Headquarters, Department of the Army Department of the Army Pamphlet 27-50-416 January 2008 Contract and Fiscal Law Developments of 2007—The Year in Review Major Marci A. Lawson, USAF (Editor), Lieutenant Colonel Ralph J. Tremaglio, III, Chair, Lieutenant Colonel Michael L. Norris, Vice-Chair, Colonel John Siemietkowski, Major Jose A. Cora, Major Mark A. Ries, Major Michael Wong, Major Jennifer C. Connelly, Major Peter D. DiPaola, Major Brett Egusa Ms. Margaret K. Patterson Contents Foreword Contract Formation (Authority; Competition; Contract Types; Sealed Bidding; Negotiated Acquisitions; Socio-Economic Policies; Required Sources; Bid Protests) Contract Administration (Contract Interpretation; Contract Changes; Contract Disputes Act (CDA) Litigation; Terminations for Default; Terminations for Convenience; Government Property; Non- Appropriated Fund Contracting) Special Topics (Competitive Sourcing; Construction Contracting; Foreign Military Sales; Payment and Collection; Procurement Fraud; Taxation; Contingency Contractor Personnel) Fiscal Law (Time; Antideficiency Act; Obligations) Appendix A: Department of Defense Legislation for Fiscal Year 2008 Appendix B: Government Contract and Fiscal Law Websites & Electronic Newsletters CLE News Current Materials of Interest Editor, Captain Alison M. Tulud Assistant Editor, Captain Ann B. Ching Technical Editor, Charles J. 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The Army CONTRACT AND FISCAL LAW DEVELOPMENTS OF 2007—THE YEAR IN REVIEW Major Marci A. Lawson, USAF (Editor) Lieutenant Colonel Ralph J. Tremaglio, III, Chair Lieutenant Colonel Michael L. Norris, Vice-Chair Colonel John Siemietkowski Major Jose A. Cora Major Mark A. Ries Major Michael Wong Major Jennifer C. Connelly Major Peter D. DiPaola Major Brett Egusa Ms. Margaret K. Patterson TABLE OF CONTENTS Table of Contents.......................................................................................................................................................... 1 Foreword....................................................................................................................................................................... 2 Contract Formation....................................................................................................................................................... 4 Authority.................................................................................................................................................................. 4 Competition ............................................................................................................................................................. 9 Contract Types....................................................................................................................................................... 15 Sealed Bidding....................................................................................................................................................... 17 Negotiated Acquisitions......................................................................................................................................... 19 Socio-Economic Policies ....................................................................................................................................... 24 Required Sources ................................................................................................................................................... 29 Bid Protests............................................................................................................................................................ 30 Contract Administration ............................................................................................................................................. 38 Contract Interpretation ........................................................................................................................................... 38 Contract Changes................................................................................................................................................... 41 Contract Disputes Act (CDA) Litigation ............................................................................................................... 46 Terminations for Default........................................................................................................................................ 55 Terminations for Convenience............................................................................................................................... 60 Government Property............................................................................................................................................. 63 Non-Appropriated Fund Contracting ..................................................................................................................... 68 Special Topics............................................................................................................................................................. 71 Competitive Sourcing ............................................................................................................................................ 71 Construction Contracting ....................................................................................................................................... 78 Foreign Military Sales............................................................................................................................................ 82 Payment and Collection ......................................................................................................................................... 83 Procurement Fraud................................................................................................................................................. 86 Taxation ................................................................................................................................................................. 94 Contingency Contractor Personnel ........................................................................................................................ 96 Fiscal Law................................................................................................................................................................. 101 Time..................................................................................................................................................................... 101 Antideficiency Act..............................................................................................................................................