Government Contracts Update
News for the Week of November 12, 2018


Regulatory News:
EAR Rule Implements 2017 Wassenaar Plenary Agreements
A Bureau of Industry and Security final rule amends the Export Administration Regulations to revise the Commerce Control List (Supplement No. 1 to EAR Part 774) and corresponding EAR provisions. The rule implements changes to the Wassenaar Arrangement List of Dual-Use Goods and Technologies made by participating governments at the December 2017, WA Plenary meeting.
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GSA Announces FY 2019 FAR Reissue
A General Services Administration notice announces that the Fiscal Year 2019 Federal Acquisition Regulation Reissue will be available at https://www.acquisition.gov/browsefar on November 13, 2018. The FAR Councils periodically reissue the FAR because of administrative necessity. Although the reissue does not alter the language of the FAR, it does contain several administrative updates.
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Legal News:
Federal Circuit Affirms Priority of Rule of Two Analysis for VA
The Court of Appeals for the Federal Circuit affirmed a Court of Federal Claims decision holding the Veterans Benefit Act required the Department of Veterans Affairs to perform a Rule of Two analysis before entering into any new AbilityOne List contracts for eyewear because the VBA took precedence over conflicting provisions in the Javits-Wagner-O'Day Act. Both statutes contain mandatory language but could be reconciled under the basic tenet of statutory construction that a specific statute takes precedence over a more general one. (PDS Consultants, Inc. v. U.S., et al., CA-FC, 62 CCF ¶81,501)
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CFC Applied Wrong Standard in Evaluating Corrective Action
The Court of Appeals for the Federal Circuit reversed a Court of Federal Claims decision enjoining corrective action because the CFC improperly applied a heightened "narrowly targeted" standard to determine whether the corrective action was reasonable. The Federal Circuit has consistently reviewed corrective actions under the Administrative Procedure Act's highly deferential rational basis standard. (Dell Federal Systems, L.P., et al. v. U.S., et al., CA-FC, 62 CCF ¶81,494)
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Conflict of Interest Didn't Limit Convenience Termination Recovery
An apparent conflict of interest did not limit the contractor's recovery of termination for convenience costs, according to the Armed Services Board of Contract Appeals, because there is no requirement that a contractor be without fault to recover its costs and the government could not convert the termination to one for default. Unlike the FAR's termination for default provision, there is no requirement in FAR 49.201 that the contractor be without fault. (Phoenix Data Solutions LLC, ASBCA,¶95,598)
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Protests of IT Awards Sustained on Multiple Grounds
The Comptroller General sustained four protests of contract awards for information technology engineering services because the evaluation and selection decision were unreasonable. One protest was sustained because the RFP stated the government would review the fully burdened fixed-price labor rates for reasonableness and completeness in accordance with FAR 15.404, but the government failed to do so. Another decision found the evaluation under the most important evaluation factor—innovation—was unreasonable. (Technatomy Corp., 33 CGEN ¶116,146; Solers, Inc., 33 CGEN ¶116,147; Novetta, Inc., 33 CGEN ¶116,148; OGSystems, LLC, 33 CGEN ¶116,149)
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Major Contract Awards:
Auxiliary Power Unit Support — $1 Billion
Honeywell International Inc., Phoenix, Arizona, has been awarded an estimated $1,036,726,575 firm-fixed-price requirements contract for support of the following platforms: Ground Start Carts, C-130 Auxiliary Power Units, B-2 APU, F-15 components, A-10 APU, E-3 APU, B-1 APU and F-16 turbine power units. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania.
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Logistics and Repair Support — $717 Million
Sikorsky Aircraft Corp., Stratford, Connecticut, was awarded a $717,410,825 firm-fixed-priced, performance-based logistics requirements contract for logistics and repair support for 98 components in support of CH-53 and MH-53 aircraft weapon replaceable assembly components and their related shop replaceable assembly components. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity.
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Support — $500 Million
Wyle Laboratories Inc., Houston, Texas, has been awarded a $500,000,000 maximum ceiling value, indefinite-delivery/indefinite-quantity contract for contractor-provided personal services and expertise to U.S. Special Operations Command to support the Preservation of the Force and Family Program. USSOCOM, Tampa, Florida, is the contracting activity.
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Laboratory Equipment Support — $473 Million
Five contractors have been awarded a ceiling $473,000,000 indefinite-delivery/indefinite-quantity contract for the Air Force Enterprise Contracted Precision Measurement Equipment Laboratories Services II. This contract provides customer management, supervision, personnel, equipment, tools, materials and other items necessary to perform equipment calibrations by professional and technical metrologists. Headquarters Air Combat Command Acquisition Management and Integration Center, Joint Base Langley-Eustis, Virginia, 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.



Complimentary Whitepaper: Summary of select agency government contracts-related rules issued since January 1, 2018

Complimentary Whitepaper!


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