GOVERNMENT CONTRACTS LAW: AN OVERVIEW

The United States Government is the single largest procurer of goods

and services in the world, and the Department of Defense (DOD)

accounts for the lion’s share of federal acquisitions. Three major

characteristics distinguish Government acquisitions from private sector

contracts. First, Government contracts are subject to myriad statutes,

regulations, and policies which encourage competition to the maximum

extent practicable, ensure proper spending of taxpayer money, and

advance socioeconomic goals. Second, Government contracts contain

mandatory clauses which afford the Government special contractual

rights, including the right to unilaterally change contract terms and

conditions or terminate the contract. The most important clauses are

the “Changes” clause, the “Termination for Convenience” clause, and

the “Default” clause. Third, due to the Government’s special status as a

sovereign entity, claims and litigation follow the unique procedures of

the Contract Disputes Act.

Government contracts are subject to several statutes, including the

Competition in Contracting Act and the Federal Acquisition Streamlining

Act. In addition to statutes, there are a multitude of regulations which

govern acquisitions by executive branch agencies. Foremost among

these is the Federal Acquisition Regulation (FAR), which is codified in

Parts 1 through 53 of Title 48, Chapter 1 of the Code of Federal

Regulations. Executive branch agencies may issue their own regulatory

supplements to the FAR, such as the Defense Federal Acquisition

Regulation Supplement (DFARS). The FAR is amended pursuant to the

Administrative Procedure Act, with proposed changes issued jointly by

the DOD, the General Services Administration (GSA), and the National

Aeronautics and Space Administration (NASA), in coordination with the

FAR Council.

Only Contracting Officers have the authority to contractually bind the

United States Government. This authority is vested in the executive

agency, which then delegates this authority by issuing a certificate of

appointment or “warrant.” The warrant provides signature authority up

to a specified amount of money, or it can be an unlimited warrant.

Contracting Officers have the authority to award, administer, and

terminate Government contracts.

Government contract claims are subject to the Contract Disputes Act,

which requires the claim to be presented first to the Contracting Officer.

After the Contracting Officer’s Final Decision, the claim may be appealed

to either the United States Court of Federal Claims (CFC) or to one of

the Boards of Contract Appeals. After either venue, the claim may be

appealed to the United States Court of Appeals for the Federal Circuit,

and finally to the Supreme Court. The General Accountability Office

(GAO) has the authority to hear bid protests, which are challenges to an

award, proposed award, or terms of a solicitation of a federal contract

GSA - SAM - DOD - FBO - Military Logistics -

NATO and Department of Treasury Approved

“View Government Certs” for approved

National and International Classifications