A promise unkept without excuse is a breach of contract regardless whether the contract is a private contract or government contract. A contract in its legal essence is an enforceable promise. The federal government buys all kinds of goods and services to carry out its governmental duties and obligations. The government enters into essentially three forms of federal contracts: (1) the Firm Fixed Price Contract where the goods or services are purchased for a negotiated price certain, (2) the Cost Reimbursement Contract where the Cost Accounting Standards (CAS) rules applies and (3) the Indefinite Quantity, Delivery and Time and Materials Contract. The federal government engage in either negotiated procedures or sealed bid procedures when entering into contracts. When entering into a government contract, federal contractors must always ensure that government officials have the authority to bind the government.
Further, there are clauses that can be found in practically all government contracts that federal contractors must understand. These provisions are (1) The Change Clause and the other (2) is the Termination For Convenience Clause. You will not find either of these provisions in private contracts. In government contracting you can expect changes and you can expect the government to terminate the contract if they deem it advantageous to the government to cancel the contract. Another cause that is typical in all federal contracts is the Flow-Down Clause, which simply means the terms and conditions in the government’s contract with the Prime-Contractor flows down to all Sub-Contractors. The flow-down clause is not unique to government contracts. Some private contracts also contain these flow-down provisions; nevertheless, all contractors participating in a government project or supplying goods and services on a federal project must be aware of the flow-down provision’s obligations, risk and responsibilities.
The central difference between private contracts and government contracts is the federal acquisition regulation system that governs every aspect of federal government contracting. This system consists of the Federal Acquisition Regulations (FAR) and various supplemental regulations, such as, the Defense Department Federal Acquisition Regulations (DFAR) and other supplemental regulations. Government contracting is heavily regulated by statute and common-law.
Why Federal Government Contracting is So Complex?
It is taxpayers’ money that is being spent. The regulations are there to protect the taxpayer and to ensure that government purchases are free from fraud, abuse and corruption. The government is to purchase goods and services at the best price and best quality. To aid the federal agencies in accomplishing that task, the process is highly regulated. Transparency, that is one of the key goals in government contracting. Transparency by government officials and federal contractors are required. Therefore, those who contract with the government should expect that their books and records to be reviewed, examined and investigated prior to contract award, during contract performance and after contract performance.
Federal Contractors (Prime Contractors and Sub-Contractors) must follow strict regulations from start to finish. The whole process is governed by the Federal Acquisition Regulations or the appropriate supplementals. The Contract Disputes Act of 1978 (CDA), codified at 41 U.S.C. §§ 7101-7109, establishes the exclusive framework for federal contractor claims against the government. Under this statute, each claim by a contractor against the federal government relating to their contract must be submitted to the contracting officer for a decision 41 USCA Section 7103. If the claim is over $100,000, the claim must be certified. This submission requirement is jurisdictional, meaning that obtaining a final decision from the contracting officer is a prerequisite to any subsequent action before a Board of Contract Appeals or federal court. Sub-contractor claims are extremely tricky because sub-contractors do not have a direct contract with the federal government.
The CDA applies broadly to all federal contracts except where specifically excluded, such as certain Tennessee Valley Authority contracts and foreign government contracts where the agency head determines application would not be in the public interest 41 USCA Section 7102. This comprehensive coverage ensures uniform procedures across all federal agencies for handling contractor disputes. Federal government contractors typically need constant and regular legal guidance to avoid running afoul of the rules and regulations that applies to practically all federal contracts regardless of there type.
Why Choose the Government Contracts Attorneys & Counselors at Coleman Jackson, P.C. to Represent You in Federal Government Contracting?
Our government contracts attorneys are skilled in helping federal contractors and sub-contractors in contract disputes with the federal government in the following ways:
- We review the contracts and all the facts and circumstances to help the federal contractor identify specific legal and factual grounds for their contract claims against the government.
- We can assist in gathering evidence in support of the contractors claim; we can assist in drafting, the claim and marshalling the evidence in support of the claim. and we assist in presenting the legal and factual basis of the claim to the Contracting Officer for final decision consistent with the requirements of the Federal Acquisition Regulations and applicable supplemental regulations and other applicable rules and laws.
- We vigorously represent federal contractors before the applicable Agency Administrative Appeals Board or in the U.S. Court of Federal Claims.
- We can serve as your company’s business counselors with respect federal government contracting to help you comply with the FAR, the CAS, the CDA and other government contracting regulations and laws.
Need a No-None-Sense Federal Contracts Attorney and Counselor To Help Pursue Your Government Contract Claim and Keep Your Business in Compliance with the Rules?
Contact the experienced Government Contracts Lawyers and Advocates at Coleman Jackson, Professional Corporation today at (214) 599-0431 for help with breach of contract claims and business law counseling.
