Government Contract Law - Assignment Example

Contract Change Evaluation Introduction The Government Contract Law has been developed in order to redress the grievances that are related with the execution and non-execution of contracts as mentioned in the Contract Law. Contracts are personal agreements signed between two or more parties by their consent. The government contract laws were framed in order to legitimize the government intervention on the private contractual relationship. These laws also safeguard the core values with which the commitment was agreed upon as well as ensures the moral obligation for each party to keep their promises (Leonhard, 2012). With this regard, the assignment elaborates on the Federal Acquisition Regulation (FAR), on the change of orders as well as disputes and appeals. The present change of order has been duly analyzed regarding their compliance with the FAR policies. The judicial processes have been detailed to ensure dispute resolution and provide recommendations on the judicial management of the contract. Discussion In a government contract there is a clause that allows the contracting officer to make independent changes in the selected areas within the scope of the legitimate contract. The clauses of the contract if altered must be following the change that is mechanized. However, there is a provision that the contractor is not obliged to continue the performance if the changes costs beyond limitations laid under the law of Limitation of Cost or Limitation of Funds Clause 32.706-2. This clause always attaches unforeseen circumstances with the contract that usually arises after the execution of the contract. The PrintMark Publication has signed a contract for creating architectural design as well as constructing the same with the US government. However, after the contract was duly legitimized, government implemented their change order and altered the site, where the construction was duly scheduled. This change implemented by the government has actually increased the cost involved with contract of construction (Department Of Defense, 2005). Administrative Process With the implementation of change order, the organizational cost for construction has gone up and the contractor i.e. PrintMark Publication, has to incur severe amount of losses if they continue with the contract. However, the organization can duly negotiate with the government about the equitable adjustment of the contract. This would ensure that the contract can be reconstructed in such a manner that the contractor is entitled to have same benefits that he would have enjoyed if the change was not encountered. The contractors must be informing the government contracting officers about the negotiation so that it can be duly implemented. There are certain government policies that would safeguard the contractor’s benefits even after the change order. Moreover, the organization should be making reasonable efforts to resolve the controversies before submitting any claim (1U.S. Federal Government, 2013). Administrative and Judicial Policies According to the Contract Disputes Act, the government undertakes several policies, which would prevent cancellation of the legitimized contract. PrintMark Publication should be going for reasonable negotiations and must try to resolve the controversies arising out of the change in order. Moreover, the contracting officer should also be open for mutual agreements to resolve the problem arising from the enforcement of changes. The Contract Disputes Act provides several administrative remedies to safeguard the contractor’s interest from the contract. The contracting officer’s duty would be to ensure that the cost analysis was duly performed before the change order was implemented and ensure necessary changes if required. The contracting officer should also ensure that the funds are secured before any adjustments are made within the contract (2U.S. Federal Government, 2013). Compliance with the FAR Policies The FAR policies have a clause that allows the government to implement changes within the scope of contract as and when it necessary. Thus, the change of the site was in compliance with the FAR policies and the government body had the authority to implement such changes even after the contract was legitimized. The contract has duly been awarded, after the completion of all the legal actions required for soliciting. However, the FAR regulation 43.2 permits the government’s right to implement change that they have brought after legitimizing the contract. Fixed price contract under the FAR policies has duly been adhered and the changes made in the contract are in compliance with the laws passed. The contracting officer in charge of the contract has worked according to the FAR policies in bringing unilateral changes in the scope of the legal contract (Porter, 2006; U.S. Federal Government, 2013). Recommendation The issues that are related with the changes in order of the contract can be duly met by negotiation. It is recommended that the government contracting officer must duly compute a detailed analysis of the contract. The proper review of the contractor’s proposal would ensure the officer’s identification of the administrative and financial requirements of the given contract. However, there is a scope for the equitable adjustment of settlements and chances of negotiation between the contractor and the government. Additionally, the government has executed various approaches to implement the Equitable Adjustment Settlement Act, which would ensure both party benefits. With consideration to the referred case, in order to make the contract go forward the contractor must try to negotiate their position with the government officer. If the disputes still persists after negotiation and the PrintMark Publication does not feel comfortable in going ahead with the given contract, they can always claim for sorting out the disputes under Extraordinary Contractual Actions. Conclusion The contract was awarded to PrintMark Publication after performing all the administrative functions required before the allotment of the contract. The government changes their selection of the site in compliance with the FAR policies. The contractor however, can duly appeal for negotiation regarding their increase in cost of construction with the change in site. The Government Contract Law has entrusted the government to make necessary changes within the scope of the contract. The change that was brought into the present contract in regards to the site selection was in accordance to the FAR policies. However, the discrepancies arising from the contractors needed to be sorted out by the negotiation and price adjustment so that the contractors does not come under the Limitation of Cost or Limitation of Funds Clause. Moreover, the contracting officer should be advising the contractor about revising their accounting procedures. In order to make the contract go further the contractor as well as the contracting officer should be open for discussion and negotiation to ensure both party benefits. References Department Of Defense. (2005). Federal acquisition regulation. National Aeronautics and Space Administration, 1(1-51), 1-55. Leonhard, C. (2012). The unbearable lightness of consent in contract law. Case Western Reserve Law Review, 63(1), 1-30. Porter, R. (2006). Contract claims against the federal government: Sovereign immunity and contractual remedies. Briefing Paper, (22), 1-19. 1U.S. Federal Government. (2013). Disputes and appeals. Retrieved from https://www.acquisition.gov/far/html/Subpart%2033_2.html 2U.S. Federal Government. (2013). Change orders. Retrieved from https://www.acquisition.gov/far/current/html/Subpart%2043_2.html Read More