Contract Clauses

  • Complying with Prevailing Wage Laws on Government Contracts

    Doing business with the government can be lucrative, but it requires compliance with a litany of complex laws and regulations impacting your day-to-day business operations. Complying with federal prevailing wage law requirements is one of the biggest headaches for many government contractors. Two primary laws govern how much you are required to pay employees and […]

  • Is Your Counterfeit Electronic Part Detection and Avoidance System Up to Par?

    DFARS 252.246-7007  Contractor Counterfeit Electronic Part Detection and Avoidance System (May 2014) outlines a number of requirements for government contractors in developing and maintaining a system to detect counterfeit electronic parts. The requirement is not applicable unless the Contractor is subject to CAS (Cost Accounting Standards). However, that does not preclude prime contractors from incorporating this […]

  • Mapping Labor Categories

    The administration of T&M, Labor Hour, or FFP-LOE contracts requires mapping labor categories. Review the contract requirements regarding labor categories and document a process for mapping employees. Common Requirements Education, certification, years of experience. Some require specific skill sets or direct experience with a particular agency or program. Some education and certification requirements can be […]

  • FAR and DFARS Citations

    Question What are the proper FAR and DFARS citations and locations of information? Answer Title 48 of the Code of Federal Regulations (CFR) is the Federal Acquisition Regulations System. Chapter 1, Subchapters A to H, Parts 1 to 51 are known as the FAR (Federal Acquisition Regulations) that are not agency specific. Chapters 2 to […]

  • How Do Liquidated Damages Work?

    Liquidated damages are “penalties” that kick in when you are late delivering on a contract. Note that I put quotes around penalties as many contracts will further state that liquidated damages are not penalties. The clause is often written to include such language as “delays in delivery would have an impact on the program that is […]

  • What are liquidated damages?

    Liquidated damages included in a direct government contract reference FAR 11.5, and are intended for use when: The time of delivery or timely performance is so important that the Government may reasonably expect to suffer damage if the delivery or performance is delinquent; and The extent or amount of such damage would be difficult or […]

  • What qualifies as “Developed at Private Expense?”

    Say a contractor develops noncommercial computer software, claims to have done so “exclusively at private expense” by charging those costs into it’s indirect cost pool.  That indirect cost pool is then arguably covered by the government under approved billing rates allocated over various contracts. Given this then contractor then claims Restricted Rights to that software.  […]

  • Contingent Fee vs Kickback

    Question What’s the difference between a contingent fee and a kickback? Answer See FAR 3.4. Sometimes people get concerned about the commissions they pay bona fide employees or agencies – these are usually OK. Almost all companies pay their sales team or external sales reps on a commission basis and this is acceptable. The payment of […]

  • Types of IP Rights in Government Contracts

    Question Can you explain the 3 levels of rights that the government can claim in regards to IP rights: limited, unlimited and government purpose rights. Where is government purpose rights mentioned in the FAR? Answer Note that DFAR 227.7103-1 states, ” DoD policy is to acquire only the technical data, and the rights in that data, […]