As a result of novel Coronavirus (SARS-CoV-2) and COVID-19, federal and state governments have a sudden and unanticipated need for more goods and services.  Some of those goods and services are highly specialized and specific to Coronavirus and COVID-19.  But governments also have an increased and urgent need to buy otherwise-routine goods and services that have become newly critical in the wake of COVID-19.

All of this means that there are and will be procurements where speed is the priority, and where there is no time for the normal pace and cadence of the procurement process and contract formation.  It also means that resources necessarily will get taken away from routine procurement tasks and reallocated to urgent matters.

Here are a few things to watch for:


Continue Reading The Likely Effects of COVID-19 on Contract Awards and Contract Formation

On February 25, 2019, the Office of Inspector General (“OIG”) for the Department of Defense (“DoD”) issued an audit report analyzing the prices of spare aviation parts purchased by the Defense Logistics Agency (“DLA”) and the Army from TransDigm Group, Inc. (“TransDigm”).  The audit was conducted in response to letters from certain Members of Congress, who had inquired whether the spare parts were sold at fair and reasonable prices and in compliance with the Truthful Cost or Pricing Data Act (“Act”).[1]  The OIG’s audit confirmed that both TransDigm and the responsible DoD contracting officers fully complied with the Act and related regulations governing the price negotiations, but the OIG nonetheless concluded that the contractor earned excess profit on the majority of parts sold.  In a highly unusual move, the OIG recommended that DoD request a “voluntary refund” from TransDigm of its allegedly “excessive” profits, and the OIG also recommended a number of changes to statutory, regulatory, and administrative policies governing the provision of cost or pricing data.
Continue Reading When Compliance Is Not Enough: OIG Seeks Voluntary Refund Despite Contractor’s Adherence to “TINA” Requirements