As part of the FY23 National Defense Authorization Act (“NDAA”), Congress has given the Department of Defense authority to pay defense contractors for increased costs due to inflation.  Section 822 of the NDAA amends Public Law 85-804 (50 U.S.C. 1431) to allow contractors to apply for adjustments, while also giving the DoD wide discretion to grant or deny requests.  President Biden is expected to sign the FY23 NDAA soon, and Section 822 has the potential to be welcome news for contractors who have been battling inflation under multi-year, fixed-price contracts. 

As readers of this blog know from prior posts, DoD has issued position papers over the last year that attempt to address inflation with existing legal tools, but as a practical matter, the Department has provided few options for contractors impacted by rising costs.  The new NDAA provision could finally provide DoD with the legal support it needs to aid contractors struggling with inflation.  However, many questions remain about how this law will work and whether it will actually meet the growing needs of the defense industrial base.  In particular, Congress has not yet appropriated money to fund applications for relief, and DoD must prepare guidance for implementing the statute.  Both of these things will need to happen before contractors can apply for and potentially receive inflation-based price adjustments under this amended Public Law 85-804 authority.

This post discusses the amendment and analyzes the hurdles that remain between defense contractors and inflationary relief.Continue Reading Congress Offers Greater Hope for Defense Contractors Battling Inflation; Actual Relief Is Still Not Clear

This is the nineteenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken…

Continue Reading November 2022 Developments Under President Biden’s Cybersecurity Executive Order

This is the eighteenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken…

Continue Reading October 2022 Developments Under President Biden’s Cybersecurity Executive Order

On December 1, 2022, the Department of Defense, General Services Administration, and NASA published a final rule addressing “Effective Communication Between Government and Industry,” which is aimed at “encourag[ing] communication between Government acquisition personnel and industry.”

The rule adds a paragraph to FAR 1.102-2 that reads as follows:

The Government

… Continue Reading New FAR Provision Aims to Encourage Communication Between Government and Industry

On November 4, 2022, the U.S. Department of Transportation (“DOT”) published two proposed waiver notices with request for comments related to the Bipartisan Infrastructure Law’s Build America, Buy America Act (“BABA”).  Both notices stated that DOT’s existing temporary waiver for construction materials would not be extended past its expiration on November 10, 2022.  One notice proposes a public interest waiver for certain narrow categories of contracts and solicitations to continue transitioning the construction materials standard.  The other notice proposes a public interest waiver for de minimis costs, small grants, and minor components.  Comments are due November 20, 2022 for both notices.Continue Reading Department of Transportation Issues Two Proposed Waiver Notices for Build America, Buy America

  • The number of protest filings dropped by 12% from FY21.  After a 12% drop in FY21, protest filings went down
… Continue Reading GAO’s Annual Bid Protest Report: Number of Protests Continues to Drop While the Effectiveness Rate Remains High

President Biden recently signed bipartisan legislation reinforcing anti-human trafficking prohibitions. The End Human Trafficking in Government Contracts Act of 2022 builds on the existing anti-human trafficking framework at Federal Acquisition Regulation (“FAR”) § 52.222-50 (Combatting Trafficking in Persons) by requiring agencies to refer contractor reports of potential human trafficking activity directly to an agency suspension and debarment official (“SDO”).  Prior to this legislation, contractors have been required to notify their contracting officer and the agency inspector general upon receiving “[a]ny credible information” that a human trafficking violation had occurred.  See FAR § 52.222-50(d)(1).  Now agencies will be required to refer these reports to their SDOs, creating additional risk for contractors that disclose potential violations. Continue Reading New Law Increases Government Scrutiny of Contractor Compliance with Anti-Trafficking Provisions

By: Robert Huffman, Susan Cassidy, Michael Wagner, Ryan Burnette, and Emma Merrill

This is the seventeenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s…

Continue Reading September 2022 Developments Under President Biden’s Cybersecurity Executive Order

This is the sixteenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”).  The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various Government agencies to implement the cyber EO from June 2021 through July 2022.  This blog describes key actions taken to implement the Cyber EO during August 2022.Continue Reading August 2022 Developments Under President Biden’s Cybersecurity Executive Order

As we have previously covered on this blog, challenges to the terms of a solicitation typically must be raised in a bid protest brought prior to proposal submission.  The Government Accountability Office recently sustained such a pre-award protest in Selex ES, Inc., B-420799 (Sept. 6, 2022). Continue Reading GAO Sustains Pre-Award Protest and Finds Solicitation Terms to Be Ambiguous