Opinion ID: 746415
Heading Depth: 3
Heading Rank: 3

Heading: Did the Air Force violate DoD Directive 5000.1 or DAR 1-334?

Text: 21 WES's arguments that the inclusion of production options in this contract also violated DoD Directive 5000.1 and DAR § 1-334 are easily rejected. DAR § 1-334 limits the inclusion of ceiling priced production options when there is undue risk to the contractor or the government. This regulation, however, is limited on its face to major systems, and the Board found (and WES concedes) that the radar system at issue here is not a major system. DoD Directive 5000.1, although it does say that its management principles ... are applicable to all programs, says nothing specifically against the inclusion of production options in development contracts, and its general management principles cannot be read to bar the type of options included here. 22