DFARS Clause Problem Costs Contractor $288K

A contractor’s failure to follow the requirements of DFARS 252.232-7007 (Limitation of Government’s Obligation), also known as the “LOGO” clause, resulted in the contractor performing more than $288,000 in free work for the government.

The contractor’s dilemma is an important reminder to be aware of–and scrupulously comply with–the LOGO clause and similar FAR clauses.

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Government Rejects Contractor’s Bills for Flowers, Hunting Club, Jazz

Roses are red, violets are blue–and a government contractor can’t bill Uncle Sam for either one, according to a recent decision of the Armed Services Board of Contract Appeals.

In Thomas Associates, Inc., ASBCA No. 57795 (2012), the ASBCA rejected a contractor’s claim that it was entitled to stick the government with a variety of costs I will charitably describe as “questionable,” including a hunting club membership, jazz ensemble, a lavish Christmas party, and yes, flowers given to employees, ostensibly to boost morale.

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