- Ramifications that are associated with being a subcontractor
Subcontractors in the government law have their rights and they can protest issues that arise between them and the main contractors. In this case, Mr Jonny Jones is a subcontractor and the main contractor is Jimmy Smith. According to the government law, the main contractor is supposed to pay all the money due to the subcontractors. The advice to the subcontractor is that if the main contractor refuses to pay money owed to subcontractor, the subcontractor is supposed to give a notice of one month to pay to the contractor. The client who in this case is the government is also supposed to be given a copy of the notice. After the notice if the money is not paid, Mr Jonny will have a right to take a direct action against the contractor. That means that Mr Johnny can sue Jimmy Smith if anything goes wrong.
If the main contractor becomes insolvent or he is under receivership or liquidation, the direct action shall still apply. The direct action shall only be taken against the payments that correspond to the services given by subcontractor as stipulated by the client. Mr Jonny is supposed to be sure that even if the contractor becomes insolvent he can take a direct action and sue him in a court that deals with such matters.
- 2. The options available to Pacific Gravel
The pacific Gravel Company has received the two bids from Joel Bob and from Wong Foo. One of the options that are available for Pacific Gravel is that it can choose to give the subcontract to the company with the lowest bid or the one with the highest bid. The company with the lower bid is Joe Bobs Company and it is owned and managed by non- minorities. Pricing in subcontracts is a major factor and the contractors awarding the contracts consider it but it can also be outweighed by other reasons. The second company that have submitted their bid is the Wong Foo that is certified under the small disadvantaged business and registered under the small business Act. It has the highest bid as compared to the other company.
I would advice the Pacific Gravel company to award the contract to Wong Foo even if it has a higher bid than the other company. According to Far 52.219-8, (2005), and Section 8 (d) of the small business Act, it is required that small businesses registered under it to have a maximum practicable opportunity to participate as subcontractors. Such businesses include Veteran owned small businesses, woman owned small businesses, and small disadvantaged businesses. The Wong Foo falls under this category because it is owned by a woman, and it has been registered under small disadvantaged businesses. The option available for Pacific Gravel is to give the contract to Wong Foo.
- 3. Termination for default and termination for convenience
Termination for default is a contract clause and it gives one party the right to terminate the contract. Termination for default applies when the contractor fails to perform his duties as specified in the terms. For the unfinished part of the contract, the contractor is not entitled to any payment and he is liable for the money that was paid in advance. Termination for default differs from termination for convenience in that termination for convenience is a standard clause in government contracts. It gives government the right to terminate contracts without giving any reason and they can do it at any time. The contractor can negotiate for equitable recovery of losses and cost that he has incurred. The difference between the two terminations is that under default the contractor is given a reason but under convenience there are no reasons given.
If Ronald is to terminate the contract, the best recommendation would be to use the termination for default because it applies in that he has not finished the work and if the contract is terminated he will not lose any money, but will be paid for the work done. The department of interior has given a reason for termination and so it can only be termination for default.
- 4. Whether to file a protest, dispute or both
Mr Wyne Reliford is supposed to file for a protest and not for dispute. Wayne did not agree with the decisions of the contracting officers who were dealing with the contract award to Camp Apache. For his voice to be heard, he is supposed to file a protest concerning the bid or the award. To file a protest, the person filling it must be an interested party and in our case Wyne is an interested party. He must have a direct economic interest and it must be that he would be affected if the contract is not awarded to him. He is supposed to be sure that if his protest is sustained he can win the award.
The first thing that Wyne is supposed to do before filling the protest is to try and resolve the issues with the contracting agency as required by the government contracting regulations which is through open conversations. If things are not resolved by the agency through conversation, the bid protest is submitted to the agency and a neutral third party is involved. If Wayne succeeds to file the protest within 10 days after the award of the contract, the agency will halt the contract performance until the protest is resolved.
- 5. Advice to Lieutenant Commander Ace Ventura on what to do
Ace is currently working with the Navy and is interested in getting another job with the World Dominion a defence contractor. The advice to Ace would be to follow the right procedure that is used in termination of job contracts. Before asking for a job from World Dominion, he can first give a notice to his current employer of about one month as it is required. This will depend on the contract he made when he was getting the employment. He is also supposed to compare both employers before making decision and choose the one with good terms.
Ace is well prepared to get the job and he has enrolled in a school to upgrade his requirements. He has also bought some books which are to help him. In his trip to Stockholm representing the Navy, he is not supposed to ask for the job because he will be in the cause of duty and is supposed to work at the best interest of his employer. Asking for a job after meeting with the CEO and the President of World Dominion at a business meeting will not be in accordance with the law. He is supposed to notify the employer of his intentions and follow the procedure as laid down.
Reference
FAR, (2005), Federal Acquisition Regulation, (online) Available from http://farsite.hill.af.mil/ Viewed on 10 May 2011.
