(Editor’s Note.  Though the GCA REPORT and GCA DIGEST commonly address new or hot developments of interest to the highly experienced professional, we find it a good idea to occasionally review some of the basics.  Since certain procurement laws are frequently referenced in items coming across our desks (contracts, solicitations, correspondences, literature, etc.) the following provides a good overview of the most frequently referenced procurement laws that should be useful to people new to the field and, hopefully, a good refresher to veterans.  We have relied on an article by Brian Speer, Contract Specialist at NASA, in the October 2000 issue of Contract Management and, when appropriate, identified relevant sections of the FAR that incorporate the laws.  Feel free to circulate this article to employees that may benefit.)

The Antideficiency Act, United States Code (USC):31 USC 1341.  States that no officer or employee of the government may create or authorize an obligation in excess of funds available or in advance of appropriations unless otherwise authorized by law (FAR 32.702, Contract Funding).

The Antikickback Act of 1986, 41 USC 51058.  Seeks to deter subcontractors from making payments and to inhibit contractors from accepting payments for the purpose of improperly rewarding or obtaining favorable treatment in connection with a prime contract or subcontact (FAR 3.502-2, Subcontractor Kickbacks).

Buy American Act.  Requires that only domestic end products be acquired for public use except articles, materials and supplies (1) intended for use outside the US (2) for which cost would be unreasonable in accordance with FAR 25.105) (3) an agency head determines domestic preference would be inconsistent with the public interest (4) are not mined or produced in the US in sufficient supply to be reasonably available or (5) that are purchased specifically for commissary resale (FAR 25-102, Buy American Act).

The Clinger-Cohen Amendment, Public Law 104-106.  Was the second wave of acquisition reform (after FASA discussed below) that accomplished the following objectives: (1) adopted commercial buying practices (simplified buys up to $5 million) (2) reduced contractor burdens while balancing government protection (3) sought awards based on best value (4) reformed bid protests (5) provided efficient competition and streamlined competitive range (6) simplified procurement integrity and (7) repealed the Brooks Act.

The Contract Dispute Act of 1978, 41 USC 601-613.  Established procedures and requirements for asserting and resolving claims subject to the act (FAR 33.202, Contract Disputes Act of 1978).

The Contract Work Hours and Safety Standards Act, 40 USC 327-333.  Requires that certain contracts contain a clause specifying that no laborer or mechanic shall be required or permitted to work more than 40 hours in any week without being paid overtime at least one and a half times the basic pay rate (FAR 22.301, Statutory Requirement).

The Davis-Bacon Act, 40 USC 276a-276a-7.  Provides that contracts in excess of $2,000 for construction, alteration or repair of public building shall contain a clause that no laborer or mechanic employed directly on the site of work will receive less than the prevailing wage rates determined by the Department of Labor (FAR 22-403-1, Davis Bacon Act).

The Defense Production Act of 1950, Title 1.  Authorizes the president to require contracts in support of national defense to be accepted and performed on a priority basis (FAR 11.602, Priorities and Allocations, General).

The Federal Acquisition Streamlining Act (FASA) Public Law 103-355.  Repealed 225 existing acquisition laws and regulations primarily related to under $100,000 acquisitions and (1) increased emphasis on market research (2) added reform of specifications and standards for commercial buying (3) expanded debriefings with reduced protest encouragement (4) expanded use of purchase cards (5) reduced demands for cost and pricing data and (5) increased electronic commerce.

The Freedom of Information Act (FOIA), 5 USC 552.  Specifies how agencies will make records available on public request, imposes strict time standards for agency responses and exempts certain records from public disclosure (FAR 24.203, Freedom of Information Act, Policy).

The Miller Act, 40 USC 270a-f.  Requires performance or payment bonds for any construction contract exceeding $100,000 with CO exemptions for work outside the US or is impractical (FAR 28.102, Bonds and Other Financial Protection).

The Privacy Act of 1974, 5 USC 552a.  When an agency contracts for the design, development or operation of a system the agency must keep records in a manner required under the act and employees of the agency may be civilly and criminally liable for violations (FAR 24.102, Protection of Individual Privacy).

Preventing “Wage Busting” for Professionals, OFFP Policy Letter No 78-2.  Consistent with FAR 22.11 provides policies and procedures to use in negotiated service contracts exceeding $500,000 that involve significant numbers of professional employees (FAR 22.1101, Professional Employee Compensation).

The Resource Conservation and Recovery Act of 1976, Executive Order 12873, 42 USC 6901.  Establishes requirements for procuring products containing recovered materials and environmentally preferable and energy efficient products and services.  Environmental objectives will be considered when defining government requirements and making source selection decisions and plans, drawings, specifications and standards will be compliant with FAR Part 23 (FAR 11.002(d), Describing Agency Needs).

The Service Contract Act of 1965 (SCA).  Requires service contracts exceeding $2,500 to contain mandatory minimum wages and fringe benefits provisions equivalent to federal employee classifications and wage rates, notification of minimum allowable compensation to employees and maintaining safe and sanitary working conditions (FAR 22.1002-1, Service Contract Act of 1965).

The Truth in Negotiations Act (TINA), Public Law 87-653.  Requires contractors to certify their submitted cost and pricing data is accurate, complete and current as of the date of agreement on price and gives the government the right to audit proposed costs (FAR 15.4, Contract Pricing).  

Several other laws relate to nondiscrimination (e.g. FAR 22.901, Nondiscrimination Because of Age, FAR 22.002, Equal Employment Opportunity, FAR 22.1401, Employment of workers with Disabilities) and preferences for disabled veterans and Vietnam Era veterans (FAR 22.1301, Disabled Veterans and Veterans of the Vietnam Era).

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