Government Contracts Update
News for the Week of April 15, 2019


Regulatory News:
VAAR Updates Construction-Architect Engineer Regs
A final rule revises the Department of Veterans Affairs Acquisition Regulation at VAAR Part 836, Construction and Architect-Engineer Contracts. The rule also amends corresponding regulations at VAAR Part 801, Department of Veterans Affairs Acquisition Regulations System, VAAR Part 825, Foreign Acquisition, VAAR Part 842, Contract Administration and Audit Services, VAAR Part 846, Quality Assurance, VAAR Part 852, Solicitation Provisions and Contract Clauses, and VAAR Part 853, Forms.
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USAID Proposes Updated IT Security Requirements
A proposed rule would amend the Agency for International Development Acquisition Regulation to incorporate a revised definition of information technology and other requirements relating to information security and information technology approvals. The rule would provide increased oversight of contractor acquisition and use of information technology resources.
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USAID Proposes Revisions to Incentive Awards Programs
The U.S. Agency for International Development proposed to amend its acquisition regulations regarding incentive awards for personal services contracts with individuals. This proposed rule would establish a separate monetary and non-monetary awards program to recognize and reward individual personal services contractors for their contributions to the accomplishment of USAID's mission, goals, and objectives.
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Legal News:
Appellate Panel: "Out of Step" Precedent Required Remand
A panel of the Court of Appeals for the Fifth Circuit affirmed a district court's order remanding a personal injury claim to state court because the plaintiff's failure-to-warn claim implicated no federal interests and the case did not meet the causal nexus requirement. The contractor removed the plaintiff's state action to federal district court under the federal officer removal statute (28 USC 1442(a)(1)), but the court granted the plaintiff's motion to remand, finding there was no causal nexus between the contractor's actions under color of federal office and the plaintiff's claims. (Latiolais v. Huntington Ingalls Inc., CA-5, 63 CCF ¶81,610)
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Technical Evaluation Considered Matters Outside of Proposal
A technical evaluation was unreasonable because the government awarded strengths for features that were not included in the awardee's proposal for maintenance and repair services. The Comptroller General sustained the protest, finding the record did not support the assignment of three of the five strengths cited as discriminators. (Native Energy & Technology, Inc., 34 CGEN ¶116,316)
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Government Waived Material Solicitation Requirement
The Comptroller General sustained a protest of a task order award for network sustainment and deployment support because the past experience evaluation was unreasonable. The protester argued the government should not have considered one of the awardee's past experience examples because the contract did not meet the solicitation's duration requirements. The example, a contract performed by the awardee's proposed subcontractor, was in the third option year, but it did not have a completed CPARS evaluation. (AlliantCorps, LLC, 34 CGEN ¶116,320)
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Major Contract Awards:
Missile Defense — $4.1 Billion
The Boeing Co., Huntsville, Alabama, was awarded $4,141,315,338 (contract modification), partially definitizing the $6,560,000,000 undefinitized contract action issued January 31, 2018, on contract, Ground-based Midcourse Defense Development and Sustainment Contract. The Missile Defense Agency, Huntsville, Alabama, is the contracting activity.
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F/A-18 Aircraft — $4 Billion
The Boeing Co., St. Louis, Missouri, was awarded a ceiling priced $4,040,458,297 modification to convert a previously awarded advanced acquisition contract to a fixed-price-incentive-firm-target multi-year contract. This modification provides for the full-rate production and delivery of 78 F/A-18 aircraft, specifically 61 F/A-18E and 17 F/A-18F aircraft for fiscal years 2018 through 2021. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
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Submarine Material — $2 Billion
General Dynamics Electric Boat, Groton, Connecticut, was awarded a $2,039,763,908 modification to a previously awarded contract for additional material (to include Long Lead Time Material and Economic Ordering Quantity) associated with the Fiscal 2019 – Fiscal 2023 Virginia class submarines (SSNs 802 – 811). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.
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Ship Detail Design and Construction — $1.5 Billion
Huntington Ingalls Industries, Pascagoula, Mississippi, was awarded a $1,471,290,677 fixed-price-incentive modification to a previously awarded contract for the procurement of the detail design and construction of Landing Platform Dock 30. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.
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Multiple Launch Rocket Systems — $1.1 Billion
Lockheed Martin Missiles and Fire Control, Grand Prairie, Texas, was awarded a $1,135,410,156 modification to a Foreign Military Sales (Poland, Bahrain and Romania) contract Guided Multiple Launch Rocket systems full rate production. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
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Fire and Emergency Services Equipment — $985 Million
Six contractors are sharing a maximum $985,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract under solicitation SPE8EH-16-R-0001 for fire and emergency services equipment. The contracting activity is the Defense Logistics Agency Troop Support in Philadelphia, Pennsylvania.
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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.



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