Jackson Kelly PLLC

Government Contracts Monitor

Ethics and Compliance

ShortTake: Prosecutorial Eyes On All Qui Tam Actions

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

Suspension & Debarment: Administrative Agreements as Road Maps for Compliance

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…

Short Take: Another Export Violator Behind Bars

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…

Pre-Award Departure of Proposed Project Manager: Is it a False Statement Not to Amend Your Proposal?

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…

ShortTake: Bold Blatant Bribery

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…

Short Take: Whistleblower Disclosures from Contractor Employees

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…

Agency Did Not Properly Consider Awardee\'s Access to Inside Information

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…

New Year’s Resolutions – Reassess Your Size Status, Update Your DSBS and SAM Listings and Check Your Past Performance Ratings

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…

Big Changes on the Horizon for ZPIC Contractors

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

DCAA Wants Your Internal Audit Reports – But Why?

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…

If You See Smoke, Check for Fire

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…

 

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