Government Contracts Update
News for the Week of May 14, 2018


Legal News:
Timeliness of Relator's FCA Suit Linked to Government's Knowledge
In a split with other circuits, the Court of Appeals for the Eleventh Circuit held a relator's complaint was not untimely on its face, because a relator may rely on a limitations period triggered by a government official's knowledge in cases where the government declines to intervene. The court determined 31 USC 3731(b)(2) made clear the limitations period depends on the government's, not the relator's, knowledge. (U.S. ex rel. Hunt v. Chochise Consultancy, Inc., et al., CA-11, 62 CCF ¶81,366)
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Government Should Have Resolved Conflicting Information in FPRs
A protester established the existence of a significant, prejudicial procurement error that warranted enjoining a contract award for comprehensive medical services for federal penitentiary inmates, according to the Court of Federal Claims, because the evaluation of technical proposals was arbitrary and capricious. The government's failure to resolve the conflict between the proposals prejudiced the protester because the trade-off analysis could have been significantly affected if the offerors proposed similarly diverse services. (American Correctional Healthcare, Inc. v. U.S., et al., FedCl, 62 CCF ¶81,371)
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Plain Language of Lease Supported Contractor's Interpretation
The government breached a lease by failing to pay adjusted rent, according to the Civilian Board of Contract Appeals, because the plain language of the lease supported the contractor's interpretation of the government's payment obligation. The contractor was entitled to the annual rent, plus the operating cost adjustments calculated from the lease's inception. (Belle Isle Investment Co. v. GSA, CBCA, ¶95,456)
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Debriefing Exception Didn't Apply to FSS BPA Awards
A protest of the establishment of blanket purchase agreements was untimely because it was not filed within ten days of the date the protester knew of the basis of the protest and the debriefing exception did not apply. The procurement was not conducted on the basis of "competitive proposals," and the debriefing exception allowing protests to be filed within ten days of a debriefing did not apply. (ITility, L.L.C., 33 CGEN ¶115,929)
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Regulatory News:
DoD Raises Threshold for Obtaining Certified Cost or Pricing Data
The Department of Defense has issued Class Deviation 2018-O0012, which raises the threshold for obtaining certified cost or pricing data to $2 million. The class deviation includes five deviated clauses/provisions and directs contracting officers to use them in lieu of FAR 52.230-1 through FAR 52.230-5.
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DoD Increases Micro-Purchase and Simplified Acquisition Thresholds
Department of Defense Class Deviation 2018-O0013 raises micro-purchase and simplified acquisition thresholds and revises the special emergency procurement authority. The deviation raises the DoD micro-purchase threshold to $5,000, except the threshold is $10,000 for certain DoD research program and laboratory activities and for acquisitions from qualifying higher education institutions and research groups. For simplified acquisitions, the new threshold is $250,000.
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Major Contract Awards:
Aircraft Logistics Services — $1.4 Billion
Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, has been awarded a $1,421,735,530 cost-plus-incentive-fee contract for recurring logistics services for delivered F-35 Lightning II Joint Strike Fighter air systems in support of the Air Force, Marine Corps, Navy, non-Department of Defense participants, and foreign military sales customers. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
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Multiple Launch Rocket Systems — $829 Million
Lockheed Martin Corp., Grand Prairie, Texas, was awarded an $828,724,214 hybrid (cost-plus-fixed-fee, firm-fixed-price and fixed-price-incentive) foreign military sales (Finland, Republic of Korea, and Romania) contract for Guided Multiple Launch Rocket Systems. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
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Energy Management Services — $770 Million
Virginia Electric and Power Co., Richmond, Virginia, is being awarded an estimated $770,000,000 firm-fixed-price task order under a General Services Administration area wide public utility contract for electric and regulated energy management services. The Naval Facilities Engineering Command, Mid-Atlantic, Norfolk, Virginia, is the contracting activity.
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Software — $653 Million
Insight Public Sector Inc., Chantilly, Virginia, is being awarded an estimated $653,210,000 firm-fixed-price blanket purchase agreement in accordance with the company's General Services Administration Federal Supply Schedule contract. This agreement will provide Microsoft brand-name software licenses, software assurance, and cloud offerings. Space and Naval Warfare Systems Center Pacific, San Diego, California, is the contracting activity.
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Medical Services — $580 Million
Ten contractors have been awarded a firm-fixed-priced, indefinite-delivery/indefinite-quantity, multiple-award task order contract for various medical services. The contracts have a five-year ordering period and the maximum aggregate dollar value is $579,692,297. The Naval Medical Logistics Command, Fort Detrick, Maryland, is the contracting activity.
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Fuel — $528 Million
BP Products North America, Chicago, Illinois ($430,053,860), and Vitol Inc., Houston, Texas ($97,758,652), have each been awarded a fixed-price with economic-price-adjustment contract under solicitation for fuel. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia.
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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