Essay about Mid Term Exam
You work with a Government agency managing several large defense contracts. On one of these contracts with a contractor named ATI, an issue has arisen concerning the allowability of certain ATI incurred and invoiced costs. ATI's contract is a cost plus award fee contract. The specific costs in question involve some $50,000 in costs running the ATI fitness center at the ATI main business campus. Additionally, ATI paid $500,000 to a political action committee (PAC) which supports legislative initiatives for defense contractors. Finally, ATI incurred and invoiced the Government $1.5 million for its legal fees associated with a proceeding brought against it by the local U.S. Attorney's Office for an alleged violation of …show more content…
If I were advising the Navy I would certainly detour their decision in this award being directly to Innovative Concepts. Under FAR Federal statutes and regulations require that both negotiated contracts and sealed bid contracts be competitively awarded to the maximum extent practical, with the objective of obtaining the contracts most advantageous to the U.S. Government.
FAR 6.302 offers for circumstances that would otherwise not require full and open competition but not enough facts are given about the question to make an accurate determination if any exceptions are applicable.
Of the FAR 6.302 Circumstances permitting other than full and open competition, I find only one that may be applicable if the nature of the given