Government Contracts Law

Federal Acquisition Regulation, bid protests, small business set-asides, and contract disputes.

5 Key Statutes3 Key Cases3 Regulations

Overview

Government contracts law governs the process by which federal, state, and local governments procure goods and services from private contractors. The Federal Acquisition Regulation (FAR) is the primary regulatory framework for federal procurement, establishing uniform policies and procedures used by all executive agencies. The FAR implements numerous statutes including the Competition in Contracting Act, the Truth in Negotiations Act, and the Buy American Act.

The procurement process includes requirements determination, solicitation (through Invitations for Bid or Requests for Proposal), evaluation, award, and contract administration. Bid protests — challenges to the award or proposed award of a government contract — may be filed with the Government Accountability Office (GAO), the U.S. Court of Federal Claims, or the contracting agency. The Contract Disputes Act establishes the procedure for resolving disputes arising during contract performance, with appeals to the Armed Services Board of Contract Appeals (ASBCA), Civilian Board of Contract Appeals (CBCA), or the Court of Federal Claims.

Small business programs are a significant component of federal procurement, with statutory goals requiring a percentage of contracts to be awarded to small businesses, women-owned small businesses, service-disabled veteran-owned small businesses, HUBZone businesses, and businesses in the 8(a) Business Development Program. The False Claims Act provides whistleblower (qui tam) provisions allowing private individuals to sue contractors for fraud against the government.

Key Statutes

StatuteCitationSummary
Competition in Contracting Act41 U.S.C. §§ 3301–3311Requires full and open competition in federal procurement, establishing procedures for competitive solicitations and defining exceptions for sole-source awards.
Contract Disputes Act41 U.S.C. §§ 7101–7109Establishes the framework for resolving disputes between the government and contractors, including claims procedures, interest, and appeal rights to boards of contract appeals or the Court of Federal Claims.
False Claims Act31 U.S.C. §§ 3729–3733Imposes civil liability on persons who submit false claims to the government, with treble damages and qui tam provisions allowing whistleblowers to share in recovery.
Buy American Act41 U.S.C. §§ 8301–8305Requires federal agencies to purchase domestic end products and construction materials, subject to exceptions for cost, availability, and public interest.
Small Business Act15 U.S.C. §§ 631–657sEstablishes small business programs including set-asides, sole-source awards, and the 8(a) Business Development Program to promote small business participation in federal procurement.

Key Cases

Kingdomware Technologies, Inc. v. United States

579 U.S. 162 (2016)

Held that the VA must apply the Rule of Two to determine whether small business set-asides are appropriate before awarding contracts through the Federal Supply Schedules.

Universal Health Services v. United States ex rel. Escobar

579 U.S. 176 (2016)

Endorsed the implied false certification theory under the False Claims Act while requiring that the misrepresentation be material to the government's payment decision.

Sys. Application & Techs., Inc. v. United States

691 F.3d 1374 (Fed. Cir. 2012)

Addressed organizational conflicts of interest in government contracting, establishing standards for disqualification and mitigation.

Key Regulations

Federal Acquisition Regulation (FAR)

GSA/DoD/NASA (48 CFR Chapter 1)

The uniform procurement regulation used by all executive agencies, covering the entire acquisition process from planning through contract closeout.

SBA Small Business Size Standards

Small Business Administration (13 CFR Part 121)

Defines small business size standards by NAICS code, determining eligibility for federal small business set-aside programs.

Cost Accounting Standards (CAS)

CAS Board (48 CFR Chapter 99)

Standards governing cost measurement, assignment, and allocation for negotiated federal contracts, ensuring consistency in cost accounting practices.

Common Issues

  • Bid protest procedures and grounds for challenge at GAO
  • Contract disputes and claims under the Contract Disputes Act
  • False Claims Act liability and qui tam whistleblower actions
  • Small business set-aside and size standard compliance
  • Organizational conflicts of interest identification and mitigation
  • Cost or pricing data requirements (Truth in Negotiations Act)
  • Buy American Act and trade agreement compliance
  • Contractor suspension and debarment proceedings

State Variations

While the FAR governs federal procurement, each state has its own procurement code and regulations. State procurement typically mirrors many federal concepts (competitive bidding, small business preferences) but with significant local variations. State protest procedures, contractor qualification requirements, and preference programs differ widely. Some states have adopted model procurement codes while others have unique frameworks. State prevailing wage laws (like the federal Davis-Bacon Act) vary in coverage and rates. State false claims acts with qui tam provisions exist in about 30 states. Local government procurement adds another layer of variation with municipal bidding requirements and preference programs.

Resources

Government Accountability Office (GAO) Bid Protest Decisions

Published decisions from GAO on bid protests, providing authoritative guidance on federal procurement law and procedures.

Federal Acquisition Institute (FAI)

Federal agency providing training, certification, and career development for the civilian acquisition workforce.

Disclaimer: This information is for educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney for advice specific to your situation.