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Government Contracts Monitor

Burgers at the CBCA – Just in Time for a Summer Picnic!

The Civilian Board of Contract Appeals served up a recent decision “medium rare” for a small business in New Mexico -- in Papa Franks v. Dep’t of Justice, (CBCA 2779), the Board denied relief to Papa Franks, a small burrito and sandwich shop in Albuquerque.  Papa Franks entered into a contract that upon verbal request from the United States Marshal, it would provide meals to federal inmates…

Energy Security for U.S. Military Bases

In April 2012, the Obama Administration set a goal of building green energy capacity on U.S. military bases by 2025 – three gigawatts of solar, wind and geothermal power.  These efforts could require as much as $20B in private funding and will create opportunities for contractors and lenders alike.

Private financing may the only way to fund these kinds of projects.  Why? Because…

A “Spicy” Decision by the CBCA Clarifies the Role of a Contracting Officer

A recent food service industry decision from the Civilian Board of Contract Appeals provides some guidance regarding how a Contracting Officer should deal with potential mistakes in the bid process.

In Red Gold, Inc. v. Dep’t of Agriculture, CBCA 2639 (July 6, 2012), the Board held that a unilateral mistake by the contractor was excusable and awarded $253,608.   In connection with a…

SBA Proposes Changes to Small Business Size Standards for NAICS Sectors 22, “Utilities,” and 23, “Construction.”

The U.S. Small Business Administration (“SBA”) recently issued one Proposed Rule seeking to revise the small business size standards for 9 industries in NAICS Sector 22, “Utilities,” Small Business Size Standards: Utilities, 77 Fed. Reg. 42,441 (July 19, 2012), and another proposing the revision of size standards for 1 industry and 1 sub-industry in NAICS Sector 22,…

Government’s Internal Administrative Procedures Do Not Extend Time Limit for Bringing Claim

As previously reported here, the Court of Federal Claims and the Armed Services Board of Contract Appeals have held that the 6-year statute of limitations for bringing a claim applies equally to both the Government and its contractors.  In Sikorsky Aircraft Corp. v. United States, Nos. 09-844C & 10-741C (Fed. Cl. July 18, 2012), the Court, once again, applied the Contract Disputes Act (CDA)…

Conviction In Chinese Ammunition Case is Upheld on Appeal

On June 27, 2012, the United States Court of Appeals for the Eleventh Circuit affirmed the convictions and four-year prison sentence of Ralph Merrill, an investor in AEY and a munitions dealer based in Miami Beach, Florida.  Merrill was charged with concealing from the government that the millions of rounds of ammunition AEY sold pursuant to a $298 million dollar Army contract were actually…

The Affordable Care Act’s “Hidden” Enforcement Initiatives

With all the media focus on the Affordable Care Act’s (“ACA”) regarding the individual mandate provision and the political impact of the recent Supreme Court ruling upholding the law on the November elections, a significant portion of the law has gone virtually without discussion – the enhanced enforcement tools in the ACA which will impact the health care industry for many years.

The ACA provides…

Update: Government Cannot Suspend Affiliate More than 18 Months without Legal Proceeding

As previously reported here, United States District Court for the Northern District of Alabama heard an important case of first impression regarding the suspension of a subsidiary based on its relationship with a suspended parent company.  The court held that the subsidiary could not be suspended for longer than eighteen months unless the government initiated legal proceedings against the…

“Most Favored” Pricing to the Government Means Just That

On June 26, 2012, New York-based General Services Administration (“GSA”) contractor Ward Diesel Filter Systems agreed to pay $628,000 to resolve False Claims Act lawsuit.  The company, which manufactured filtering systems for diesel engines on fire trucks, allegedly overcharged the government by failing to provide it with “most favored” customer status.

The settlement arose from a lawsuit, …

Recent IG Report Could Lead to Much Stricter Process for SDVOSBs at DOD

Service-disabled, veteran-owned small businesses (SDVOSBs) should not be surprised if the Department of Defense (“DoD”) adopts a robust verification program for SDVOSB contractors similar to that in place at the Department of Veteran Affairs (“VA”).

This Spring, the DoD Inspector General (“IG”) found that DoD had made hundreds of millions of dollars of SDVOSB set-aside and sole-source awards to…

Debarments and Debarment Authority on the Move

Debarment Authority:  Small Businesses Beware

The 2013 National Defense Authorization Act (H.R. 4310), if enacted in its current form, would require agency officials to suspend or debar a contractor for misrepresenting itself as a small business.

 The bill would make the measures mandatory:

Section 1683—Requirement Fraudulent Businesses Be Suspended or Debarred

This section…

 

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