Chapter 1 .Government Contracting Doctrines 3
A.Introduction: The Challenge of the Different Culture of Government Contracting 3
Total Medical Management, Inc., Plaintiff-Appellee, v.The United States, Defendant-Appellant 6
Notes and Questions 10
B.Characteristic Doctrines 11
1.Limited Authority 11
Office of Personnel Management, Petitioner v.Charles Richmond 13
Notes and Questions 19
Mil-Spec Contractors, Inc., Plaintiff-Appellant, v.The United States, Defendant-Appellee 21
Notes and Questions 25
Harbert/Lummus Agrifuels Projects, et al., Plaintiffs-Cross Appellants, v. The United States, Defendant-Appellant 26
Notes and Questions 30
Donald C.Winter, Secretary of the Navy, Appellant, v.Cath-dr/Balti Joint Venture, Appellee 31
2.Law in Statutes, Regulations, and Standard Clauses 35
Regulations 36
G.L.Christian and Associates v. The United States 39
Appeal of University of California, San Francisco 41
Notes and Questions 41
3.Budgets 42
C.State Procurement 44
Kennedy Temporaries v.Comptroller of the Treasury 45
Notes and Questions 50
Fair Treatment for Contractors Doing Business with the State of Maryland 51
Notes and Questions 55
Chapter 2 .Sealed Bids and Competitive Proposals 57
A.Sealed Bids 58
1.Responsiveness 59
ECDC Environmental, L.C., Plaintiff, v.The United States, Defendant, and Great Lakes Dredge ＆ Dock Co., Intervenor 60
Notes and Questions 64
2.Responsibityty 65
Impresa Construzioni Geom.Domenico Garufi, Plaintiff-Appellant, v. United States, Defendant-Appellee 65
Notes and Questions 71
3.Process 72
Carothers Construction Inc., Plaintiff, v.The United States, Defendant, Barron Construction Company, Intervenor 72
Notes and Questions 76
McClure Electrical Constructors, Inc., Appellant, v. John H.Dalton, Secretary of the Navy, Appellee 76
Notes and Questions 79
B.Competitive Negotiation 80
1.Negotiation Process 81
Information Technology ＆Applications Corporation, Plaintiff-Appellant, v.United States, Defendant-Appellee 82
Notes and Questions 88
W ＆ D Ships Deck Works, Inc., Plaintiff, v.United States, Defendant 89
Notes and Questions 95
Isratex, Inc.v.United States 96
Notes and Questions 102
John H.Dalton, Secretary of the Navy, Appellant, v.Cessna Aircraft Company, Appellee 102
Notes and Questions 110
2.Evaluation 110
Lockheed Missiles ＆ Space Co., Inc., Appellant, v.Lloyd Bentsen, Secretary of the Treasury, Appellee, et al. 110
Notes and Questions 114
Sheila Widnall, Secretary of the Air Force, Appellant, et al.v. B3H Corporation, Intervenor, et al. 114
Notes and Questions 118
Matter of Environmental Tectonics Corporation 119
Notes and Questions 123
Bannum, Inc., Plaintiff-Appellant, v.United States, Defendant-Appellee 124
Notes and Questions 128
C.Modi№ications 128
Cardinal Maintenance Service, Inc., Plaintiff, v.The United States, Defendant, and Navales Enterprises, Inc., Defendant-Intervenor 128
Notes and Questions: 134
Chapter 3 .Commercial, IDIQ, and MAS Contracting 135
A.FedBizOpps 135
TMI Management Systems, Inc. 136
B.Commercial Contracting 139
Matter of Access Logic, Inc. 140
Notes and Questions 143
Matter of GIBBCO LLC 144
B.IDIQ and MAS Contracting 147
1.IDIQ Contracting 147
Decision Matter of DynCorp International LLC 148
2.MAS Contracting 153
Matter of REEP, Inc. 154
Notes and Questions 156
Quantico Arms ＆ Tactical Supply, Inc. 156
IDEA International, Inc., Plaintiff, v. The United States, Defendant, and ICATT Consulting, Inc., Defendant-Intervenor 159
Notes and Questions 164
Chapter 4 .Contract Types, Costs, and Budgets 165
A.Funding 166
Judge Advocate General’s School, Funding and Funding Limitations 166
Notes and Questions 170
Charles Tiefer, Controlling Federal Agencies by Claims on Their Appropriations? The Takings Bill and the Power of the Purse 171
Cherokee Nation of Oklahoma et al., Petitioners, v.Michael O.Leavitt, Respondent 172
Notes & Questions: 177
B.Contract Types 178
Note on Contract Types 178
Coyle’s Pest Control, Inc., Appellant, v.Andrew Cuomo, Secretary of Housing and Urban Development, Appellee 181
Notes and Questions 184
Textron Defense Systems, Appellant, v.Sheila E.Widnall, Secretary of the Air Force, Appellee 185
Notes and Questions 189
C.Cost Accounting and Auditing 189
Note on the Defense Contract Audit Agency 190
United States of America, Plaintiff-Appellant, v.Newport News Shipbuilding and Dry Dock Company, Defendant-Appellee 191
Notes and Questions 197
1.Allowability 197
Bill Strong Enterprises, Inc., Appellant, v.John Shannon, Acting Secretary of the Army, Appellee 198
Notes and Questions 205
2.Allocability and Reasonableness 205
Cost Principles: Reasonableness and Allocability 205
3.Cost Accounting Standards 207
Cost Accounting Standards 207
Notes and Questions 208
Chapter 5 .Contract Administration 209
A.Contracting Of№icer Discretion and Interpretation 210
TEG-Paradigm Environmental, Inc., Plaintiff-Appellant, v.United States, Defendant-Appellee 211
Propellex Corporation, Appellant, v.Les Brownlee, Acting Secretary of the Army, Appellee 218
B.Specifications, Inspection and Acceptance 218
1.Specifications 219
J.L.Malone ＆ Associates, Inc., Appellant, v.The United States, Appellee 219
Notes and Questions 225
United States v. Spearin 225
Notes and Questions 228
Delbert Boyle, Personal Representative et al.Petitioner, v. United Technologies Corporation 229
Notes and Questions 234
Hercules Incorporated, et al., Petitioners, v.United States 234
Notes and Questions 236
2.Inspection 237
Inspection of Supplies Clause — Fixed-Price 238
Appeal of Technical Ordnance, Inc. 240
Notes and Questions 243
Mann Chemical Laboratories, Inc., Plaintiff v.United States of America, Defendant 244
3.Acceptance 245
Notes and Questions 246
Appeal of Fischer Imaging Corporation 247
In the Matter of Instruments for Industry, Inc., Debtor-Appellee, v. United States of America, Appellant 247
Notes and Questions 249
C.Government Assistance, Including Progress Payments and Prompt Payment, and Sureties 249
1.Government-Furnished Property 251
Franklin Pavkov Construction Co., Appellant, v.James G.Roche, Secretary of the Air Force, Appellee 251
Notes and Questions 255
2.Prompt Payment 256
Northrop Worldwide Aircraft Services Inc., Appellant v.Department of the Treasury, Respondent 256
Notes and Questions 261
3.Assignment as Security for Credit 261
Industrial Bank of Washington, Appellant, v.United States of America et al. 261
Notes and Questions 263
Chapter 6 .Changes and Delays 265
A.The Changes Clause, Cardinal Changes, and Formal Changes 266
Changes Clause — Fixed-Price 267
In re Boston Shipyard Corp., Debtor.Appeal of Boston Shipyard Corp. 267
Notes and Questions 270
B.Equitable Adjustments and Constructive Changes 272
1. Constructive Changes 272
General Builders Supply Co., Inc., on Behalf of Itself and for the Benefit of Hupp, Inc.v.The United States 273
Notes and Questions 275
2. Computation and Proof of Equitable Adjustments 276
Propellex Corporation, Appellant, v.Les Brownlee, Acting Secretary of the Army, Appellee 277
C.Delays 281
Blinderman Construction Co., Inc., Appellant, v.The United States, Appellee 281
Notes and Questions 286
Suspension of Work Clause 287
Note on Delays — Compensable and Excusable 287
Notes and Questions 289
Chapter 7 .Internectual Property 291
A.Patents and Copyrights 291
Note on Patents 291
Sevenson Environmental Services, Inc., Plaintiff-Appellant, v.Shaw Environmental, Inc., Defendant-Cross Appellant 293
Copyrights 297
C.Technical Data 298
Note on Rights in Technical Data 298
FN Manufacturing, Inc., Plaintiff, v.The United States, Defendant, and Colt’s Manufacturing Company, Inc., Intervenor 300
Notes and Questions 305
C.Restrictive Markings and Software 306
Note on Restricted Rights and Markings 306
Dowty Decoto, Inc., Plaintiff-Appellee, v. Department of the Navy et al., Defendants-Appellants 307
Notes and Questions 312
Note on Government Licensing of Commercial Software 313
Data Enterprises of the Northwest, Appellant, v.General Services Administration, Respondent 315
Notes and Questions 322
D.Information Technology 322
L.A.Systems, Protester, v. Department of the Army, and Defense Information Systems Agency, Respondents 323
Notes and Questions 330
Information Systems and Networks Corporation, Plaintiff, v. The United States, Defendant 330
Chapter 8 .Small Business and Subcontractors 331
A.Privity and Subcontractors 331
Merritt v. United States 332
Notes and Questions 334
W.G.Yates ＆ Sons Construction Co., Inc., Appellant, v.Louis Caldera, Secretary of the Army, Appellee 334
Questions: 338
NavCom Defense Electronics, Inc., Plaintiff-Appellee, v.Ball Corporation, Defendant-Appellant 338
Notes and Questions 341
Note on Flowdown, and Other, Terms for Subcontractors 342
Empire Healthchoice Assurance, Inc.dba Empire Blue Cross Blue Shield, Petitioner, v.Denise F.McVeigh as Administratrix of the Estate of Joseph E.McVeigh 343
Notes and Questions: 347
Arthur S.Lujan, Labor Commissioner of California, et al., v. G ＆ G Fire Sprinklers, Inc. 347
Notes and Questions 350
B.Small Business Programs and Affirmative Action Issues 351
1.Note on Small Business Programs 351
2.Minority Small Disadvantaged Businesses 352
San Antonio General Maintenance, Inc., et al., Plaintiffs, v. James Abnor, et al., Defendants 353
Notes and Questions 357
3.Affirmative Action Challenges 357
Adarand Constructors, Inc., Petitioner v.Federico Pena, Secretary of Transportation, et al. 358
Notes and Questions 361
4.Veterans Programs 361
Knowledge Connections, Inc., Plaintiff, v. United States, Defendant, and Catapult Technology, Ltd., Intervening Defendant 361
5.HUBZone 366
Matter of Mission Critical Solutions 366
Chapter 9 .Health Care 371
A.Medicare: Physician （Including Prescriptions） 372
United States of America, Appellant/Cross-Appellee v.George O. Krizek, M.D., et al., Appellees/Cross-Appellants 373
Notes and Questions 378
United States, ex rel., Plaintiff, Karyn L.Walker, a.k.a.Karyn L. Denk-Walker, Plaintiff-Appellant Cross-Appellee, v.R＆F Properties of Lake County, Inc., A Florida Professional Association, Defendant-Appellee Cross-Appellant 380
Notes and Questions 384
Note on Medicare Part D 384
Cigna Government Services, LLC, Plaintiff, v.United States of America, Defendant, and Noridian Administrative Services, LLC, Intervenor, andPalmetto GBA, LLC, Intervenor 385
Notes and Questions 391
B.Medicare: Hospital 391
Payment and Delivery Systems 392
Donna E.Shalala, Secretary of Health and Human Services v.Guernsey Memorial Hospital 393
Notes and Questions 396
United States of America, Appellant, v.Consumer Health Services of America, Inc.et al., Appellees 397
Notes and Questions 402
C.Medicaid 402
Orthopaedic Hospital and the California Association of Hospitals and Health Systems, Plaintiffs-Appellants, v.Kimberly Belshe, Director of the State Department of Health Services, State of California, Defendant-Appellee 403
Notes and Questions 410
D.TRICARE, VA Healthcare, and Other 411
Note on Tricare 411
Total Medical Management, Inc., Plaintiff-Appellee, v.The United States, Defendant-Appellant 412
PGBA, LLC, Plaintiff, v.United States, Defendant, Wisconsin Physicians Service Insurance Corporation, Intervening Defendant 412
Notes and Questions 416
Note on VA Healthcare 417
Appeal of Fischer Imaging Corporation 418
Notes and Questions 421
Empire Healthchoice Assurance, Inc.dba Empire Blue Cross Blue Shield, Petitioner, v.Denise F.McVeigh as Administratrix of the Estate of Joseph E.McVeigh 422
Chapter 10 .Construction 423
A.Construction in General 424
Construction Contracts vs.Supply Contracts 424
The United States, Appellant, v.Dekonty Corporation, Appellee 427
Notes and Questions 430
Wickham Contracting Co., Inc., Appellant, v.Dennis J.Fischer, Acting Administrator, General Services Administration, Appellee 430
Notes and Questions 434
B.Progress Payments and Sureties 435
National American Insurance Company, Plain tiff-Appellee, v. United States, Defendant-Appellant 435
Notes and Questions: 439
C.Miller Act 439
Clifford F.MacEvoy Co.et al.v.United States, for Use and Benefit of Calvin Tomkins Co. 441
Allied Building Products Corporation v.United Pacific Insurance Company 444
Notes and Questions 449
D.Differing Site Conditions 450
Differing Site Conditions 451
Appeal of — Covco Hawaii Corporation 451
Notes and Questions 454
Department of General Services v. Harmans Associates Limited Partnership 454
Notes and Questions 460
Chapter 11 .International Procurement and Afghanistan and Iraq Wars 461
A.The Buy American Act 461
Note on The Buy American Act 462
John C.Grimberg Company, Inc., Appellant, v.The United States, Appellee 463
Notes and Questions 468
The GATT Agreement on Government Procurement in Theory and Practice 469
Notes and Questions 471
B.International 471
Stephen P.Crosby, Secretary ofAdministration and Finance of Massachusetts, et al., Petitioners, v.National Foreign Trade Council 471
Notes and Questions 474
Foreign Military Sales 475
United States ofAmerica ex rel.Russell HAYES, Plain tiff/Relator, v. CMC Electronics Inc., Defendant 476
Notes and Questions: 479
Government Procurement in the European Union 479
C.Afghanistan and Iraq Wars 481
Matter of Worldwide Language Resources, Inc.； SOS International Ltd. 482
Notes and Questions 488
Contracting Abuses in Abu Ghraib 488
AR 15-6 Investigation of the Abu Ghraib Detention Facility and 205th Military Intelligence Brigade 489
Notes and Questions 491
Decision Matter of DynCorp International LLC 492
Notes and Questions 492
Chapter 12 .Government and Contractor Labor Force 495
A.Contracting-Out: Public-Private Competition 495
Note on A-76 495
Space Mark, Inc., Plaintiff, v.The United States, Defendant 497
Notes and Questions 501
B.Labor Standards 502
Janik Paving ＆ Construction, Inc., et al., Plaintiffs-Appellants, v.William E.Brock, Ⅲ, as Secretary of the United States Department of Labor, et al., Defendants-Appellees 503
Notes and Questions 508
United States ofAmerica, ex rel.Plumbers and Steamfitters Local Union No.38 et al., v.C.W.Roen Construction co., et al. 508
Notes and Questions 515
C.Labor Policy for Contractors 517
Chamber of Commerce of the United States, et al., Appellants, v. Robert B.Reich, Secretary, United States Department of Labor, Appellee 517
Notes and Questions 524
D.Government Workforce Issues 525
National Treasury Employees Union, et al., Appellees/Cross-Appellants v. Michael Chertoff, Secretary, United States Department of Homeland Security 526
Notes & Questions: 530
Chapter 13 .Termination for Convenience 531
A.Operation 532
Termination for Convenience Clause （Fixed-Price） 534
James M.Ellett Construction Company, Inc., Plaintiff-Appellant, v. The United States, Defendant-Appellee 537
Notes and Questions 543
Jacobs Engineering Group, Inc., Plaintiff-Appellant, v.United States, Defendant-Appellee 544
Notes and Questions 546
Note on Termination for Convenience Settlements 547
B.Defense 548
G.L.Christian and Associates v.The United Statesz 549
Notes and Questions 550
Forfeiture by Cancellation or Termination 550
Krygoski Construction Company, Inc., Plain tiff-Appellee, v. The United States, Defendant-Appellant 551
Notes and Questions 557
Chapter 14 .Termination for Default 559
Note on Termination for Default 559
A.Bases and Defenses 561
Default Clause （Fixed-Price Supply and Service） 562
Information Systems and Networks Corporation, Plaintiff, v. The United States, Defendant 563
Richard J.Danzig, Secretary of the Navy, Appellant, v. AEC Corporation, Appellee 567
Notes and Questions 571
DCX, Inc., Appellant, v.William J.Perry, Secretary of Defense, Appellee 571
Notes and Questions 574
Lisbon Contractors, Inc., Appellee, v. The United States, Appellant 575
Notes and Questions 579
B.Process 580
Note on Process for Termination for Default 580
Darwin Construction Co., Inc., Appellant, v.United States, Appellee 582
Notes and Questions 586
McDonnell Douglas Corporation, Plaintiff-Cross Appellant, et al., v. United States, Defendant-Appellant 587
Notes and Questions 593
C.Excess Reprocurement and Other Remedies 594
Notes and Questions 595
Cascade Pacific International, Appellant, v.The United States, Appellee 595
Notes and Questions 597
Chapter 15 .Bid Protest 599
A.The Contracting Agency 600
B.The Government Accountability Office 601
Note on GAO Protests 601
Note on GAO Bid Protest Procedure 602
Matter of Network Security Technologies, Inc. 606
Notes and Questions 610
Matter of In Re Bay Area Travel, Inc.； Cruise Ventures, Inc.； Tzell-AirTrak Travel Group, Inc. 610
C.The Court of Federal Claims 614
Impresa Construzioni Geom.Domenico Garufi, Plaintiff-Appellant, v. United States, Defendant-Appellee 615
Notes and Questions 615
COFC Bid Protest Practice 615
Chapter 16 .Disputes and Other Remedies 617
A.Disputes 618
Note on Disputes 618
Disputes Clause 620
Reflectone, Inc., Appellant, v.John H.Dalton, Secretary of the Navy, Appellee 621
Notes and Questions 626
Note on CBCA, ASBCA, and COFC Disputes Procedure 627
Bonneville Associates, Plaintiff, v.The United States, Defendant, v. Camco Construction Co., Third Party Defendant 628
Notes and Questions 630
B.Alternative Dispute Resolution 630
C.Liquidated Damages 631
DJ Manufacturing Corporation, Plaintiff-Appellant, v.The United States, Defendant-Appellee 631
Notes and Questions 638
D.Set-Off 638
H.T.Johnson, Acting Secretary of the Navy, Appellant, v. All-State Construction, Inc., Appellee 638
E.Suspension and Debarment 643
United States ofAmerica, Plain tiff-Appellee, v.Fred L.Hatfield, Sr., d/b/a HVAC Construction Company, Incorporated, Defendant-Appellant 644
Notes and Questions 647
Sameena Inc., an Oregon corporation dba Samtech Research； Sameena Ali；Mirza Ali, Plaintiffs-Appellants, v. United States Air Force； v.Carol Moore； Steve Bangs； Alan Schoenberg； Maxwell Air Force Base； Pilson； Mike Thomason, Defendants-Appellees 648
Notes and Questions 652
Chapter 17 .False Claims and Defective Pricing 653
A.False Claims Act/Qui Tam 653
Note on False Claims Act 653
1. Civil False Claims Act 655
United States of America, Plaintiff-Appellee, v. Aerodex, Inc., et al., Defendants-Appellants 656
Notes and Questions 661
United States ofAmerica, ex rel.Mary Hendow； Julie Albertson, Plaintiffs-Appellants, v.University of Phoenix, Defendant-Appellee 663
Notes and Questions 668
2. “Qui Tam” Provisions 668
Vermont Agency of Natural Resources, Petitioner, v.United States ex rel.Stevens 669
Notes and Questions 672
Rockwell International Corp.et al.v.United States et al. 673
Notes and Questions 678
Schindler Elevator Corporation, Petitioner, v.United States ex rel. Daniel Kirk 679
B.TINA and Defective Pricing 684
Truth in Negotiations Act 684
Appeal of University of California, San Francisco 688
Notes and Questions 693
Appeal of Honeywell Federal Systems, Inc. 694
Notes and Questions 699
Congressional Intent and Commercial Products 700
Michael W.Wynne, Secretary of the Air Force, Appellant, v. United Technologies Corporation, Appellee 704
Notes and Questions: 708
Chapter 18 .Ethics 709
A.Bribery, Gratuities, and Kickbacks 710
United States of America, Plaintiff-Appellee, v.Ronnie Brunson Kenney, Defendant-Appellant 711
Notes and Questions 716
United States, Petitioner, v.Acme Process Equipment Company 716
Notes and Questions 720
B.Conflicts of Interest, Restricted Information 721
United States ofAmerica, Plaintiff-Appellee, v. Eugene Donald Schaltenbrand, Defendant-Appellant 722
Notes and Questions 726
Matter of Loral Western Development Labs 726
Notes and Questions 729
Note on Revolving Door Standards 729
C.Organizational Conflicts of Interest 730
Filtration Development Co., LLC, Plaintiff, v. The United States, Defendant 730
Notes and Questions 736
Note on Organizational Conflicts of Interest 737
Chapter 19 .Governmental Breach and Takings 739
A.Governmental Breach 739
Mobil Oil Exploration ＆ Producing Southeast, Inc., Petitioner, v.United States 740
Notes and Questions 743
B.Takings and Remedies 744
Note on Winstar and Takings 744
Huntleigh USA Corporation, Plaintiff, v.The United States, Defendant 745
Notes and Questions 749
C.Sovereign Immunity 749
Department of the Army, Petitioner, v.Blue Fox, Inc. 750
Notes and Questions 753
Note on Sovereign Immunity and Choice of （Federal） Law 753