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 Part 2

Government Contract Law Basics 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 Basics Substantive 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 Basics Budgeting 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 Basics Approved 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 Basics Restrictions on Government funds ◦ Purpose for which they may be used (“color of money”)  O&M ( )  R&D ( )  Military Construction ( ) ◦ Limit on time frame in which those funds may be spent i.e., obligated  One Year (FY 2013)  Two Year (FY ) ◦ Payment may extend over several years for money obligated in current year.

Government Contract Law Basics

Role of the Federal 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 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. Ginman Director, Defense Procurement & Acquisition Policy, Department of Defense Mr. William P. McNally Assistant 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 Specific Federal Contracting Instance FAR DFAR OMB Circulars Office of Federal Procurement Policy Case Law (e.g., “Restatement of the Law”)

Ratification “ ….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 or the GAO.

International Contract Law Foreign Corrupt Practices Act Export Regulations (EAR) International Trafficking in Arms regulations (ITAR) Anti-Boycott Regulations Foreign Laws and Customs