Contract Management Body of Knowledge Pre-Award Competencies Section 1.1 Laws and Regulations Part 2 Pre-Award Competencies Section 1.1 Laws and Regulations.

Contract Management Body of

Knowledge

Contract Management Body of

KnowledgePre-Award Competencies

Section 1.1 Laws and RegulationsPart 2

Pre-Award CompetenciesSection 1.1 Laws and Regulations

Part 2

Government Contract Law Government Contract Law BasicsBasics

Contract Laws are enacted by Congress, implemented by the Executive Branch and interpreted by the Judiciary

As the sovereign, the government enjoys certain protections and privileges◦ Sovereign Immunity◦ Termination for

Convenience◦ Socio-economic programs

“Necessary and Proper” Appropriation of funds

Government Contract Law Government Contract Law BasicsBasicsSubstantive laws affecting procurement

◦Armed Services Procurement Act◦Federal Property and Administrative

Services Act◦Competition in Contracting Act◦Streamlining Acquisition Regulations Act

Authorizations and Appropriations◦Authorization act allows congress to propose

appropriations within a defined ceiling◦Appropriation provides funding to a specific

agency for a defined purpose.

Government Contract Law Government Contract Law BasicsBasicsBudgeting Process

◦ Inputs aggregated by OMB

◦ OMB negotiates with agencies to compile proposed budget

◦ Congress (House) then establishes Authorized and Appropriated budgets

◦ Senate provides additional input

◦ Final budget is passed by Congress and sent to president for signature

Government Contract Law Government Contract Law BasicsBasicsApproved budget

sent to OMB who then allocates it to each agency

Continuing Resolution◦ Essentially extends

earlier period’s authorized and appropriated budget into next fiscal period

◦ Severely restricts new acquisitions while continuing to fund existing contracts.

Government Contract Law Government Contract Law BasicsBasics

Restrictions on Government funds◦ Purpose for which they

may be used (“color of money”) O&M (057 3400) R&D (057 3600) Military Construction (057

3300)

◦ Limit on time frame in which those funds may be spent i.e., obligated One Year (FY 2013) Two Year (FY 2013-14)

◦ Payment may extend over several years for money obligated in current year.

Government Contract Law Government Contract Law BasicsBasics

Role of the Federal Role of the Federal Acquisition Regulation (FAR)Acquisition Regulation (FAR)Principle source of

contracting guidance within the Federal Government

Implemented April 1, 1984

“FAR System” comprised of◦ FAR◦ Agency

Supplements (e.g., DFAR)

Role of the FARRole of the FAR FAR is prepared,

issued, and maintained jointly by:◦ Secretary of Defense◦ Administrator of GSA◦ Administrator of NASA

Two councils who must agree to all changes◦ Defense Acquisition

Regulation Council (DoD/NASA)

◦ Civilian Agency Council (GSA)

FAR is published and distributed by FAR Secretariat (GSA)

Richard T. GinmanDirector, Defense Procurement &

Acquisition Policy, Department of

Defense

Mr. William P. McNallyAssistant

Administrator for Procurement

National Aeronautics and Space

Administration

Mr. Joseph Neurauter Assistant

Administrator for Procurement

National Aeronautics and

Space Administration

Applying the Law to a Applying the Law to a Specific Federal Contracting Specific Federal Contracting InstanceInstanceFARDFAROMB CircularsOffice of Federal

Procurement Policy

Case Law (e.g., “Restatement of the Law”)

RatificationRatification “ ….act of approving

an unauthorized commitment by an official who has the authority to do so.”

Government is NOT bound by the unauthorized acts of its agents

The unauthorized act may become binding if ratified.

Unratified acts may be resolved by extraordinary contractual relief per PL 85-804 or the GAO.

International Contract LawInternational Contract LawForeign Corrupt

Practices ActExport

Regulations (EAR)International

Trafficking in Arms regulations (ITAR)

Anti-Boycott Regulations

Foreign Laws and Customs