News for the Week of September 11, 2017

Hot Topic: Legal News: Regulatory News: Major Contract Awards:
Hot Topic:

Comments on Impact of FTAs on Procurement Markets Requested
The Department of Commerce and the Office of the United States Trade Representative are conducting industry outreach to better understand how the government's procurement obligations under free trade agreements and the World Trade Organization Agreement on Government Procurement affect manufacturer and supplier access to the domestic government procurement process.

Also, because reciprocal access to trading partner markets is an important motivation for including government procurement obligations in FTAs, the agencies are also seeking information about the costs and benefits of these obligations for manufacturers and suppliers.

The access provided by the FTAs in foreign markets to U.S. manufacturers and suppliers is based on reciprocity, and discussing the impact of these agreements on the access that U.S. goods receive in foreign government procurement markets will help inform whether the access is truly reciprocal.

The request for comments was issued pursuant to Executive Order 13788, Buy American and Hire American, which directs the Department and the OUSTR to assess the impacts of the FTAs on the operation of Buy American laws, including their impacts on the implementation of domestic procurement preferences. Comments are due September 18, 2017.

[Full Story] Read IntelliConnect

Legal News:

Fifteen-Year Debarment Term Was Arbitrary and Capricous
The imposition of an extended debarment period was vacated and remanded by the District Court for the District of Columbia, because it was based on unproven allegations from a qui tam False Claims Act complaint and the debarring official failed to pursue additional proceedings as required by FAR 9.406-3. The debarments arose from criminal charges for inflating trucking costs incurred to transport food products in the Middle East. After the contractor's owner pleaded guilty to fraud charges, the government debarred the contractor, as well as the owner's spouse and brother, based on their affiliation with the contractor. (International Exports, Inc., et al. v. Mattis, et al., DC DofC, 61 CCF ¶81,194)

[Full Story] Read IntelliConnect

SBA Size Determination Did Not Support Finding of Affiliation
The Small Business Administration's Office of Hearing and Appeals' affirmance of an SBA area office size determination was arbitrary and capricious, according to the Court of Federal Claims, because there was insufficient support for the area office's determination a joint venture partner and a third firm were "affiliated" under SBA 121.103(f). The court characterized the SBA's findings as "superficial, confusing, and likely incorrect." (Veterans Technology, LLC, et al. v. U.S., FedCl, 61 CCF ¶81,198)

[Full Story] Read IntelliConnect

Recovery Under Implied-In-Fact Contract Denied
A subcontractor's appeal seeking payment of an early termination fee and additional rent under an alleged implied-in-fact contract was denied by the Armed Services Board of Contract Appeals because the subcontractor failed to establish an individual with authority bound the government, and there was no mutuality of intent to contract. The record showed the subcontractor committed to a ten-year lease of the warehouse in return for an expansion of the warehouse that the Army desired. To mitigate the risk that the Army would not stay in the facility for ten years, the subcontractor attempted to include a provision for an early termination fee in the contract between the prime and the Army. (Engineering Solutions & Products, LLC, ASBCA, ¶95,256)

[Full Story] Read IntelliConnect

Late Acceptance of Travel Rates Constituted Unequal Discussions
The Comptroller General sustained a protest of a contract award for foreign language instruction, testing services, and curriculum development because the discussions were unequal. After receiving final proposal revisions from the competitive range offerors, the government allowed the awardee to submit travel rates that it had omitted from its proposal. By obtaining the missing rates after the common cutoff established for receipt of FPRs from all remaining competitive range offerors, the government engaged in discussions with only the awardee and thereby allowed it to revise its proposal. (Global Language Center, 32 CGEN ¶115,663)

[Full Story] Read IntelliConnect

Regulatory News:

SBA Requests Comments on Reducing Unnecessary Regulations
The Small Business Administration has issued a request for information seeking input on identifying which SBA regulations should be repealed, replaced or modified because they are obsolete, unnecessary, ineffective, or burdensome. SBA seeks assistance in identifying regulations that impose unnecessary burdens or costs that exceed their benefits, eliminate jobs or inhibit job creation, or are ineffective or outdated. SBA requests that comments be submitted by October 16, 2017.

[Full Story] Read IntelliConnect

EAR Rule Implements 2016 Wassenaar Arrangement Changes
The Bureau of Industry and Security has amended the Export Administration Regulations to implement revisions to the Wassenaar Arrangement's List of Dual-Use Goods and Technologies made by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies at the December 2016 WA Plenary Meeting. The final rule harmonizes the Commerce Control List (Supplement No. 1 to EAR Part 774) with the WA List changes by revising 50 Export Control Classification Numbers controlled for national security reasons.

[Full Story] Read IntelliConnect

Major Contract Awards:

High Mobility Multi-Purpose Wheeled Vehicles — $2.2 Billion
AM General LLC, South Bend, Indiana, has been awarded a $2,205,926,405 firm-fixed-price contract for the production of up to 11,560 High Mobility Multi-purpose Wheeled Vehicle expanded capacity vehicles, associated optional equipment and contractor-unique spare parts packages for foreign military sales customers worldwide. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity.

[Full Story] Read IntelliConnect

Long Range Standoff Weapon — $1.8 Billion
Lockheed Martin Corp., Orlando, Florida, and Raytheon Co., Tucson, Arizona, have each been awarded an approximately $900,000,000 cost-plus-fixed-fee contract for the Long Range Standoff weapon's technology maturation and risk reduction acquisition phase. Air Force Nuclear Weapons Center, Air Delivered Capabilities Directorate, Eglin Air Force Base, Florida, is the contracting activity.

[Full Story] Read IntelliConnect

Support Services — $778 Million
Jacobs Technologies, Tullahoma, Tennessee, has been awarded a $771,331,825 cost-plus-fixed-fee task order for enterprise operations and maintenance support services by Special Operations Forces Acquisitions, Technology, and Logistics. The contract will be modified to increase the overall award to $778,644,534, an increase of $7,312,709. U.S. Special Operations Command Contracting office, Tampa, Florida, is the contracting activity.

[Full Story] Read IntelliConnect

Digital Imaging — $768 Million
Fujifilm Medical Systems U.S.A. Inc., Stamford, Connecticut, has been awarded a maximum $768,000,000 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for digital imaging network picture archiving communications system products and maintenance. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

[Full Story] Read IntelliConnect

Helicopter/Fixed-Wing Fleet Support — $728 Million
Leidos Innovation Corp., Gaithersburg, Maryland, was awarded a $727,689,796 firm-fixed-price contract to provide support for the Afghan Air Force and Special Mission Wing helicopter/fixed-wing fleets. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

[Full Story] Read IntelliConnect

Construction Equipment — $664 Million
Caterpillar Inc., Peoria, Illinois, has been awarded a maximum $663,584,042 fixed-price with economic-price-adjustment contract for commercial construction equipment. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

[Full Story] Read IntelliConnect

About Links in this Newsletter

To access full text documents on IntelliConnect™ you must subscribe to Government Contracts Reports.

If you are not a subscriber, call our sales staff at 800-449-9525 or visit www.wolterskluwerlr.com


About this Newsletter

From Wolters Kluwer Legal & Regulatory's Government Contracts editors, here are summaries of the important recent developments in this practice area. Complete coverage of these issues, and more, appears in Government Contracts Reports, the Government Contracts Reporter, and related CCH products.



Complimentary Whitepaper: Latest impact of Trump Administration on Government Contracts

Complimentary Whitepaper!


Federal Acquisition Regulation (FAR) & Department of Defense FAR Supplement (DFARS), July 2017 Combo