Coast Guard’s Fat Requirements for Dry Suits All Wet Says GAO

The Coast Guard issued a delivery order under a GSA Schedule contract to U.S.I.A. Underwater Industrial Apparel (“USIA”) for 777 underwater dry suits. USIA delivered the first 100 suits with an invoice for $59,000. The Coast Guard tested these suits and found they did not meet the specifications for an adjustable Velcro neck. After discussing the problem, the parties signed a bilateral modification “to change the delivery date, change the specification, and add a first article requirement.” The Coast Guard did not return the 100 suits to USIA. USIA then delivered 120 more suits with the new adjustable neckline. The Coast Guard again tested the suits and determined that 32.5% of the suits leaked. The Coast Guard then issued a cure notice for the delivery … Continue reading

Preparing for Sequestration – Driven Contract Terminations and Restructures

Guest Author: Elizabeth A. Ferrell, McKenna Long & Aldridge. Originally posted at http://www.mckennalong.com/publications-advisories-3160.html   With the looming threat of sequestration, there is significant uncertainty regarding the budgetary resources that will be available for the reminder of the fiscal year. Unless Congress acts to prevent sequestration, beginning March 1, 2013, approximately $85 billion in budgetary resources across the Federal Government will be cancelled. On January 10, DoD issued initial planning guidance on sequestration. See “The Department of Defense Issues Initial Planning Guidance on Sequestration”. This week, on January 14, 2013, OMB issued a Memorandum for the Heads of Executive Departments and Agencies providing guidance on planning for the impact of a sequestration order. While the OMB guidance is fairly limited, OMB has tasked agencies with indentifying means to reduce … Continue reading

Afterthoughts: Contract Implications of Sequestration

Following each Nash & Schooner Hot Topics Webinar event, we interview Professor Ralph Nash to get his thoughts on the topic following the panel discussion.  On October 25th, Professors Ralph Nash and Steven Schooner discussed the contract implications of potential sequestration.   Do you think sequestration will happen? I don’t think anybody knows whether it will happen or, if does happen, how long it will last.  My belief is whether it happens or not there are going to be significant cuts in procurement spending.  So people ought to be planning for sequestration without regard to whether it does or does not occur.   If you were a contractor looking at your company’s portfolio of government contracts, would there be particular contracts that you would be … Continue reading