Contractor Legal Fees Reform Act of 1988

Contractor Legal Fees Reform Act of 1988 - Prohibits the United States from reimbursing a contractor for any costs incurred by such contractor in connection with any proceeding that relates to a violation of, or failure to comply with, any Federal, State, or local law or regulation on the part of the contractor if the proceeding results in: (1) certain civil, criminal, or administrative action; or (2) debarment of the contractor or rescission of the contract.

Prohibits the United States from paying contractor attorney fee costs incurred in connection with violation proceedings not resulting in adverse actions, in excess of $75 per hour, unless the contracting officer, the agency board of contract appeals, or the person or body representing the agency involved finds that a special factor justifies an award of higher fees.