Editor, Captain Scott B. Murray Editorial Assistant, Mr. Charles J. Strong The Army Lawyer is published monthly by The Judge Advocate General's School for the official use of Army lawyers in the performance of their legal responsibilities. The opinions e xpressed by the authors in the articles, however, do not necessarily reflect the view of The Judge Advocate General or the Department of the Army. Masculine or feminine pronouns appearing in this pamphlet refer to both genders unless the context indicates another use. The Army Lawyer welcomes articles on topics of interest to military lawyers. Articles should be submitted on 3 1/2” diskettes to Editor, The Army Lawyer, The Judge Advocate General's School, U.S. Army, ATTN: JAGS-ADL-P, Charlottesville, Virginia 22903-1781. Article text and footnotes should be double-spaced in Times New Roman, 10 point font, and Microsoft Word format. Articles should follow A Uniform System of Citation (16th ed. 1996) and Military Citation (TJAGSA, July 1997). Manuscripts will be returned upon specific request. No compensation can be paid for articles. The Army Lawyer articles are indexed in the Index to Legal Periodicals, the Current Law Index, the Legal Resources Index, and the Index to U.S. Government Periodicals. Address changes for official channels distribution: Provide changes to the Editor, The Army Lawyer, TJAGSA, 600 Massie Road, Charlottesville, Virginia 22903-1781, telephone 1 -800-552-3978, ext. 396 or e-mail: [email protected]. Issues may be cited as Army Law., [date], at [page number]. Periodicals postage paid at Charlottesville, Virginia and additional mailing offices. POSTMASTER: Send any address changes to The Judge Advocate General’s School, U.S. Army, 600 Massie Road, ATTN: JAGS-ADL-P, Charlottesville, Virginia 22903-1781. CONTRACT LAW DEVELOPMENTS OF 1997—THE YEAR IN REVIEW Major David A. Wallace Lieutenant Colonel Karl M. Ellcessor III Major David B. Freeman Major Kathryn R. Sommerkamp Major M. Warner Meadows Major Stewart A. Moneymaker Major Thomas L. Hong Colonel Richard L. Huff Colonel Jonathan H. Kosarin Lieutenant Colonel Mark E. Henderson Lieutenant Colonel Steven N. Tomanelli Major J.P. Moran Major Stephen L. Schooner CONTENTS I. FOREWORD............................................................................................................................................................................... 10 II. CONTRACT FORMATION .................................................................................................................................................... 10 A. Authority ............................................................................................................................................................................... 10 1. No Contract, No Quantum Meruit Remedy for AT&T..................................................................................................... 10 2. Telecommunications Company Disconnected .................................................................................................................. 10 3. Partnership Agreements Are Contracts if They Meet All Applicable Regulatory Mandates........................................... 11 4. Jilted by the Prime? Subcontractor Often Left Standing at the Altar ............................................................................... 12 5. Trusting Cynthia’s Interpretation of Contractor’s Tax Liability ....................................................................................... 13 B. Competition........................................................................................................................................................................... 13 1. Central Contractor Registration (CCR)............................................................................................................................. 13 2. Restrictive Specifications.................................................................................................................................................. 14 C. Contract Types....................................................................................................................................................................... 15 1. Regulatory and Statutory Changes.................................................................................................................................... 15 2. Exercising Options............................................................................................................................................................ 16 3. Indefinite Delivery Contracts............................................................................................................................................ 17 4. Cost Reimbursement Contracts......................................................................................................................................... 20 D. Sealed Bidding ...................................................................................................................................................................... 20 1. Responsiveness ................................................................................................................................................................. 20 2. Mistake in Bid................................................................................................................................................................... 21 JANUARY 1998 THE ARMY LAWYER • DA-PAM 27-50-302 3 3. Responsibility.................................................................................................................................................................... 23 4. Late Bids ........................................................................................................................................................................... 23 5. Cancellation of the IFB ..................................................................................................................................................... 24 E. Negotiated Acquisitions ........................................................................................................................................................ 25 1. The FAR Council Finally Finalizes Part 15 ...................................................................................................................... 25 2. Proposal Evaluations—Past Performance......................................................................................................................... 27 3. Competitive Range Determinations .................................................................................................................................. 28 4. Conducting Discussions.................................................................................................................................................... 29 5. A Real Rarity—Mutual Mistake Regarding Taxes Found in a Negotiated Procurement................................................. 29 F. Simplified Acquisitions ......................................................................................................................................................... 30 1. No Harm, No Foul! ........................................................................................................................................................... 30 2. When Late Is Not Late? The Story of Safety Storage, Inc................................................................................................ 30 3. Navy Does It by the Book................................................................................................................................................. 31 G. Bid Protests ........................................................................................................................................................................... 31 1. GAO Bid Protests.............................................................................................................................................................. 31 2. Bid Protests in the Federal Courts..................................................................................................................................... 37 H. Alternative Dispute Resolution (ADR)................................................................................................................................. 40 1. Boards Work Together to Promote ADR .......................................................................................................................... 40 2. Navy Issues New Policy Guidance on ADR..................................................................................................................... 40 3. Army Policy and Procedure Guide for ADR .................................................................................................................... 41 I. Small Business........................................................................................................................................................................ 41 1. Adarand Introduction: Each Branch Struggles With the Implementation of the Landmark Case................................... 41 2. Judicial Decisions Interpreting Adarand........................................................................................................................... 41 3. Rules, Rules, and More Rules..........................................................................................................................................