DTIC ADA469333: Graduate Course Contract Law Deskbook (54th). Volume 2

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by  Defense Technical Information Center

THE FIFTY-FOURTH
GRADUATE COURSE
CONTRACT LAW DESKBOOK
Volume II
Contract and Fiscal Law Department
The Judge Advocate General’s School, United States Army
Charlottesville, Virginia
Fall 2005
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1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED
18 January 2006
4. TITLE AND SUBTITLE 5. FUNDING NUMBERS
54th Graduate Course Contrqact LawDeskbook, Volume II Fall 2005
6. AUTHOR(S)
TJGASA, Contract & Fiscal Law Department
600 Massie Road
Charlottesville, VA 22903
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. P ERFORMING ORGANIZATION
TJAGSA, Contract & Fiscal Law Department REPORT NUMBER
600 Massie Road 54th GC Contract Law Deskbook,
Charlottesville, VA 22903 Volume II, Fall 2005
9. SPONSORING / MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. S PONSORING / MONITORING
Same as 7. AGENCY REPORT NUMBER
Same as 8.
11. SUPPLEMENTARY NOTES
Revised
12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE
A
13. ABSTRACT (Maximum 200 words)
This revised deskbook introduces contract changes, construction contracting, inspection, acceptance & warranty, contract
disputes Act claims, contingency & Deployment contracting, contract terminations for convenience, contract terminations for
default, and procurement fraud
14. SUBJECT TERMS 15. NUMBER OF PAGES
contract changes, construction contracting, inspection, acceptance & warranty, contract 310
disputes Act claims, contingency & Deployment contracting, contract terminations for
16. PRICE CODE
convenience, contract terminations for default, and procurement fraud
17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT
OF REPORT OF THIS PAGE OF ABSTRACT
Unclassified Unclassified Unclassified
NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) USAPPC V1.00
Prescribed by ANSI Std. Z39-18 298-102
54TH GRADUATE COURSE CONTRACT LAW DESKBOOK
(VOLUME II)

SUMMARY OF CONTENTS

SUMMARY OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

BIOGRAPHIES OF PROFESSORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii

CHAPTER TITLE

13 Contract Changes

14 Construction Contracting

15 Inspection, Acceptance & Warranty

16 Contract Disputes Act Claims

17 Contingency & Deployment Contracting

18 Contract Terminations for Convenience

19 Contract Terminations for Default

20 Procurement Fraud
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THE JUDGE ADVOCATE GENERAL'S SCHOOL
CONTRACT AND FISCAL LAW DEPARTMENT

BIOGRAPHIES OF PROFESSORS

LIEUTENANT COLONEL RALPH J. TREMAGLIO, III, JA, Professor and Chair, Contract and Fiscal Law
Department. B.S., Virginia Military Institute, 1985; J.D., Widener University School of Law, 1992; Judge Advocate
Officer Basic Course, 1993; LL.M. Military Law, The Judge Advocate General's School, 1999. Career Highlights:
Deputy Staff Judge Advocate, U.S. Army Infantry Center, Fort Benning, Georgia, 2003-2005; Command and
General Staff College; 2002-2003; Trial Attorney, Contract Appeals Division, 1999-2002; Senior Trial Counsel &
Operational Law Attorney, 1st Infantry Division, Wurzburg, Germany, 1996-1998; Chief of Claims, U.S. Army
Field Artillery Center, Fort Sill, Oklahoma, 1996; Trial Counsel, U.S. Army Field Artillery Center, Fort Sill,
Oklahoma, 1994-1996; Legal Assistance Attorney, U.S. Army Field Artillery Center, Fort Sill, Oklahoma, 1993-
1994. Member of the Bar of Maryland & District of Columbia; admitted to practice before the U.S. Supreme Court,
Court of Federal Claims, Court of Appeals for the Armed Forces.

MAJ STEVEN R. PATOIR, JA, Professor and Vice-Chair, Contract and Fiscal Law Department. B.S., State
University of New York, College at Plattsburgh, 1987; J.D., University of Buffalo, 1990; Judge Advocate Officer
Basic Course, 1992; LL.M., Military Law, The Judge Advocate General’s School, 2000. Career Highlights: Deputy
Command Counsel; United States Army Contracting Command, Europe, Wiesbaden, Germany, 2001-2003. Chief,
Legal Assistance, and Contract and Fiscal Law Attorney; 1st Cavalry Division, Fort Hood, Texas, 1997-2000.
Administrative Law and Claims Attorney; V Corps, Hanau Field Office, Germany, 1995-1997. Defense Counsel;
Hanau Field Office, Germany, 1994-1995. Legal Assistance Attorney; Eighth U.S. Army, Yongsan, Korea, 1993.
Members of the Bars of North Carolina, New Jersey and the District of Columbia; admitted to practice before the
U.S. Supreme Court and the U.S. Court of Appeals for the Armed Forces.

MAJOR ANDREW S. KANTNER, JA, Professor, Contract and Fiscal Law Department. B.S.F.S., Georgetown
University School of Foreign Service (cum laude), 1991; J.D., New York University School of Law, 1994; Judge
Advocate Officer Basic Course (Distinguished Graduate), 1995; LL.M., Military Law, The Judge Advocate
General's School, 2004. Career Highlights: Administrative and Fiscal Law Attorney, 21st Theater Support
Command, Kaiserslautern, Germany, 2002-2003; Command Judge Advocate, 5th Signal Command, Mannheim,
Germany, 2000-2002; Chief, Legal Assistance, Mannheim Law Center, Germany, 1999-2000; Defense Counsel,
Yongsan Garrison, Korea, 1998-1999; Administrative Law Attorney, Trial Counsel, and Legal Assistance Attorney,
25th Infantry Division (Light), Schofield Barracks, Hawaii, 1995-1998. Member of the Bar of New York; admitted
to practice before the U.S. Supreme Court, and the U.S. Court of Appeals for the Armed Forces.

MAJOR MICHAEL S. DEVINE, JA, Professor, Contract and Fiscal Law Department, B.A., Pennsylvania State
University, 1988; J.D., University of Maryland School of Law, (with Honors) 1995; Judge Advocate Officer Basic
Course, (Honor Graduate) 1995; LL.M., Military Law, The Judge Advocate General's School, (Honor Graduate)
2005. Career Highlights: Deputy Officer-In-Charge, Northern Law Center, SHAPE (Mons), Belgium, 2002-2004;
Trial Defense Counsel, Katterbach, Germany, 2000-2002; Post Tax Officer, III Corps and Fort Hood, Fort Hood,
Texas, 2000; Chief of Military Justice, Task Force Eagle, Tuzla, Bosnia-Herzegovina, 1999; Trial Counsel and
Senior Trial Counsel, 1st Cavalry Division, Fort Hood, Texas, 1997-1999; Administrative and Operational Law
Attorney, 1st Cavalry Division, Fort Hood Texas, 1996-1997; Business Manager and Staff, Office of the General
Counsel, Contracts Branch, National Security Agency, Fort Meade, Maryland, 1991-1995; Construction Supervisor
and Sales Manager, Ryan Homes, Baltimore, Maryland, 1988-1991. Member of the Bar of Maryland; admitted to
practice before the U.S. Supreme Court, and the U.S. Court of Appeals for the Armed Forces.

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MAJOR MARCI A. LAWSON, USAF, Professor, Contract and Fiscal Law Department.
B.A., The Ohio State University (summa cum laude) 1992; J.D., University of Toledo College of Law, 1995; Air
Force Judge Advocate Staff Officer Course, 1996; Squadron Officer’s School, 2001; Air Command and Staff
College, 2004; LL.M., Military Law, The Judge Advocate General’s School, 2005. Career Highlights: Deputy Staff
Judge Advocate, Office of the Staff Judge Advocate, 314th Airlift Wing, Little Rock Air Force Base, Arkansas,
2003-2004; Staff Judge Advocate, 64th Air Expeditionary Wing (Qatar), February-July 2003; Chief of Claims,
Office of the Staff Judge Advocate, 314th Airlift Wing, Little Rock Air Force Base, Arkansas, 2001-2002; Area
Defense Counsel, Air Force Legal Services Agency, Charleston Air Force Base, South Carolina, 1999-2001; Chief,
Adverse Actions, Office of the Staff Judge Advocate, 437th Air Mobility Wing, Charleston Air Force Base, South
Carolina, 1998-1999; Chief, Contract and Environmental Law; and Chief, Legal Assistance and Adverse Actions,
Office of the Staff Judge Advocate, 27th Fighter Wing, Cannon Air Force Base, New Mexico, 1995-1998. Member
of State Bar of Ohio; admitted to practice before the U.S. Court of Criminal Appeals for the Armed Forces.

MAJOR MICHAEL L. NORRIS, JA, Professor, Contract and Fiscal Law Department. B.S., Eastern Michigan
University (summa cum laude) 1990; J.D., Wayne State University Law School (cum laude), 1993; Judge Advocate
Officer Basic Course (Honor Graduate), 1994; LL.M., Military Law, The Judge Advocate General's School, 2003.
Career Highlights: Deputy Command Counsel, U.S. Army Contracting Command, Europe, Seckenheim and
Wiesbaden, Germany, 2003-2005; Chief, Criminal Law Division and Chief, Administrative Law Division, U.S.
Army Special Operations Command, Fort Bragg, North Carolina, 2000-2002; Brigade Judge Advocate, 3d
Recruiting Brigade, Fort Knox, Kentucky, 1998-2000; Defense Counsel, Fort Polk, Louisiana 1998; Defense
Counsel, Tuzla, Bosnia-Herzegovina, 1997-1998; Operational Law Observer-Controller, Joint Readiness Training
Center , Fort Polk, Louisiana, 1996-1997; Trial Counsel, Fort Leonard Wood, Missouri, 1994-1996. Member of the
Bar of Michigan; admitted to practice before the U.S. Supreme Court and the U.S. Court of Appeals for the Armed
Forces.

MAJOR JENNIFER C. SANTIAGO, JA, Professor, Contract and Fiscal Law Department. B.A., University of
Michigan, 1991; J.D., St. Thomas University School of Law, 1995; Judge Advocate Officer Basic Course, 1996;
LL.M. Military Law, The Judge Advocate General's School, 2005. Career Highlights: Deputy Officer-In-Charge,
Patton Law Center, V Corps, Heidelberg, Germany, 2004; Chief, Military Justice, Combined Joint Task Force 7 and
V Corps, Baghdad, Iraq, 2003-2004; Senior Trial Counsel, Mannheim Law Center, 21st Theater Support Command,
Mannheim, Germany, 2002-2003; Attorney, Military and Civil Law Division, Office of the Judge Advocate, U.S.
Army Europe and 7th Army, Heidelberg, Germany, 2000-2002; Assistant Legal Advisor, Office of the NATO
Stabilization Force Legal Advisor’s Office, Sarajevo, Bosnia-Herzegovina, 2000; Trial Counsel, 2d Armored
Cavalry Regiment, 1/509th Parachute Infantry (ABN) and the Operations Group, Joint Readiness Training Center
and Fort Polk, Fort Polk, Louisiana, 1998-1999; Contract Law Attorney, and Chief, Administrative Law, Office of
the Staff Judge Advocate, Fort Polk, Louisiana, 1996-1998. Member of the Bar of Florida; admitted to practice
before the U.S. Supreme Court and the U.S. Court of Appeals for the Armed Forces.
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BIOGRAPHIES OF RESERVE PROFESSORS

MAJOR DANIELLE M. CONWAY (USAR), Associate Professor of Law & Director, Hawai`i Procurement
Institute, The University of Hawai`i, William S. Richardson School of Law; Of Counsel, Intellectual Property &
Government Contracts, Alston Hunt Floyd & Ing, Honolulu, Hawaii; B.S., New York University, Stern School of
Business, 1989; J.D. (cum laude), Howard University School of Law, 1992; dual LL.M., Government Procurement
Law & Environmental Law, George Washington University Law School, 1996; Judge Advocate Officer Basic
Course, 1993; Judge Advocate Officer Advanced Course, 2000; Command General Staff College, 2005. Career
Highlights: 2004 University of Hawai`i Regents' Medal Recipient for Excellence in Teaching; 2003-2004
Outstanding Professor of the Year, William S. Richardson School of Law. Assistant Professor of Law, The
University of Memphis, Cecil C. Humphreys School of Law, 1998-2000; Instructor of Law, Georgetown University
Law Center, 1996-1998; Assistant Counsel for Policy, Information, and Programs, 1995-1996 & Assistant Counsel
for Procurement, 1993-1995, Headquarters, U.S. Army Corps of Engineers, Office of the Chief Counsel, Honors
Program. Significant publications appear in the Asian Pacific Law & Policy Journal, the Santa Clara Law Review,
the University of Richmond Law Review, the Washington University Global Studies Law Review, and the Howard
Law Journal. Admitted to the Bars of the Commonwealth of Pennsylvania, the State of New Jersey, the United
States District Court for the District of New Jersey, the District of Columbia, the United States Court of Military
Review, and the State of Hawai`i (pending).

MAJOR KATHERINE E. WHITE (USAR), Associate Professor of Law, Wayne State University Law School.
B.S.E. Princeton University, 1988; J.D., University of Washington, 1991, LL.M., Intellectual Property Law, George
Washington University Law School, 1996. After graduating from law school, Major White served on active duty in
the U.S. Army Corps of Engineers, Office of the Chief Counsel’s Honors Program. After leaving active duty, she
clerked for the Honorable Randall R. Rader, Circuit Judge for the United States Court of Appeals for the Federal
Circuit. She received the Fulbright Senior Scholar Award for 1999-2000, hosted by the Max Planck Institute for
Foreign and International Patent, Copyright, and Competition Law in Munich, Germany. Elected in November
1998, Major White currently serves as a member of the University of Michigan Board of Regents. Major White
served on the United States Patent and Trademark Patent Public Advisory Committee from 2000-2002. From 2001-
2002, Major White served as a White House Fellow, serving as Special Counsel to the Secretary of Agriculture, Ann
M. Veneman.

MAJOR STEVEN L. SCHOONER (USAR), Associate Professor and Co-Director of the Government
Procurement Law Program, George Washington University School of Law. Previously: Associate Administrator
for Procurement Law and Legislation, Office of Federal Procurement Policy (OFPP); Trial Attorney, Commercial
Litigation Branch, Department of Justice; Commissioner, Armed Services Board of Contract Appeals; practice with
private law firms. B.A. from Rice University, J.D. from the College of William and Mary, and LL.M. from the
George Washington University. Adjunct Professor, Contract and Fiscal Law Department, The Judge Advocate
General's School. Fellow and Member of the Board of Advisors of the National Contract Management Association
(NCMA); Certified Professional Contracts Manager (CPCM); Faculty Advisor, the American Bar Association's
Public Contract Law Journal; Editorial Board, Public Procurement Law Review (UK); and Advisory Board, The
Government Contractor. Co-author (with Professor Ralph C. Nash, Jr.) of The Government Contracts Reference
Book: A Comprehensive Guide To The Language of Procurement (published by George Washington University, 2d
ed., 1998; 1st ed., 1992).

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CHAPTER 13

CONTRACT CHANGES

I. INTRODUCTION.....................................................................................................................1
II. FORMAL CONTRACT CHANGES.........................................................................................1
A. Types of Formal Changes.......................................................................................................1
B. Modifying a Contract..............................................................................................................2
C. Prerequisites for Formal Changes...........................................................................................2
III. CHANGES CLAUSE COVERAGE........................................................................................3
A. Purpose of the Clause.............................................................................................................3
B. Limitations..............................................................................................................................3
C. Scope Determinations.............................................................................................................3
D. Scope Determination Factors..................................................................................................4
E. The Duty to Continue Performance........................................................................................7
IV. OVERVIEW OF CONSTRUCTIVE CHANGES....................................................................8
A. Elements of a Constructive Change........................................................................................8
B. Types of Constructive Changes..............................................................................................9
V. CONTRACT INTERPRETATION PRINCIPLES...................................................................9
A. Main Issues.............................................................................................................................9
B. Contract Interpretation Process.............................................................................................10
C. Intrinsic Evidence of Intent...................................................................................................10
D. Extrinsic Evidence of Intent.................................................................................................13
E. Allocation of Risk for Ambiguous Language.......................................................................16
VI. DEFECTIVE SPECIFICATIONS - OVERVIEW................................................................18
A. Theories of Recovery............................................................................................................18
B. Causation...............................................................................................................................18
VII. DEFECTIVE SPECIFICATIONS - IMPLIED WARRANTY OF SPECIFICATIONS.......18
A. Basis for the Implied Warranty.............................................................................................18
B. Specification Types...............................................................................................................19
C. Scope of Government Liability.............................................................................................19
D. Recovery under the Implied Warranty of Specifications.....................................................21
VIII. DEFECTIVE SPECIFICATIONS - IMPRACTICABILITY/IMPOSSIBILITY OF
PERFORMANCE..........................................................................................................................23

IX. INTERFERENCE AND FAILURE TO COOPERATE........................................................25
A. Theory of Recovery..............................................................................................................25
B. Bases for Interference Claims...............................................................................................26
C. Bases for Failure to Cooperate Claims.................................................................................26

X. FAILURE TO DISCLOSE VITAL INFORMATION (SUPERIOR KNOWLEDGE)..........28
A. Theory...................................................................................................................................28
B. Elements of the Implied Duty to Disclose Vital Information...............................................28
XI. CONSTRUCTIVE ACCELERATION...................................................................................30
A. Theory of Recovery..............................................................................................................30
B. Elements of Constructive Acceleration................................................................................30
C. Actions That May Lead to Constructive Acceleration.........................................................30
D. Measure of Damages............................................................................................................31
XII. NOTICE REQUIREMENTS.................................................................................................32
A. Notice of an Equitable Adjustment by the Contractor..........................................................32
B. Notice of an Equitable Adjustment by the Government.......................................................34
XIII. ANALYZING CHANGES ISSUES.....................................................................................34
XIV. CONCLUSION.....................................................................................................................35
APPENDIX A: CHANGES CLAUSE (SUPPLIES), FAR 52.243-1..........................................37
APPENDIX B: CHANGES CLAUSE (SERVICES) FAR 52.243-1 (ALTERNATE I) ............39
APPENDIX C: CHANGES CLAUSE (CONSTRUCTION ) FAR 52.243-4………………..…41
APPENDIX D: STANDARD FORM (SF) 30, AMENDMENT OF SOLICITATION/
MODIFICATION OF CONTRACT..………………………………………….43