Government Contracts Monitor

Department of Justice Gives False Claims Act Defendants New Hope

February 6, 2018

Two recently-issued Department of Justice (DOJ) memoranda spell significant changes in the enforcement – that is, lighter enforcement – of the False Claims Act (FCA). Specifically,

• First, on January 10, 2018, DOJ issued an internal memorandum encouraging all U.S. Attorneys’ offices to dismiss frivolous FCA qui tam lawsuits.
   
• This memo lists seven factors for U.S. Attorneys to consider in…

Short Take: Some Government Contracts Business Models Should Be Avoided

February 1, 2018

Earlier this week, the Department of Justice unsealed charges against a government contractor for his role in allegedly carrying out a multi-year, $2.6 million scheme to defraud at least 35 subcontractors located across the United States. The indictment, filed on January 30, 2018 in the Eastern District of California, charges Chester L. Neal Jr., 43, of Fresno, California, with two counts of mail…

Short Take: Treasury Increases Prompt Payment & Contract Disputes Act Interest Rates, Effective 1/1/18

January 24, 2018

The Treasury Department has announced that the Prompt Payment Act (“PPA”) interest rate is being increased to 2.625% per annum for the period of January 1, 2018 through June 30, 2018.  This interest rate is used to calculate the interest penalty paid by the Government when it fails to timely pay contractors for goods and services, as well as interest due under the Contract Disputes Act (“CDA”).…

If You're Looking for Protest Grounds, Look Early and Often for Agency Deviations from the Solicitation

January 18, 2018

While an agency’s failure to follow the terms of the solicitation stands as one of several basics grounds for a successful protest, such deviations are not always easy to spot. Often they do not become evident until the protest is well under way. The decision in the recent Government Accountability Office (GAO) case of East Coast Utility Contractors, Ltd., B-415493, B-415493.2 (January 16, 2018)…

If an "Exact Product" Is Required, Make Sure You Clearly Offer One

January 10, 2018

Faithful readers of the Government Contracts Monitor have been repeatedly reminded of an offeror’s responsibility to submit a well-written quotation clearly demonstrating its ability to comply with the solicitation’s requirements. (Here, for example.) Unfortunately, protesters continue to lose protests because of the failure to submit adequate offers. The recent Government Accountability Office…

New Year's Resolutions, 2018

January 3, 2018

Reassess Your Size Status, Update Your DSBS and SAM Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings

Happy New Year! The start of a new year is the time for New Year’s Resolutions.  Here are several we strongly urge you to follow-through on early in 2018.

    1.    Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies…

Happy Holidays!

December 21, 2017

If You’re Terminated for Convenience, Don’t Put Off Submission of Your Termination Settlement Claim

December 14, 2017

Busy contractors focused on day-to-day issues and future opportunities sometimes put other matters off to the extent they miss contractual deadlines. The recent decision of the Armed Services Board of Contract Appeals (ASBCA) in Black Bear Construction Company, ASBCA No. 61181 (November 14, 2017) serves as a reminder of the potentially high cost of excessive procrastination.

The matter involved an…

If the Agency Throws You a Lifeline, Grab It!

December 7, 2017

Most contractors are familiar with the Far Part 15 discussions process during which the procuring agency identifies significant weaknesses and deficiencies in the proposals of the offerors in the competitive range. The procedure is intended to help those offerors improve their proposals so that the Government has the best possible options to choose from. In order to take advantage of the…

Short Take: It’s All in a Day’s Work, but Remember the “Day” Is a “Calendar” Day Unless Otherwise Specified

November 30, 2017

When interpreting and performing contracts, it’s important to remember that unless the contract language specifies otherwise, the FAR provides a default definition of the word “day” to mean a “calendar day.” The contractor in Family Entertainment Services, Inc., ASBCA No. 61157, learned this lesson when the Government deducted $81,692.34 from the Contract amount in a firm-fixed price contract to…

Happy Thanksgiving!

November 17, 2017

The Jackson Kelly Government Contracts Monitor wishes you and yours a very Happy Thanksgiving. We’ll be taking a break next week and hope you’ll be join us in taking time with friends and family to remember all that we have to be thankful for.

The Government Contracts Monitor will return again the week of November 27.

GAO Bid Protests – FY17 Protest Statistics (Overall Effectiveness at 47%; Sustains at 17%) and a Look Ahead

November 16, 2017

The Government Accountability Office (GAO) this week issued its Annual Report to Congress on bid protests during Fiscal Year 2017 (FY17; 10/1/16-9/30/17). The total number of bid protests filed (including supplemental protests, cost claims & reconsideration requests) declined (for the first time in three years) by 7% (2,596 vs. 2,789 protests in FY16).  GAO closed 2,672 protests during the year,…