Arnold & Porter – This is the first in a series of articles examining the intersection of federal bankruptcy law with federal procurement law. The first and second articles consider unique challenges and opportunities facing federal contractors considering or undergoing bankruptcy. They focus on how standard provisions of the Federal Acquisition Regulation (FAR) affect rights at issue in bankruptcy proceedings, how government contracts are affected by the automatic stay in bankruptcy proceedings; how the Anti-Assignment Act affects contractor/debtors’ ability to assume and assign government contracts; how bankruptcy restricts the Government’s ability to terminate contracts; and how bankruptcy may limit a government contractor’s ability to seek contractual relief (e.g., equitable adjustments).
