Simple English definitions for legal terms
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Government contracts refer to agreements between the United States government and private companies for the procurement of goods and services. The government is the largest buyer of goods and services in the world, with the Department of Defense accounting for the majority of federal acquisitions.
Government contracts are subject to a variety of regulations, policies, and statutes that aim to ensure competition, proper spending of taxpayer money, and the advancement of socioeconomic goals. These contracts also contain mandatory clauses that give the government special contractual rights, such as the ability to unilaterally change contract terms and conditions or terminate the contract.
Claims and litigation resulting from government contracts follow unique procedures under the Contract Disputes Act. All government contracts are subject to the Federal Acquisition Streamlining Act, which encourages the government to purchase existing products rather than commissioning their own exclusive goods. The Federal Acquisition Regulation (FAR) is the primary set of regulations governing government contracts.
Contracting officers are the only individuals authorized to contractually bind the United States government. They have the authority to award, administer, and terminate government contracts. Government contract claims must first be presented to the contracting officer, and can then be appealed to the United States Court of Federal Claims or one of the Boards of Contract Appeals.
Examples of government contracts include agreements for the construction of military bases, the procurement of weapons systems, and the provision of IT services to government agencies. These contracts are subject to strict regulations and oversight to ensure that taxpayer money is spent wisely and that the government receives the goods and services it needs.