Department of Defense Increases the Justification and Approval Threshold for Its Sole-Source Contract Awards to 8(a) Contractors to $100 Million
On June 5, 2020, the Department of Defense (DoD) amended the DoD Federal Acquisition Regulation Supplement (DFARS) to implement Section 823 of the FY 2020 National Defense Authorization Act. Section 823 increases the threshold for DoD justification and approval (J&A) for certain 8(a) program sole-source awards and provides that the approving authority for any...
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Interim Rule Implements Ban on Contractors Using Covered Telecommunications Products and Services from Certain China-Based Companies
On July 10, 2020, the FAR Council issued a prepublication version of an interim rule implementing Section 889(a)(1)(B) of the FY 2019 National Defense Authorization Act. The interim rule prohibits federal executive agencies from contracting with entities that use covered telecommunications products and services from certain Chinese companies like Huawei Technologies Company or ZTE...
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ASBCA Recognizes New Legal Theory Which Makes It Easier For Contractors To Win CDA Claims Against the Government: Negligent Negotiations By The Government Pre-Award Can Lead To Reformation And Equitable Adjustment After Award
In a groundbreaking decision, Appeal of Chugach Federal Solutions, Inc., ASBCA No. 61320, the ASBCA recognized that “negligent negotiations” on the part of the government during a proposal evaluation were grounds for the contractor to claim an equitable adjustment under the Contract Disputes Act (CDA). The FAR requires the government to conduct meaningful discussions...
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Virginia Government Contractor Facing Federal Indictment for Allegedly Selling Chinese-Made Products to US Government
On July 6, 2020, a federal grand jury returned an indictment charging Arthur Morgan, of Lorton, Virginia, with federal wire fraud charges. Morgan is the Chief Executive Officer (CEO) of Surveillance Equipment Group, Inc. (SEG). SEG, through Morgan, entered into General Services Administration (GSA) contracts with the federal government to provide helmets, body armor,...
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“Ready State” Reimbursement Checklist for Government Contractors
On March 27, 2020, the Department of Defense (“DoD”) issued a class deviation in response to Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which allows agencies to reimburse, at the minimum applicable contract billing rates for government contractors to be at a ‘ready state.’ Recently, DoD issued a...
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Virginia Joins Maryland and Prohibits Covenants Not to Compete for Low-Wage Employees Effective July 1, 2020
Less than a year after Maryland limited competitive restraints employers may place on low-wage employees, Virginia passed a law prohibiting non-compete clauses for low-wage employees. On April 9, 2020, Virginia Governor, Ralph Northam, signed SB 480 into law, which will go into effect on July 1, 2020. The new law states that on and...
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