April 20, 2015
It is always worth repeating developments that impact our readers. As we previously reported here, 2014 was an exceptional year in False Claims Act enforcement, with the Department of Justice (DOJ) announcing a record $5.69 billion in FCA recoveries. In this regard we admonished our readers that 2015 would be even worse – with a notable increase in prosecutorial scrutiny of qui tam…
March 23, 2015
Most contractors have at least a general understanding that suspension and debarment should be avoided like the plague. Being found nonresponsible and, therefore, ineligible to do business with the government (or its prime contractors and subcontractors) would be a death knell for many companies. As many contractors know, however, you can challenge a notice of suspension and debarment -- and even…
March 2, 2015
The Department of Justice recently announced that Mozaffar Khazaee has pleaded guilty to violating the Arms Export Control Act. DOJ Announcement. The violation occurred when Khazaee sent “sensitive, proprietary, trade secret and export controlled material relating to military jet engines for the U.S. Air Force’s F35 Joint Strike Fighter program and the F-22 Raptor program” to…
February 9, 2015
The United States Court of Appeals for the Sixth Circuit recently tackled the interesting issue of whether or not an awardee’s failure to modify its proposal prior to award – to reflect the pre-award departure of its proposed Project Manager – represents a false statement under the False Claims Act (FCA). Under the facts presented in United States ex rel. American Systems…
February 9, 2015
The Justice Department has announced that a 44 year old retired Army Sergeant Major working as a civilian contracting official for the Army, James Warner, was arrested on January 28th for allegedly soliciting bribes from company executives. DOJ Press Release.
According to the affidavit filed by the government in support of the criminal complaint, Warner met with executives of Company A, a…
February 2, 2015
In connection with a “pilot program” established by the National Defense Authorization Act of 2013 (NDAA), the U.S. Office of Special Counsel (OSC) is revising its regulations to expand who may file a whistleblower disclosure with OSC. Under the proposed rule, employees of Federal contractors, subcontractors, and grantees will be able to disclose wrongdoing within the Federal government if they…
January 27, 2015
The FAR Council recently issued a new Interim Rule (correction here), implementing President Obama’s Executive Order 13658 establishing a $10.10 per hour minimum wage for employees of covered federal contractors and subcontractors starting January 1, 2015. The new Rule also implements, for FAR-covered contracts, the Final Rule issued by the Department of Labor (DOL) on October 10, 2014,…
January 12, 2015
Beware the revolving door. It can hit you or those with you on the way in or the way out. The Government Accountability Office (GAO) recently reminded us of this fact when it sustained a protest by International Resources Group (IRG) regarding an organizational conflict of interest. The problem? The Agency (USAID) failed to properly investigate the awardee AECOM’s hiring of a…
January 12, 2015
Happy New Year! The start of a new year is a time for New Year’s Resolutions. Here are several we strongly urge you to follow-through on early in 2015.
1. Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies operate on a calendar year for tax reporting purposes. For such companies the start of a new tax year, and the end of the prior year, means a change…
December 2, 2014
Two years after a report critical of how the Centers for Medicare & Medicaid Services (CMS) addresses potential conflicts of interest (COIs) when choosing Zone Program Integrity Contractors (ZPICs), the chickens are finally coming home to roost – with extreme prejudice. In July 2012, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG) issued a report…
November 18, 2014
Defense companies often conduct internal audits to ensure the integrity of their business systems. These internal audits may contain information about company operations and internal controls related to the performance of government contracts. Many defense contractors are not willing to share their internal audit reports with the government, and for good reasons.
Section 832 of the National…
November 18, 2014
Given the FAR 9.103(b) mandate that “no purchase or award shall be made unless the contracting officer makes an affirmative determination of responsibility,” FCi Federal, Inc. (FCi) was surprised when the Department of Homeland Security (DHS) awarded a $210 million contract to FCi’s competitor, USIS PSD. Why? Because the award came after a flurry of media reports containing allegations of…
April 20, 2015
It is always worth repeating developments that impact our readers. As we previously reported here, 2014 was an exceptional year in False Claims Act enforcement, with the Department of Justice (DOJ) announcing a record $5.69 billion in FCA recoveries. In this regard we admonished our readers that 2015 would be even worse – with a notable increase in prosecutorial scrutiny of qui tam…
March 23, 2015
Most contractors have at least a general understanding that suspension and debarment should be avoided like the plague. Being found nonresponsible and, therefore, ineligible to do business with the government (or its prime contractors and subcontractors) would be a death knell for many companies. As many contractors know, however, you can challenge a notice of suspension and debarment -- and even…
March 2, 2015
The Department of Justice recently announced that Mozaffar Khazaee has pleaded guilty to violating the Arms Export Control Act. DOJ Announcement. The violation occurred when Khazaee sent “sensitive, proprietary, trade secret and export controlled material relating to military jet engines for the U.S. Air Force’s F35 Joint Strike Fighter program and the F-22 Raptor program” to…
February 9, 2015
The United States Court of Appeals for the Sixth Circuit recently tackled the interesting issue of whether or not an awardee’s failure to modify its proposal prior to award – to reflect the pre-award departure of its proposed Project Manager – represents a false statement under the False Claims Act (FCA). Under the facts presented in United States ex rel. American Systems…
February 9, 2015
The Justice Department has announced that a 44 year old retired Army Sergeant Major working as a civilian contracting official for the Army, James Warner, was arrested on January 28th for allegedly soliciting bribes from company executives. DOJ Press Release.
According to the affidavit filed by the government in support of the criminal complaint, Warner met with executives of Company A, a…
February 2, 2015
In connection with a “pilot program” established by the National Defense Authorization Act of 2013 (NDAA), the U.S. Office of Special Counsel (OSC) is revising its regulations to expand who may file a whistleblower disclosure with OSC. Under the proposed rule, employees of Federal contractors, subcontractors, and grantees will be able to disclose wrongdoing within the Federal government if they…
January 27, 2015
The FAR Council recently issued a new Interim Rule (correction here), implementing President Obama’s Executive Order 13658 establishing a $10.10 per hour minimum wage for employees of covered federal contractors and subcontractors starting January 1, 2015. The new Rule also implements, for FAR-covered contracts, the Final Rule issued by the Department of Labor (DOL) on October 10, 2014,…
January 12, 2015
Beware the revolving door. It can hit you or those with you on the way in or the way out. The Government Accountability Office (GAO) recently reminded us of this fact when it sustained a protest by International Resources Group (IRG) regarding an organizational conflict of interest. The problem? The Agency (USAID) failed to properly investigate the awardee AECOM’s hiring of a…
January 12, 2015
Happy New Year! The start of a new year is a time for New Year’s Resolutions. Here are several we strongly urge you to follow-through on early in 2015.
1. Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies operate on a calendar year for tax reporting purposes. For such companies the start of a new tax year, and the end of the prior year, means a change…
December 2, 2014
Two years after a report critical of how the Centers for Medicare & Medicaid Services (CMS) addresses potential conflicts of interest (COIs) when choosing Zone Program Integrity Contractors (ZPICs), the chickens are finally coming home to roost – with extreme prejudice. In July 2012, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG) issued a report…
November 18, 2014
Defense companies often conduct internal audits to ensure the integrity of their business systems. These internal audits may contain information about company operations and internal controls related to the performance of government contracts. Many defense contractors are not willing to share their internal audit reports with the government, and for good reasons.
Section 832 of the National…
November 18, 2014
Given the FAR 9.103(b) mandate that “no purchase or award shall be made unless the contracting officer makes an affirmative determination of responsibility,” FCi Federal, Inc. (FCi) was surprised when the Department of Homeland Security (DHS) awarded a $210 million contract to FCi’s competitor, USIS PSD. Why? Because the award came after a flurry of media reports containing allegations of…
