Government Contracts Update
News for the Week of March 5, 2018

Legal News:
Award of SDVOSB Contracts Wasn't Material to Payment Decision
False Claims Act claims were dismissed by the District Court for the Western District of New York because the claims did not adequately allege that the defendants' FCA violations were material to the government's payment decisions. The government alleged the defendants, who were not service-disabled veterans, formed a corporation with an SDV as a "figurehead" president and 51-percent owner, and misrepresented the corporation's status to obtain contracts set aside for SDV-owned small businesses. (U.S. v. Strock, et al., DC WD NY, 62 CCF ¶81,321)
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Government's Equitable Estoppel Defense Rejected
The government's equitable estoppel affirmative defense lacked merit, according to the Armed Services Board of Contract Appeals, because the contractor's actions did not mislead the government to believe the contractor would not assert its contract rights in the future. The contractor alleged the government breached that agreement by installing two copies of the software on aircraft carriers where the license agreement allowed only one. (ABB Enterprise Software, Inc., ASBCA, ¶95,388)
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Personnel Evaluation Was Inconsistent with Solicitation Terms
A technical evaluation was unreasonable, according to the Comptroller General, because the awardee's proposal lacked critical information regarding the qualifications of its proposed personnel. Based on the content of the awardee's proposal, the government had no way to assess whether the proposed employees met the minimum requirements. The government's contrasting scrutiny of the protester's proposed equivalent MOS contributed to the assessment of the one weakness in the protester's proposal. (BAE Systems Technology Solutions & Services, Inc., 33 CGEN ¶115,852)
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Corporate Spinoff Didn't Affect Propriety of Evaluation or Award
An offeror continued to be eligible for award, notwithstanding a corporate spinoff, because the government was aware of the impending transaction and reasonably determined the transaction would not have a material impact on contract performance. The protesters' objections were based on the premise that the entity whose proposal was evaluated no longer existed and that the government's conclusions about the proposal and entity were rendered invalid. However, the protesters failed to show the business entity that would ultimately perform the requirement was rendered unavailable by the transaction. (Enterprise Services, LLC, et al., 33 CGEN ¶115,842)
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Regulatory News:
NASA Issues Guidance on Subcontracting Plans
The National Aeronautics and Space Administration has issued Procurement Notice 18-03. The notice revises NFS 1819.704, Subcontracting plan requirements, to clarify NASA policy regarding master subcontracting plans. New NFS 1819.704(b)(1) provides that offerors and contractors may submit or establish a master subcontracting plan on a plant- or division-wide basis.
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DoD Seeks Comments on Administrative Lead Time Definition
In accordance with section 886 of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91), the Department of Defense is requesting public comments on a proposed definition of "Procurement Administrative Lead Time." Section 886 requires DoD to seek comments on the definition and a plan for measuring and publicly reporting PALT data for DoD contracts and task orders above the simplified acquisition threshold.
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Major Contract Awards:
Aviation Parts and Services — $2.5 Billion
United Technologies Aerospace Systems, Windsor Locks, Connecticut, has been awarded a maximum $2,500,000,000 for aviation-related spare parts and related services. The contracting activity is the Defense Logistics Agency Aviation, Richmond, Virginia.
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Landing Platform Dock Construction — $1.4 Billion
Huntington Ingalls Industries, Pascagoula, Miss., is being awarded a $1,430,821,350 fixed-price-incentive modification to a previously awarded contract for the procurement of the detail design and construction of landing platform dock 29. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.
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Communication Infrastructure Services — $902 Million
Knight Point Systems, Reston, Virginia, was awarded a competitive, single award indefinite-delivery/indefinite-quantity contract for Communications Capacity Services II. The CSCII contractor will be responsible for a solution that provides hardware and software equipment for use by the Department of Defense and DOD partners. The face value of this action is $902,000,000. The Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, is the contracting activity.
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Food Distribution — $616 Million
Coastal Pacific Food Distributors, Stockton, California, has been awarded a maximum $615,527,303 fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for full food line distribution. The contracting agency is the Defense Logistics Agency Troop Support, 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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Recent Developments in Government Contracts: Regulations and Legislation

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Federal Acquisition Regulation (FAR) & Department of Defense FAR Supplement (DFARS), January 2018 Combo