Contractors Must Prove Increased Costs Caused by a New Wage Determination

Under some federal government contracts, the contractor is required to pay its workers a wage dictated by a wage determination issued by DOL. But what if, during contract performance, DOL raises the applicable wages? Under the FAR, contractors can recover their increased costs. Naturally, however, contractors have to prove them.

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ASBCA Awards Contractor Compensation for Extra-Contractual Changes

Contract changes, particularly in the construction context, can be flash points for the Government and a contractor. In some cases, the Government will assert that the contract requires the contractor to perform certain work; the contractor, pointing to the same (or another) contractual provision, will argue that the contract does not require it. These diverging positions can often lead to contentious litigation.

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2020 NDAA: Contractors Supplying Technical Data to Receive Protection of Data Rights During Challenges, Again

The draft 2020 National Defense Authorization Act, if enacted, will revoke the government’s ability to exercise rights in technical data during a supplier’s challenge to the contracting officer’s decision as to the validity of the asserted “use or release restrictions” on that data. It would reinstate the previous safeguard afforded to data suppliers, allowing them to protect their valuable–and often irreplaceable–intellectual property rights unless and until the contracting officer’s decision to remove the restrictions is sustained.

Keep in mind, this is just a draft provision, as the Senate version of the 2020 NDAA doesn’t contain the provision discussed in this blog.

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ASBCA Awards Costs Incurred Before Notice to Proceed

Your newly awarded government contract requires you to move significant amounts of equipment prior to receiving a Notice to Proceed (NTP). You spend thousands of dollars moving equipment and people into place so you are ready to perform once the NTP is issued. But what if instead of issuing the NTP the agency cancels your contract? Are you out all of the costs incurred to prepare for the NTP?

Not necessarily. The Armed Services Board of Contract Appeals recently reviewed just this situation and awarded a significant amount to the contractor.

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If You’re Working on a Military Installation, Don’t Lose Your Base Access

In the classic 1993 movie Gettysburg, Colonel Joshua Chamberlain, a great American hero (played by Jeff Daniels), commented on the power wielded by military commanders, particularly generals: “Generals can do anything. Nothing quite so much like God on Earth as a general on a battlefield.”

It turns out that this power extends to actions that might affect your Government contract. For instance, a base commander can revoke a contractor’s access to the base; if that happens, and the contract required the contractor to maintain base access eligibility, the Government can rightly terminate the contract for default.

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Preparing for Contract Performance . . . and Guarding Against Problems

Congratulations! After a hard bidding process, your company has earned an award. But though this award process might’ve been long and tough, potential issues are still ahead.

In our practice, we often hear stories of soured relationships with the government during contract performance. Adverse performance issues can come at a hefty cost—in terms of money, time, and reputation.

Here are some suggestions to help guard against performance disputes with the government.

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