• Injunction Against Award for Tanker Maintenance Vacated
• Costs Not Recoverable under Terminated Commercial Contract

• VAAR Amended to Provide Opportunities for Veterans
• EAR Amended to Implement Wassenaar Arrangement Changes

• CH-47F Aircraft Contract - $704 Million
• Modification to Missile Contract - $201 Million
• Stryker Vehicle Contract - $134 Million
• Modification to Engine Contract - $161 Million
• Support Contract - $114 Million
• Electronics Engineering Contract - $112 Million

FAC 2005-38 Issued with Seven Rules

The Civilian Agency Acquisition and Defense Acquisition Regulations Councils have published Federal Acquisition Circular 2005-38, which contains seven final rules amending the Federal Acquisition Regulation. In order of appearance, the rules address the following subjects: Item I, Revocation of Executive Order 13201, Notification of Employee Rights Concerning Payment of Union Dues or Fees (FAR Case 2009-017); Item II, Governmentwide Commercial Purchase Card Restrictions for Treasury Offset Program Debts (FAR Case 2006-026); Item III, Internet Protocol Version 6 (FAR Case 2005-041); Item IV, Federal Food Donation Act of 2008 (FAR Case 2008-017); Item V, Postretirement Benefits (FAR Case 2006-021); and Item VI, Travel Costs (FAR Case 2006-024). Item VII contains a final rule that makes technical editorial amendments to FAR 6.302-2, FAR 8.703, FAR 15.305, FAR 52.209-6, and FAR 52.212-5. This FAC also contains a Small Entity Compliance Guide. For the text of FAC 2005-38, see ¶70,002.117. [full story]

Injunction Against Award for Tanker Maintenance Vacated

The Court of Appeals for the Federal Circuit reversed the judgment in a successful protest before the Court of Federal Claims because the government's price-realism analysis was not arbitrary and capricious, and the CFC's contrary determination was not within its scope of review under the Administrative Procedure Act standard. The government’s determination was well within its discretion, and the CFC's duty was to determine whether the price-realism analysis was consistent with the request for proposal's evaluation criteria. (Alabama Aircraft Industries, Inc. v. U.S., et al., CA-FC, 53 CCF ¶79,212) [full story]

Costs Not Recoverable under Terminated Commercial Contract

The Armed Services Board of Contract Appeals denied a claim seeking termination for convenience costs because the loan principal, interest, and insurance costs sought by the contractor were not recoverable under the commercial items contract. Pursuant to the commercial items clause, FAR 52.212-4, a terminated contractor receives a percentage of the price, regardless of costs, plus reasonable charges resulting from the termination. Allowing preparatory and insurance costs would conflict with the clause and the termination provisions of FAR 12.403(a). (Red River Holdings, LLC, ASBCA, ¶92,738) [full story]

VAAR Amended to Provide Opportunities for Veterans

The Department of Veterans Affairs has issued a final rule amending the VA Acquisition Regulation to provide opportunities for veteran-owned small businesses and to increase their federal contracting and subcontracting. The rule finalizes, with changes, a proposed rule (¶73,010.04) issued August 20, 2008, and implements portions of the Veterans Benefits, Health Care and Information Technology Act of 2006 (PL 109-461) and Executive Order 13360, which authorize the VA to establish special methods for contracting with service-disabled VOSBs and VOSBs. For the text of the rule, see ¶73,010.05. [full story]

EAR Amended to Implement Wassenaar Arrangement Changes

The Bureau of Industry and Security has issued final rules amending the Export Administration Regulations to implement changes agreed to at the December 2008 Wassenaar Arrangement Plenary Meeting, and to make editorial revisions agreed to at the December 2007 meeting, but not included in the rules implementing the 2007 or 2008 changes. The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual Use Goods and Technologies advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. [full story]

CH-47F Aircraft Contract - $704 Million

The Boeing Co., Ridley Park, Pa., was awarded a $704,417,000 firm-fixed-price contract for 21 new build aircraft and 14 remanufacture aircraft. This is the third year of a multi-year contract for CH-47F. U.S. Army Contracting Command, Aviation and Missiles, CCAM-CG-A, Redstone Arsenal, Ala., is the contracting activity. [full story]

Modification to Missile Contract - $201 Million

Raytheon Co., Tucson, Ariz., is being awarded a $200,923,690 modification to previously awarded contract for 241 Evolved SeaSparrow Missiles and 47 shipping containers for the NATO SeaSparrow Consortium. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. [full story]

Stryker Vehicle Contract - $134 Million

GM GDLS Defense Group, LLC, JV, Sterling Heights, Mich., was awarded a $134,348,933 cost-plus-fixed-fee contract to support performance specification changes to the Stryker Infantry Carrier Vehicle, which will result in the design, integration, production and procurement of necessary components and enhancements to support vehicles operating in the Operation Enduring Freedom theater. Tank Automotive and Armament Command, AMSCC-TAC-AHLC, Warren, Mich., is the contracting activity. [full story]

Modification to Engine Contract - $161 Million

Rolls-Royce Corp., Indianapolis, Ind., is being awarded a $160,633,709 modification to a previously awarded firm-fixed-price contract to exercise an option to procure 78 AE1107C engines for the Navy MV-22 (62) and the Air Force (16). The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. [full story]

Support Contract - $114 Million

McDonnell Douglas Corp., St. Louis, Mo., was awarded a $114,558,014 contract which will provide support for small diameter bomb Increment 1 production for munitions, carriages and technical supports. 681 ARSS/PK, Eglin Air Force Base, Fla., is the contracting activity. [full story]

Electronics Engineering Contract - $112 Million

ITT Industries Corp., Integrated Electronic Warfare Systems, Clifton, N.J., is being awarded a $111,737,911 not-to-exceed firm-fixed-price contract for non-recurring engineering required to modify, manufacture, test and deliver 17 AN/ALQ-214(V)3 radio frequency defensive electronic countermeasures engineering development model (EDM) units. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. [full story]

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