DEFINITION

• Government Contracts Law is comprised of all the statutes, cases, rules, regulations and procedures with which any company must comply to do business with the government (federal, state or municipal).

• These rules and regulations apply to virtually every aspect of making, performing and eventually terminating a contract with a government agency or department.

• The set of laws and regulations that cover government contracts is immense, complex and constantly changing. While the laws and rules may be complicated, many of the government's contracting regulations are designed to prevent favoritism and to force the government's contracting officer to give all bidders fair access to be awarded a contract with the government.

• The rules are also intended to protect taxpayers by making sure that the government gets the lowest price for goods and services from the private sector, thus making certain that the contract is fair to taxpayers.

FIND A GOVERNMENT CONTRACTS ATTORNEY IN YOUR AREA.

RELATED PRACTICE AREAS

Business & Commercial Law
State, Local and Municipal Law
Administrative Law

BUZZWORDS

Acquisition - In Government Contracts Law, acquiring supplies or services by contract with appropriated funds, by and for the use of the federal government.

Appropriation - In governmental accounting, an expenditure authorized for a specified amount, purpose and time.

Bid Protests - In Government Contracts Law, the General Accounting Office (GAO) forum for bidders and offerors who seek federal government contracts, and believe that a contract has been or is about to be awarded in violation of the laws and regulations that govern contracting with the federal government.

CFR - (Code of Federal Regulations) A codification of the rules published in the Federal Register by the executive departments and agencies of the federal government. The CFR is divided into 50 titles that represent broad areas subject to federal regulation.

Comptroller General Procurement Decisions - The Comptroller General's decisions issued regarding appropriations, bid protests, major rules and related issues. These decisions are prepared by the GAO's Office of General Counsel.

Contract - An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable by law.

Comptroller General - Government official (head of GAO) whose main function is to audit governmental agencies. Appointed by the president with the consent of the Senate for a 15-year term.

Federal Acquisitions Regulations - (FARs) Regulations established to codify uniform policies for acquisition of supplies and services by executive agencies. Published in CFR and updated in the Federal Register.

Federal Register - A daily publication in which the U.S. administrative agencies publish their rules and regulations, including proposed rules and regulations for public comment.

General Accounting Office - (GAO) The federal government office that carries out legal, accounting, auditing and claims settlement functions with respect to federal government programs and operations, as assigned by Congress. The recommendations of this office are designed to make government operations more efficient and effective.

PRACTICE AREA NOTES

• When a business sells goods or services to a government agency, the government always has the home-court advantage, since the government's own peculiar laws and rules apply to the contract. Despite this advantage, many small and large businesses have done extremely well selling to the government year after year, usually guided by a lawyer who has specific experience helping clients sell successfully to the government.