Federal contractors and subcontractors will soon be subject to new regulations, which increase those contractors’ obligations to hire both veterans and individuals with disabilities (“IWDs”). On March 24, 2014, two final rules promulgated by the U.S. Department of Labor’s Office of Federal Contract Compliance Program (“OFCCP”) will go into effect. The veterans rule updates the
Protection of Contractor Rights
Termination for Default as a Weapon
There is no doubt that the government has the right, and even the responsibility, to terminate a contract completely or partially for default “if the contractor fails to (a) make delivery of the supplies or perform the services within the time specified in the contract, (b) perform any other provision of the contract, or (c)…
Supreme Court to Consider Contractor's Ability to Secure "Home Court" Advantage
By: Edward T. DeLisle & Robert Ruggieri
Last week the U.S. Supreme Court announced that it will review an important Circuit Court case, which focuses on the enforceability of forum selection clauses. These contract clauses identify where parties must litigate claims in the event of a dispute. Contractors, especially federal contractors who perform work for…
Can a Contractor ever ask the Government for Attorney’s Fees?
By: Edward T. DeLisle
We are frequently asked whether attorneys fees are recoverable as part of the federal claims procedure. The answer is sometimes. A case just decided by the Court of Appeals for the Federal Circuit assists in explaining when such a recovery is possible.
In Tip Top Construction v. Donahue, the…
Court Throws Out Government Claim for Excess Reprocurement Costs
By: Edward T. DeLisle
If a government agency terminates a construction contractor for default, it cannot then sit on its hands. The agency must re-procure and complete that project within some reasonable amount of time. Failure to do so may result in the dismissal of any subsequent claim for excess costs to reprocure and finish…
How Long Does a Contractor Have to File a Claim Against the Government?
By: Edward T. DeLisle & Maria L. Panichelli
Many contractors know that there is a six-year statute of limitations on claims brought under the Contract Disputes Act (“CDA”) and Section 33.206 of the Federal Acquisition Regulations (“FAR”). However, most contractors incorrectly assume that for claims pertaining to delay, or acceleration, the six-year statutory period begins…
Possible Extension of GAO's Protest Authority in the Works
By: Edward T. DeLisle
As part of the National Defense Authorization Act of 2008 (the 2008 Act), Congress provided the General Accounting Office (GAO) with the authority to hear protests involving certain task and delivery order contracts emanating from both defense and civilian agencies. At the time, this authority was limited to a period of…
Recovery of Costs for Acceleration
By: Michael H. Payne and Craig A. Schroeder
Acceleration is defined as a directive to increase efforts in order to complete performance on time, despite excusable delay. If the government does not agree that the contractor is entitled to acceleration costs, a contractor must file a request for an equitable adjustment (“REA”), or a claim…
The Right of Contractors to Challenge Unfair Performance Evaluations is Further Expanded by the U.S Court of Federal Claims
We recently reported (see our earlier blog article) the decision of the United States Court of Federal Claims in BLR Group of America, Inc. v. United States, issued on November 25, 2008, in which the Court opened the door to contractor challenges of unfair or incorrect performance evaluations. Coming literally on the heels of…
Method of Calculating Recovery Of Extended Home Office Overhead
In a decision earlier this month, the Armed Services Board of Contract Appeals reiterated that the recovery of unabsorbed home office overhead, based on the Eichleay formula, is for "a stand-by of an uncertain duration." The Board held that where a contractor is entitled to a compensable contract time extension for additional work, the contractor is…