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News for the Week of February 6, 2012Legal News:Regulatory News:Major Contract Awards:Legal News:Defective Cofferdam Design Excused Project DelaysThe default termination of a marina construction contract was improper, according to the Court of Federal Claims, because the government's defective design specifications and contract modifications excused the contractor's failure to meet the contract completion date. The evidence was overwhelming that the cofferdam design suffered from a critical defect, which significantly impeded the work. The contractor fully complied with the specification for the underwater fill, but the fill was a porous gravel material. (Martin Construction, Inc. v. U.S., FedCl, 56 CCF ¶79,707) Design-Build Contract Supported Government's ActionsClaims alleging the government breached a contract and the implied duty of good faith and fair dealing were denied by the Court of Federal Claims because the government's actions were supported by the contract terms. The dispute arose from a contract to design and construct military housing that required 32 modifications extending the initial completion date by nearly 600 days. In rejecting most of the claims, the court observed the contractor did not appreciate the government “would require strict adherence to contractual requirements, instead of deferring to [the contractor's] private sector expertise.” (Metcalf Construction Co. v. U.S., FedCl, 56 CCF ¶79,703) Protester Failed to Meaningfully Dispute Government's DefenseAn evaluation of proposals was not improper, because the protester's mere disagreement did not render the evaluation unreasonable. The protester, who previously filed a protest under the same request for proposals for enterprise network support at issue in the instant protest, challenged its marginal ratings under two of the RFP's evaluation factors. (Ross Technologies, Inc., 27 CGEN ¶113,605) [Full Story] Read IRN » [Full Story] Read IntelliConnect » Regulatory News:New Pilot Program for Military-Purpose Nondevelopmental ItemsThe Department of Defense has adopted as final, without changes, an interim rule (¶70,016.654) that amended the Defense Federal Acquisition Regulation Supplement to implement Section 866 of the National Defense Authorization Act for Fiscal Year 2011 (PL 111-383), which authorized the Secretary of Defense to establish a pilot program to assess the feasibility and advisability of acquiring military-purpose nondevelopmental items. The pilot program is designed to test whether the streamlined procedures, similar to those available for commercial items, can serve as an effective incentive for nontraditional defense contractors to channel investment and innovation into areas that are useful to DoD and provide items developed exclusively at private expense to meet validated military requirements. The program is implemented at DFARS Subpart 212.71. The effective date of the final rule is January 19, 2012. For the text of the final rule, and DoD's discussion and analysis of the public comments received on the interim rule, see ¶70,016.692. DFARS Rule Would Establish Order of Application for ModificationsThe Department of Defense issued a proposed rule that would amend the Defense Federal Acquisition Regulation Supplement to establish an order for the application of contract modifications. To resolve the potential inconsistency in the application of modifications with the same effective date, the rule would add DFARS 204.7007 to establish the method for determining the order of application. Comments on the rule, identified by DFARS Case 2012-D002, are due March 19, 2012. For the text of the proposed rule, see ¶70,020.313. Rule Would Update DoD's Voucher Processing ProceduresThe Department of Defense has issued a proposed rule that would amend the Defense Federal Acquisition Regulation Supplement to update voucher processing procedures and better accommodate the use of Wide Area WorkFlow to process vouchers. Specifically, the rule would revise the requirements for approving interim vouchers at DFARS 242.803. Comments on the proposed rule, identified by DFARS Case 2011-D054, are due March 19, 2012. For the text of the rule, see ¶70,020.315. Major Contract Awards:E-2D Aircraft — $782 MillionNorthrop Grumman Systems Corp., Bethpage, N.Y., is being awarded a $781,500,000 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0044) for the manufacture and delivery of five low rate initial production Lot 4 E-2D Advanced Hawkeye aircraft. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. C-17 Aircraft — $693 MillionThe Boeing Co., Long Beach, Calif., is being awarded a $693,373,638 firm-fixed-price contract for a modification to delivery order (DO) 0006 against the basic C-17 production indefinite-delivery/indefinite-quantity contract, FA8614-06-D-2006, to procure five additional C-17 Air Force aircraft. ASC/WLMK, Wright-Patterson Air Force Base, Ohio, is the contracting activity. F/A-18E Aircraft — $687 MillionThe Boeing Co., St. Louis, Mo., is being awarded a $687,484,033 ceiling-priced modification to a previously awarded fixed-price-incentive-fee multi-year procurement contract (N00019-09-C-0019) for 14 additional fiscal 2012, Lot 36, F/A-18E aircraft and one additional fiscal 2012, Lot 36, F/A-18F aircraft contained in the F/A-18 multi-year III production contract. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. Material Handling Equipment — $633 MillionHyster Co., Greenville, N.C., was awarded a fixed-price with economic price adjustment contract with a maximum $633,000,000 for procurement of commercial type material handling equipment which includes forklifts, man lifts, platform lifts, scissor lifts, telescopic boom lifts, articulating boom lifts, reach stackers, container handlers, tow tractors and warehouse tractors. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity. Medical Support Services — $494 MillionAlleo Corp., Quantico, Va.; Health Partners Management Group, Inc., Poplar Bluff, Mo.; Mindleaf Technologies, Inc., Bedford, Mass.; CNI Professional Services, L.L.C., Norman, Okla.; GTW Consultants & Associates, L.L.C., San Antonio, Texas; Magnum Opus Technologies, Inc., San Antonio, Texas; and Medical North America, L.L.C., Petal, Miss. are being awarded a $494,000,000 indefinite-delivery/indefinite-quantity, firm-fixed-price and cost contract for Air Force Medical Service medical support services which will provide qualified medical support personnel for routine staffing, temporary increases in workload, new mission support, reorganization support, limited duration need, star-up/shut-down needs and workforce fluctuations. 773 ESS/PKJ Wright-Patterson Air Force Base, Ohio, is the contracting activity. Pharmaceutical — $206 MillionCardinal Health, Inc., Dublin, Ohio, was issued a modification exercising the first option year on contract SPM2DX-10-D-0027/P00036. The award is a requirements type contract with a maximum $206,434,187 for pharmaceutical prime vendor, Generation III primary supplier in support of the combined Europe and Pacific regions. The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.
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