspensions
509
(d).
Limitations on Recovery
509
(e).
Types of Constructive Delays---Delays Involving Changes
510
(f).
Types of Constructive Delays---Delays Involving Faulty Specifications
511
(g).
Types of Constructive Delays---Delays in Furnishing Property
512
(h).
Types of Constructive Delays---Delays in Approval or Inspection of Work
512
(i).
Types of Constructive Delays---Delays Caused by Government Interference
512
42.2.
Excusable Delays---Supply and Service Contracts
512
(a).
Standard "Default" Clause
513
(b).
Elements and Proof
514
(c).
Government Sovereign Acts
514
(d).
Government Contractual Acts
515
(e).
Weather
516
(f).
Subcontractor Delays
516
(g).
Unenumerated Causes of Excusable Delay
517
42.3.
Construction Delays and Suspensions of Work
517
(a).
Ordered Suspensions
518
(b).
The Reasonableness Requirement
519
(c).
Constructive Suspensions---In General
519
(d).
Constructive Suspensions---Government Fault
520
(e).
Constructive Suspensions---Unreasonable Delay
523
(f).
Recoverable Costs
524
42.4.
Notice and Claim Requirements
526
42.5.
Concurrent Delays
527
42.6.
Critical Path Method
528
42.7.
Excusable Delays---Construction Contracts
529
(a).
Guiding Principles
529
(b).
Weather Delays
530
(c).
Strikes
532
(d).
Labor Shortages
532
(e).
Subcontractor Delays
533
(f).
Acts of Another Contractor
533
ch. 43
Changes and Equitable Adjustments
534
A.
Changes
535
43.1.
Fixed Price Contracts
535
43.2.
Cost Reimbursement Contracts
536
43.3.
Commercial Item Contracts
537
43.4.
Changes Outside Contract's "Scope"
537
43.5.
Contractor's Duty to Proceed
538
(a).
General Coverage
538
(b).
Effect of Failure to Proceed
539
43.6.
Formal Change Orders
540
43.7.
Constructive Changes
542
(a).
Contract Interpretation
542
(b).
Interference and Failure to Cooperate
543
(c).
Defective Specifications
544
(d).
Nondisclosure of Vital Information
544
(e).
Acceleration
545
B.
Equitable Adjustments
547
43.8.
Equitable Adjustments---Basic Rules of Computation
547
(a).
Guiding Principles
547
(b).
Added Work
548
(c).
Deleted Work
549
43.9.
Overhead and Profit
550
(a).
Overhead
550
(b).
Profit
551
43.10.
Proving the Equitable Adjustment Amount
551
(a).
Actual Cost Data
552
(b).
"Total Cost" Method
553
(c).
"Jury Verdict" Method
554
43.11.
Claim Preparation Costs
555
43.12.
Interest
556
(a).
Claims
556
(b).
Borrowings
557
43.13.
Notice of Right to Adjustment
557
ch. 44
Subcontracting
559
44.1.
"Subcontracts" Defined
559
44.2.
The Privity Rule
560
44.3.
Indirect Subcontractor Appeals
562
44.4.
Prime Contractor/Subcontractor Litigation
565
44.5.
Government Control Over Subcontractors
565
(a).
Contractor Purchasing System Review
566
(b).
Consent to Subcontracts
567
(c).
Flow-Down Contract Clauses
569
(d).
Policies Favoring Special Groups
570
(e).
Payment
571
44.6.
Subcontract Terms and Conditions
571
(a).
Standard Government Contract Clauses
572
(b).
Flow-Down Contract Clauses
574
(c).
Typical Flow-Down Contract Clauses
574
ch. 46
Inspection and Warranty
583
46.1.
Government Inspection Rights
583
46.2.
Standard Inspection Clauses
585
(a).
Contractor Inspection
586
(b).
Time of Inspection
587
(c).
Place of Inspection
588
(d).
Costs of Inspection
588
(e).
Manner of Inspection
589
46.3.
Rejection and Correction
590
(a).
Nonconforming Supplies or Services
590
(b).
Rejection Notice Timing
591
(c).
Rejection Notice Form
591
(d).
Contractor Correction
592
46.4.
Acceptance
593
(a).
Effect of Acceptance
593
(b).
Method of Acceptance
594
46.5.
Government's Post-Acceptance Rights
595
(a).
Latent Defects
595
(b).
Fraud and Gross Mistakes
597
(c).
Other Contract Terms
598
46.6.
Warranties
598
(a).
Express Warranties---FAR Clauses
599
(b).
Express Warranties---Government's Remedies
600
(c).
Express Warranties---Burden of Proof
601
(d).
Implied Warranties
602
(e).
Commercial Item Contracts
602
ch. 48
Value Engineering
604
48.1.
In General
604
48.2.
Value Engineering Change Proposals
604
48.3.
Administration
606
ch. 49
Terminations for Default and Convenience
608
A.
Default Terminations
608
49.1.
Standard "Default" Clauses
608
49.2.
Bases for Termination
609
(a).
Failure to Deliver or Perform---General Policy
610
(b).
Failure to Deliver or Perform---Timely Delivery
611
(c).
Failure to Deliver or Perform---Compliance With Specifications
611
(d).
Failure to Make Progress
612
(e).
Failure to Perform Other Contract Terms
614
(f).
Anticipatory Breach of Contract
614
49.3.
The Termination Decision
615
(a).
Contracting Officer Discretion
615
(b).
Improper Motive or Grounds
616
(c).
Notices
617
49.4.
Contractor Defenses
618
(a).
Excusable Delays
619
(b).
Waiver of Due Date
619
(c).
Termination After Waiver
620
49.5.
Government Remedies
621
49.6.
Contesting Default Terminations
623
B.
Convenience Terminations
623
49.7.
Standard "Termination for Convenience" Clauses
623
49.8.
Government's Convenience Termination Right
624
49.9.
Scope of Discretion
625
49.10.
Termination Procedures
626
(a).
Written Notice
626
(b).
Contractor's Obligations
627
49.11.
Commercial Item Contracts
628
49.12.
Contractor Settlements
628
(a).
Settlement Basis
629
(b).
No-Cost Settlement
630
(c).
Settlement Principles and Limitations
630
(d).
Special Termination Costs
630
(e).
Settlement Expenses
630
(f).
Subcontractor Proposals
631
(g).
Profit
632
49.13.
Commercial Item Contracts
633
49.14.
Partial Terminations
633
(a).
Partial Termination vs. Deductive Change
634
(b).
Contractor Recovery
634
Index
637