Earlier this week, the Court of Appeals for the Federal Circuit reversed and remanded the Court of Federal Claims’ August 2014 decision in CGI Federal Inc. v. The United States, in which the Court of Federal Claims ruled that the Centers for Medicare and Medicaid Services (CMS) could include contract clauses that deviated from federal government commercial contracting rules. As discussed by Reed Smith attorneys Lorraine Campos, Leslie Monahan and Nkechi Kanu in “FAR Part 12 Applies to CMS Orders on Federal Supply Schedule Contract,” a post on the Global Regulatory Enforcement Law Blog, the appellate court expressed its disagreement by ruling that Federal Acquisition Regulation (FAR) Part 12 – which concerns the acquisition of commercial items – applies to Federal Supply Schedule (FSS) contracts, and that FAR Part 12’s disallowance of terms inconsistent with customary commercial practices applies to requests for quotes issued by CMS that are pursuant to an underlying FSS contract. FAR Part 12, the appellate court stated, applies to orders made pursuant to existing FSS contracts by its terms.

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