Navy | The Contracting Education Academy

March 2, 2021 By cs

For government-furnished property, the government not granting an equitable adjustment may be a breach of contract

The Federal Circuit’s published decision in BGT Holdings LLC v. United States (Dec. 23, 2020) holds that the government’s refusal to adequately consider a contractor’s request for equitable adjustment (REA) could be considered a breach of contract.

In this case, BGT Holdings LLC (BGT) was appealing a dismissal of its claims by the Court of Federal Claims (COFC) in a dispute with the Navy.

BGT was performing a fixed-price contract to build and deliver a gas turbine generator for the Navy. As part of its performance, BGT was to receive and incorporate certain government-furnished equipment (GFE) into its deliverable. Well into performance, the Navy cancelled two of the GFE items, requiring BGT to purchase them on the open market. BGT filed an REA to recoup the costs to purchase the cancelled GFE, consistent with FAR § 52.245-1(d)(2)(i), Government Property and FAR § 52.243-1, Changes – Fixed-Price. The Navy rejected the REA.

On appeal, the Federal Circuit considered BGT’s five grounds for relief in its complaint:

The Navy’s withdrawal of the GFE was a constructive change, entitling BGT to an equitable adjustment;
The reduction of GFE was an official change to the contract for which BGT was entitled to an equitable adjustment;
The Navy breached its contractual duty to deliver the GFE, and therefore BGT was entitled to damages;
The Navy breached its contractual duty to provide an equitable adjustment after failing to deliver the GFE and obligating BGT to provide it; and
The Navy breached its implied duty of good faith and fair dealing by failing to deliver the GFE.

Keep reading this article at: https://www.mondaq.com/unitedstates/government-contracts-procurement-ppp/1040080/for-government-furnished-property-the-government-not-granting-an-equitable-adjustment-may-be-a-breach-of-contract

January 13, 2021 By cs

Don’t rely on automatic email response, GAO decision warns

Agencies commonly ask offerors to designate a point of contact for communications about the proposal. But what happens if the person the offeror identifies is unavailable when the agency reaches out?

A recent GAO bid protest decision is a cautionary tale and suggests some best practices for offerors.

The GAO’s decision in Ortho-Clinical Diagnostics, Inc., B-418946 (Oct. 23, 2020) involved a Navy RFQ seeking two clinical chemistry/immunoassay laboratory analyzer systems and one laboratory automation system, to provide laboratory testing of patient specimens at the Naval hospital in Jacksonville, Florida.

In December 2019, Ortho-Clinical Diagnostics, Inc. submitted a quotation. In its quotation, Ortho-Clinical identified its Contract Manager as the company’s sole point of contact for any communications regarding the quotation.

The Navy received initial quotations from five companies, including Ortho-Clinical. After reviewing initial quotations, the Navy found that none of them, including Ortho-Clinical’s, were technically acceptable. The Navy elected to open discussions with all five companies to allow them to address the shortcomings in their initial quotations.

Keep reading this article at: https://smallgovcon.com/gaobidprotests/proposal-points-of-contact-dont-rely-on-automatic-email-response-gao-decision-warns/

January 4, 2021 By cs

Judge sides with Navy in latest challenge to $7.7 billion NGEN contract

A federal court has ruled against Perspecta in a lawsuit that sought to overturn the Navy’s latest iteration of its Next Generation Enterprise Network contract, likely clearing the way for work to begin on one of the largest information technology contracts in government history.

The precise reasons behind Judge Loren Smith’s final judgement in the case aren’t yet known, because he filed his opinion under seal — a common practice at the Court of Federal Claims to protect sensitive acquisition information. A public version of the document is expected by early January.

The lawsuit was over the Navy’s award of the larger of two contracts that make up its latest recompetition of NGEN, known as Service Management, Integration and Transport. The Navy awarded SMIT, valued at up to $7.7 billion over eight years, to Leidos in February.

“The Department of the Navy is pleased to be able to move forward with this critical program in support of our Navy and Marine Corps warfighters,” Ruth Youngs-Lew, the Program Executive Officer for Digital and Enterprise Information Systems said in a statement. “This contract will enable the DON to accelerate digital modernization of our enterprise networks, which are the foundation for the Department of Navy business.”

Keep reading this article at: https://federalnewsnetwork.com/navy/2020/12/judge-sides-with-navy-in-latest-challenge-to-7-7-billion-ngen-contract/

December 1, 2020 By cs

Navy seeing ‘explosion’ in use of OTA for IT, cyber development work

The last several years of Defense spending have a seen a more than seven-fold increase in the amount of money being spent through other transaction agreements for technology development. And although the Navy has been a relative latecomer to OTAs compared to its sister services, the approach is taking off in a big way in the areas of information technology and cybersecurity.

In August, the Navy announced it was increasing the ceiling value for its Information Warfare Research Project OTA to $500 million after having exhausted its initial $100 million ceiling in just a little over a year-and-a-half. Meanwhile, last month, officials announced the project’s first three programs to have moved from prototypes to full-blown production systems.

“It’s been a very large success. We’ve been able to promote this, both internally and with our sponsors to identify requirements that fit our rapid prototyping construct, ultimately with the goal of getting things into the warfighters’ hands quicker than in other contract strategy approaches,” Kevin Charlow, the chairman of the IWRP Executive Steering Group and deputy executive director of Naval Information Warfare Center-Atlantic said in a recent interview for Federal News Network’s On DoD. “As we continue to identify new requirements and as the word gets out, and people get more comfortable using this type of vehicle, the available ceiling has been used up. So we’re pleased about that and we’re looking forward to the future.”

Keep reading this article at: https://federalnewsnetwork.com/on-dod/2020/11/navy-seeing-explosion-in-use-of-ota-for-it-cyber-development-work/

November 16, 2020 By cs

Navy awards contract for next generation of submarines expected to cost $110 billion

The Navy recently awarded a $9.4 billion contract to begin construction work on what has for years been its biggest modernization priority: A project to build a new class of at least a dozen nuclear-armed ballistic missile submarines that’s expected to cost $110 billion once all is said and done.

The contract for the new Columbia class went to General Dynamics Electric Boat, one of only two U.S. firms capable of building nuclear-powered vessels. It is the first class of ballistic missile subs the Navy has begun since the 1970s, and will eventually replace the current fleet of Ohio class boats when that fleet reaches its retirement age decades from now.

Senior Navy leaders have long said that the program — which they see as vital, since submarines are the most “survivable” part of the military’s nuclear weapons arsenal — will be placed at the front of the line for funding and construction capacity for years to come. That makes it especially important to hold Columbia’s costs in check so they don’t swallow the rest of DoD’s maritime acquisition budget.

James Geurts, the assistant secretary of the Navy for research, development and acquisition said there’s every reason to think the Navy can do that.

Keep reading this article at: https://federalnewsnetwork.com/navy/2020/11/navy-awards-contract-for-next-generation-of-submarines-expected-to-cost-110b/

The Federal Circuit’s published decision in BGT Holdings LLC v. United States (Dec. 23, 2020) holds that the government’s refusal to adequately consider a contractor’s request for equitable adjustment (REA) could be considered a breach of contract.

Agencies commonly ask offerors to designate a point of contact for communications about the proposal. But what happens if the person the offeror identifies is unavailable when the agency reaches out?

A federal court has ruled against Perspecta in a lawsuit that sought to overturn the Navy’s latest iteration of its Next Generation Enterprise Network contract, likely clearing the way for work to begin on one of the largest information technology contracts in government history.

The Navy recently awarded a $9.4 billion contract to begin construction work on what has for years been its biggest modernization priority: A project to build a new class of at least a dozen nuclear-armed ballistic missile submarines that’s expected to cost $110 billion once all is said and done.

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