As contractors, are we subject to any Army Regulations in our tasking area such as maintenance, or do ARs not apply to us as contractors, with tasking required to be specified in the contract vehicle, be it a SOW, or PWS in our case? If I am correct, what is the reference?
It appears the directions you are receiving from the LRC Director is correct! As a contractor, you are only subject to any regulations specifically referenced in your contract; not all ARs.
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Because your Performance Work Statement (PWS) contains references to Army Regulations (I am assuming that AR 750-1 is one of them), then “YES” you are required under the terms and conditions of the contract to follow that AR. It has “equal weight” to any specific tasking identified in the PWS.
The vast majority of government contracts reference specifications, clauses, provisions, codes, regulations, etc. In fact, Federal Acquisition Regulations require contracting officers to incorporate things by reference to the maximum extent practicable. Including these in full text or as attachments to the contract or verbatim in a PWS would be tedious and voluminous. It is much more efficient and effective to “reference” them.
It is very common for maintenance regulations or specifications to be incorporated by reference in maintenance contracts. It is imperative the soldiers or military personnel operating those vehicles or responsible for deploying their use know they have been repaired and maintained in accordance with these regulations for operational readiness purposes.