Headquarters, Department of the Army Department of the Army Pamphlet 27-50-392 January 2006 Contract and Fiscal Law Developments of 2005—The Year in Review Major Andrew S. Kantner, Editor, Lieutenant Colonel Ralph J. Tremaglio, III, Chair, Major Steven R. Patoir, Vice-Chair, Major Michael S. Devine, Major Marci A. Lawson, USAF, Major Michael L. Norris, Major Jennifer C. Santiago, Lieutenant Colonel Karl W. Kuhn, Lieutenant Colonel John J. Siemietkowski, Major Katherine E. White, Ms. Margaret K. Patterson Contents Foreword Contract Formation (Authority; Competition; Contract Types; Sealed Bidding; Negotiated Acquisitions; Simplified Acquisitions—Final & Interim Rules; Government Purchase Card; Contractor Qualifications: Responsibility; Commercial Items—Final & Interim Rules; Multiple Award Schedules; Socio-Economic Policies; Randolph-Sheppard Act; Javits-Wagner O’Day Program Developments; Foreign Purchases; Labor Standards; Bid Protests) Contract Administration (Contract Interpretation; Contract Changes; Inspection, Acceptance and Warranty; Value Engineering Change Provision; Terminations for Default; Terminations for Convenience; Contract Disputes Act Litigation; Nonappropriated Fund Contracting) Special Topics (Competitive Sourcing; Privatization; Construction Contracting; Bonds, Sureties, and Insurance; Cost & Cost Accounting Standards; Information Technology; Intellectual Property; Non-FAR Transactions; Payment and Collection; Performance-Based Service Acquisitions; Procurement Fraud; Taxation; Government Furnished Property; Contract Pricing; Auditing; Major Systems Acquisitions; Contractors Accompanying the Force) Fiscal Law (Purpose; Time; Anti-Deficiency Act; Construction Funding; Intragovernmental Acquisitions and Revolving Funds; Obligations; Operational Funding; Foreign Military Sales; Liability of Accountable Officers) Appendix : Websites & Electronic Newsletters Subject Matter Index Announcement CLE News Current Materials of Interest Editor, Captain Anita J. 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Patoir, Vice-Chair Major Michael S. Devine Major Marci A. Lawson, USAF Major Michael L. Norris Major Jennifer C. Santiago Lieutenant Colonel Karl W. Kuhn Lieutenant Colonel John J. Siemietkowski Major Katherine E. White Ms. Margaret K. Patterson CONTENTS CONTRACT AND FISCAL LAW DEVELOPMENTS OF 2005—THE YEAR IN REVIEW ........................................ 1 CONTENTS ............................................................................................................................................................................ 2 Foreword .................................................................................................................................................................................3 CONTRACT FORMATION ....................................................................................................................................................4 Authority .................................................................................................................................................................................4 Competition.............................................................................................................................................................................5 Contract Types ......................................................................................................................................................................16 Sealed Bidding ......................................................................................................................................................................22 Negotiated Acquisitions ........................................................................................................................................................23 Simplified Acquisitions―Final & Interim Rules ..................................................................................................................43 Government Purchase Card...................................................................................................................................................44 Contractor Qualifications: Responsibility ............................................................................................................................47 Commercial Items―Final & Interim Rules ..........................................................................................................................48 Multiple Award Schedules ....................................................................................................................................................50 Socio-Economic Policies.......................................................................................................................................................52 Randolph-Sheppard Act ........................................................................................................................................................57 Javits-Wagner O’Day (JWOD) Program Developments.......................................................................................................58 Foreign Purchases..................................................................................................................................................................59 Labor Standards.....................................................................................................................................................................60 Bid Protests............................................................................................................................................................................66 CONTRACT ADMINISTRATION .......................................................................................................................................74 Contract Interpretation...........................................................................................................................................................74 Contract Changes ..................................................................................................................................................................75 Inspection, Acceptance and Warranty ...................................................................................................................................76 Value Engineering Change Provision....................................................................................................................................79 Terminations for Default .......................................................................................................................................................79