Air Force Space Contracts “Watch List” May Preclude Contracts and Subcontracts
Client Alert | 1 min read | 11.28.17
Section 1612 of the National Defense Authorization Act for Fiscal Year 2018 contains a development that should be concerning to contractors working on space procurements. The NDAA requires the Commander of the Air Force Space and Missile Systems Center to develop a “watch list” of contractors with a history of poor performance on space contracts, including procurement contracts and research, development, test and evaluation space program contracts. The basis for inclusion is the Commander’s determination that performance on a specific contract is “uncertain” because of: (1) poor performance or award fee scores of under 50%; (2) financial concerns; (3) felony convictions or civil judgments; security or foreign ownership and control issues. Entire companies or divisions may be included on the “watch list” and inclusion will end the availability of new contracts, options, changes, etc. without the Commander’s permission. The “watch list” will also preclude subcontracts of more than $3 million or 5 percent of the contract value without Commander permission.
This appears to be an attempt to extend the Section 841 warzone contracting exclusion authority to space contracts, without the national security exigency and without an understanding of the special requirements and intense engineering and testing required for space contracting. Although there is a “Rule of Construction” in the law saying the watch list is not a suspension or debarment, the de facto debarment possibilities here are staggering. The “watch list” also would create confusion in the marketplace concerning where to discuss performance issues on space contracts (e.g., with the debarment office, or the SMC Commander - assuming such a meeting would even be possible).
Insights
Client Alert | 3 min read | 12.10.24
Fast Lane to the Future: FCC Greenlights Smarter, Safer Cars
The Federal Communications Commission (FCC) has recently issued a second report and order to modernize vehicle communication technology by transitioning to Cellular-Vehicle-to-Everything (C-V2X) systems within the 5.9 GHz spectrum band. This initiative is part of a broader effort to advance Intelligent Transportation Systems (ITS) in the U.S., enhancing road safety and traffic efficiency. While we previously reported on the frustrations with the long time it took to finalize rules concerning C-V2X technology, this almost-final version of the rule has stirred excitement in the industry as companies can start to accelerate development, now that they know the rules they must comply with.
Client Alert | 6 min read | 12.09.24
Eleven States Sue Asset Managers Alleging ESG Conspiracy to Restrict Coal Production
Client Alert | 3 min read | 12.09.24
New York Department of Labor Issues Guidance Regarding Paid Prenatal Leave, Taking Effect January 1
Client Alert | 4 min read | 12.06.24