Government Contracts MonitorDebarment for Service Contract Act Violations: Reversals are “Unusual”June 3, 2009 The Service Contract Act (SCA) imposes a three-year debarment for a contractor’s failure to pay its employees prevailing wage rates and fringe benefits specified by the Department of Labor. Because the SCA regulations impose debarment for all violations of the Act unless the contractor can show “unusual circumstances,” debarment for SCA violations is theoretically the norm, not the… Executive Order Seeks to Limit Displacement of Qualified Workers Performing Service ContractsMay 29, 2009 On January 30, 2009, President Obama signed Executive Order 13495 (“Order”), which affects a contractor’s or subcontractor’s ability to hire new employees when a contract to provide services to the Federal Government expires and a new contract for the same services is awarded to a different contractor. Specifically, the Order applies to service contractors and subcontractors providing similar…Custer Battles Decision Introduces More Uncertainty to Scope of False Claims ActMay 27, 2009 On April 10th, the U.S. Court of Appeals for the Fourth Circuit issued a ruling in the Custer Battles case clarifying the potential False Claims Act liability of contractors performing contracts in Iraq and elsewhere.
The judgment partially reverses a controversial decision by the U.S. District Court for the Eastern District of Virginia that limited the application of the False Claims Act (FCA) to… Government Contracts Alternative Dispute ResolutionMay 19, 2009 Alternative dispute resolution (ADR) promises to play an increasingly critical role in government contracts litigation.
In its broadest sense, ADR is any process that settles a dispute outside of the courtroom, for example, mediation and arbitration (read a full article on the concept, as applied to government contracts, here). ADR has grown increasingly popular as litigation costs… E-Verify Contractor Rule Postponed for Third Time – Until June 30, 2009April 21, 2009 On April 16, the Federal government again delayed the requirement that Federal contractors use the E-Verify program – DHS’ electronic immigration compliance system to confirm employees’ employment eligibility. Formal notice of the change was issued in the Federal Register the next day, making clear that the new clause at 52.222-54, Employment Eligibility Verification, is not to be… Recovery Act’s New FAR Clauses Add Complexity to Buy American Compliance for Construction FirmsApril 21, 2009 On March 31, 2009, the Federal Acquisition Regulation (FAR) Councils unveiled interim “Buy American” regulations and FAR clauses applicable to construction projects funded by the American Recovery and Reinvestment Act of 2009 (ARRA/Recovery Act). The clauses implement ARRA §1605 – the controversial provision Congress inserted into the Recovery Act to prohibit the use of non-US… Violation of Price Reduction Clause Leads to Record Settlement by GSA ContractorApril 20, 2009 NetApp (formerly Network Appliance) has agreed to pay $128 million to settle a lawsuit alleging that it violated the False Claims Act (FCA), 31 U.S.C. §3729 et seq., by failing to offer the Government its best commercial pricing in violation of the terms of its General Services Administration (GSA) schedule contracts. The settlement was finalized April 15, 2009. The contract’s price reduction… New Regulations Control Procurement of Stimulus Funds ImmediatelyApril 1, 2009 On March 31, 2009, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (“Councils”) agreed on and implemented interim rules, effective March 31, 2009, amending the Federal Acquisition Regulation (“FAR”) in response to the American Recovery and Reinvestment Act (“ARRA” or “Stimulus Bill”). Specifically, the regulations… In Wake of Stimulus, Federal Government Struggles to Improve Grants WebsiteMarch 30, 2009 Grants.gov – the central portal for federal grant opportunities – may not be able to keep up with the unprecedented volume of grants expected to be awarded under the American Recovery and Reinvestment Act of 2009 (ARRA). According to a memo issued by Office of Management and Budget (OMB) Director Peter Orzag, the Grants.gov site is expected to see a 60% increase in usage due to ARRA. The… Stimulus Oversight Officials Named, Expect to Find FraudMarch 26, 2009 Earl Devaney, a former Massachusetts police officer, Secret Service agent, and current Department of Interior Inspector General, was tapped to head the Recovery Accountability and Transparency Board, which will oversee the use of over $750 billion in funds allocated by the American Recovery and Reinvestment Act of 2009 (the Stimulus). Mr. Devaney will be under intense… Oversight Panel Turns to Public For SuggestionsMarch 26, 2009 Congress has turned directly to the public to solicit advice on reforms to the federal contracting system. Senator Claire McCaskill, chair of the newly formed Homeland Security and Governmental Affairs Subcommittee on Contracting Oversight, announced the creation of an on-line discussion forum for members of the public to submit comments on government contracting reforms. Among the over 150… Days Numbered for Two Controversial Bush-Era Contracting Policies?March 19, 2009 In his less than two months in office, President Obama has already taken major steps to refocus the contracting system on transparency and accountability. Now, the Administration and Congress appear ready to scale back two Republican-supported contracting policies – Alaskan Native Corporation preferences and competitive sourcing requirements. Alaskan Native Corporation Preferences The first… |
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