DOD Strengthens Rule Targeting Negligent Contractors

Law360, New York (September 19, 2011, 3:14 PM EDT) -- The U.S. Department of Defense on Friday began allowing contracting officers to reduce or deny award fees to contractors believed to have jeopardized the safety of U.S. government workers in instances where U.S. courts have no jurisdiction over the contractors.

The interim rule, which went into effect immediately, expands on a November interim rule targeting contractors and subcontractors that act with gross negligence or recklessly disregard the health and safety of government personnel.

Under the rule, contracting officers have new authority to reduce or deny award...
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