Government Contracts Monitor

Making the Right Decision about Internal Investigations

In today’s environment of constantly changing regulations and the increasing drum beat of eliminating real or imagined “fraud and abuse,” businesses are often hyper-concerned about compliance issues.  Once a company has identified a possible issue, the question becomes whether or not to conduct an investigation and, if so, what type of investigation to conduct.

Sixth Circuit Rejects FCA Liability for Technical Violations

The Sixth Circuit recently announced an important limitation on False Claims Act (“FCA”) liability by holding that “irrespective of whether the [defendant] in fact violated the regulations, [t]he False Claims Act is not a vehicle to police technical compliance with complex federal regulations.”  United States v. Renal Care Group, Inc., No. 11-5779 (6th Cir. Oct. 5, 2012).

Two Government Contractors Get to “Kickback” in Prison for Accepting $1 Million from a Subcontractor

Clearing munitions in Iraq and keeping them out of enemy hands is very challenging work.  The Project Manager and Deputy Project Manager of an international government contractor made that work even more challenging by taking kickbacks from a subcontractor.

Contractor Time Barred over Untimely Caterpillar Contract Claim

The Court of Federal Claims recently dismissed several patently meritorious claims involving the Army’s leasing of Caterpillar construction vehicles in connection with the Iraq war because they were untimely under the relevant statutes of limitation.  Uniglobe General Trading & Contracting Co. v. United States, No. 10-204C (Fed. Cl. Sept. 27, 2012). 

Those Certified Payroll Reports From Subcontractors Really Are Important

A general contractor constructing buildings at Fort Campbell, KY learned the hard way in United States of America ex rel. Wall v. Circle C Construction, LLC, No. 10-5645 (6th Cir. Oct. 1, 2012) that certified payrolls are important for itself and all of its subcontractors.  Failure to comply with the Davis Bacon Act resulted in a seven figure False Claims Act judgment against the prime contractor. 

ASBCA Agrees: Not All Contract Extensions Are Created Equal

In the recent decision of APAC-Southeast, Inc. n/k/a Oldcastle Southern Group, ASBCA No. 58057 (Sept. 27, 2012), the Armed Services Board of Contract Appeals (ASBCA) expressly adopted the Federal Circuit’s interpretation of FAR 52.217-8 and 52.217-9, two standard clauses providing for contract extensions in holding that the Government may extend services under the fixed price of the contract even after the contract term has ended without paying the contractor’s additional costs. 

Defective Debriefings - Where's the Remedy?

Debriefings are a key component of most competitive procurements. They can occur before or after contract award and can and should be requested by successful and unsuccessful offerors alike.

It’s Good to Be King: COFC Applies Sovereign Act Doctrine to Negligence Claims

In a case of first impression, the Court of Federal Claims (COFC) held that the Sovereign Acts Doctrine barred claims by a contractor for damage to its equipment during Hurricane Katrina that the contractor alleged was the caused by the Army Corps of Engineers’ negligent design, maintenance, and operation of the New Orleans levees. C.R. Pittman Construction Co. v. United States, No. 08-196C (Fed. Cl. Sept. 28, 2012). 

Mother Always Said You Shouldn’t Lie -- Especially About Being A Service-Disabled Veteran to Get Government Contracts

Employment of veterans returning from service is of critical importance to our country and our economy -- those who serve our country should be afforded every opportunity to succeed in business when they return from service.   Unfortunately, a recent federal criminal case in New York shows that fraud knows no bounds, highlights some serious government procurement integrity issues at the Department of Defense, and also provides guidance regarding loss calculation in government contract fraud cases.

Talk To Me: The Cone of Silence

It still comes as a surprise to some contractors that the Government is not required to talk with them about their proposal and, even when it does, that it is not required to have the same conversation with them as it does with their competitors.  This is particularly true in FAR Part 8 procurements under a GSA Federal Supply Schedule. So, don't be surprised if the Government won't talk to you - if it retreats into a cone of silence.