Government Contracts Update
News for the Week of January 7, 2019

Regulatory News:
Limitations on LPTA Source Selection Proposed
A proposed rule would amend the Defense Federal Acquisition Regulation Supplement to establish limitations and prohibitions on the use of the lowest price technically acceptable source selection process. To notify contracting officers of the changes, DoD is proposing to add cross-references to the new limitations and prohibitions outlined at proposed DFARS 215.101-2-70 in DFARS 208.405, DFARS 212.203, DFARS 213.106-1, and DFARS 216.505.
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Deviations Address Small Business Subcontracting, Invoicing
The Department of Defense has issued two class deviations. Class Deviation 2019-O0003 sets forth the procedures contracting officers must follow when issuing solicitations and awarding contracts or task or delivery orders under FAR Part 19 to small business concerns, 8(a) Program participants, Historically Under Utilized Business Zone small businesses, service-disabled veteran-owned small businesses, economically disadvantaged women-owned small businesses, and concerns eligible under the WOSB Program.
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Legal News:
Appeal of NDAA 2018 Bar of Kaspersky Labs Denied
The Court of Appeals for the District of Columbia Circuit affirmed a district court's dismissal of a suit challenging a provision of the National Defense Authorization Act for Fiscal Year 2018 because barring the government from using Kaspersky Lab's products and services was not a punitive bill of attainder. Acting on concerns Russia could exploit the plaintiffs' cybersecurity products that defended government computer systems, Congress included in the NDAA FY 2018 (PL 115-91) §1634, which prohibits the government from using any hardware, software, or services developed or provided by Kaspersky Lab, any related entity, or any entity of which Kaspersky Lab had majority ownership. (Kaspersky Lab, Inc., et al. v. Dept. of Homeland Security, et al., CA-DC, 62 CCF ¶81,532)
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Staffing Approach Evaluation Was Disparate and Unequal
A protest of the award of a blanket purchase agreement for operations support services was sustained because the evaluation under the staffing approach factor was unequal. The protester received an overall staffing approach rating of acceptable, but it was assessed a weakness because the evaluators found the protester did not provide any retention techniques focused on cleared personnel. However, the awardee also proposed to use company-wide benefits as its retention techniques for cleared personnel, but it did not receive a weakness in this area. (ManTech Advanced Systems Int'l, Inc., 33 CGEN ¶116,201)
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Major Contract Awards:
LAIRCM Equipment and Support — $3.6 Billion
Northrop Grumman Systems Corp., Rolling Meadows, Illinois, has been awarded a $3,600,000,000 indefinite-delivery/indefinite-quantity contract for Large Aircraft Infrared Counter Measures equipment and support. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity.
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Missiles — $3.4 Billion
Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $3,378,834,083 fixed-price-incentive foreign military sales (Kuwait and Saudi Arabia) contract to produce Phased Array Tracking Radar to Intercept on Target Advanced Capability-3 missiles with associated ground support equipment and initial spares. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
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Human Resources Support — $2.5 Billion
Seventeen contractors will compete for each order of the $2,457,541,083 hybrid (cost, cost-plus-fixed-fee, firm-fixed-price, firm-fixed-price-level-of-effort, and time-and-materials) contract to provide support for enterprise level human resource services for Department of Defense programs and systems. U.S. Army Contracting Command, New Jersey, is the contracting activity.
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Targeting Pods — $1.3 Billion
Northrop Grumman Systems Corp., Rolling Meadows, Illinois, has been awarded a $1,310,000,000 indefinite-delivery/indefinite-quantity, firm-fixed-price, cost-reimbursable contract for sustainment, modernization, production, and development of the LITENING advanced targeting pod. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia is the contracting activity.
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Helicopter Support — $1.1 Billion
Boeing Sikorsky Aircraft Support LLC, Fort Campbell, Kentucky, was awarded an indefinite-delivery/indefinite-quantity, firm-fixed-price, cost-reimbursable contract with a $1,104,807,664 maximum for life cycle contractor support for the MH-6, MH-47, and MH-60 aircraft. U.S. Special Operations Command, Tampa, Florida, is the contracting activity.
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F-16 Aircraft Upgrades — $997 Million
Lockheed Martin Corp., Fort Worth, Texas, has been awarded a $996,775,000 firm-fixed-price contract for F-16 upgrades. This contract provides for the upgrade of 84 F-16 aircraft to the V-configuration. Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity.
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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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