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Mutual mistake requires government to “reform” contract

Legal Analysis - Regulatory

RULE: When the government and a contractor enter into a contract modification that contains a mutual mistake in understanding, the contract may be “reformed” to reflect the real agreement between the parties.

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Board grapples with basic question: what is a contract?

Legal Analysis - Regulatory

RULE: A delivery order is a contract for purposes of jurisdiction of the Armed Services Board of Contract Appeals but a basic ordering agreement is not

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Joint venture properly found to be non-responsible

Legal Analysis - Regulatory

RULE: An agency may properly find to be non-responsible a joint venture in which only one of the three joint venturers has the required security clearance.

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Patent ambiguities demand further Contractor action

Legal Analysis - Regulatory

RULE: A contractor has the duty to clarify any patent ambiguities in a solicitation.   

Although it may be legally required, it is not a smart sales approach to keep bothering your customer about what precisely it is the customer actually wants to buy. Because relationships between buyer and seller are so important, sellers may be reluctant to press the buyer for specific details for fear of damaging the relationship.  However, as two government contractors recently found out, it’s critical that patent ambiguities—ambiguities that are clear from the start of the solicitation and exist during the solicitation process—must be resolved before the sale is made, regardless of whether the vendor is reluctant to keep bothering the government for more information.

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Staying current with state incorporation laws is critical

Legal Analysis - Regulatory

RULE: A contractor that is no longer a viable corporation under state law is ineligible to receive a government purchase order and cannot appeal a termination.

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