2016 Saw Rise in False Claims Act Actions and Recoveries
By Ambi Biggs The U.S. government and whistleblowers brought an increased number of False Claims Act (“FCA”) cases – as well recovered a larger amount in settlements and judgements – in the fiscal year 2016, as compared to 2015. In 2016, the U.S. Department of Justice recovered $4.7 billion in settlements and judgments, the third highest annual recovery ever for the department in the FCA’s history. Under the FCA, anyone who knowingly presents a false or fraudulent claim to the . . . Read More
Key Issues for Due Diligence of Government Contracts – Part II
By Kimi Murakami In a recent blog post, I highlighted key issues to be analyzed when performing due diligence on a target company that performs government contracts. In addition to the review of government contracts, comprehensive due diligence review of any target company should also include evaluation of five other broad categories relating to general business matters discussed below as part II of key issues to be considered when performing due diligence in M&A transactions for government contractors. 1. . . . Read More
Expert Witness Testimony: Often the Critical Component for a Successful Case
If your company is facing litigation, especially in high-stakes cases, one of the first questions you and your counsel should address is whether the testimony of an expert witness might be helpful, or even essential, to your case. Expert witness testimony comes into play, as stated in Federal Rule of Civil Procedure 702, whenever “the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue.” Whether . . . Read More
Court of Federal Claims Applies a 150 Employee Size Standard to ITVAR Non-Manufacturers
The Court of Federal Claims (“Court”) has issued a bid protest decision which stated, in apparent dicta, that a concern must satisfy a 150-employee standard under the Information Technology Value Added Resellers (“ITVAR”) exception to NAICS code 541519 as opposed to the 500-employee size standard which a concern usually must meet to qualify as a small business under the requirements of the “non-manufacturer rule” (“NMR”). York Telecom Corp. v. United States, No. 15-489 (Fed. Cl. Jan. 11, 2017). According to an SBA . . . Read More
Key Issues for Due Diligence of Government Contracts – Part I
By Kimi Murakami Comprehensive due diligence review of any target company is imperative when determining whether to buy another company. Layer on the fact that the target company has government contracts then several unique issues must also be critically evaluated when performing due diligence. Failure to do so could result in a significant loss in value of the target – and its contracts – after the acquisition has closed. What follows is a list of certain key issues that should . . . Read More
It’s a New Year, Are You Still a Small Business?
By Michelle Litteken It is a new year, and this is the perfect time for a small business to consider whether it still qualifies as a small business. We recommend that small businesses assess their size at least once a year. Because eligibility under a revenue-based size standard is based on a company’s average revenues from the most recently completed three fiscal years, and those revenues generally establish a company’s size for the entire upcoming year, the beginning of a . . . Read More
Three Big Reasons to Incorporate in America’s Second Smallest State: Delaware
By Dana Livne When our clients decide to launch a business, they often ask us about the incorporation process. Business owners incorporate their business primarily to limit their personal liability for business debts and obligations. Choosing where to incorporate is an important decision, because the state your company calls home will continue to influence a number of aspects of your company’s lifecycle. Over 50 percent of the United States’ companies choose to incorporate in Delaware, even if they do not . . . Read More
Fair Opportunity Complaints on Task and Delivery Orders
Last week, the General Services Administration (“GSA”) issued a final rule amending the General Services Administration Acquisition Regulation (“GSAR”) to clarify that the ordering-agency task and delivery order ombudsman has jurisdiction and responsibility to review and resolve fair opportunity complaints on task and delivery orders placed against GSA multiple-award contracts (“MACs”). The final rule also requires the ordering agency to include contact information for their task and delivery order ombudsman when placing task or delivery orders against MACs. In addition, . . . Read More
FAR’s Signature Requirements Strictly Enforced
Though we live in the electronic age, the pen’s power endures in the government contracts world—at least when it comes to signatures for certified claims. The Armed Services Board of Contract Appeals (“ASBCA”) recently held that it could not hear a contractor’s appeal under the Contract Disputes Act (“CDA”) for some of its claims worth over $100,000 because the certified claims that the contractor submitted contained typewritten names on the signature lines. Instead of putting pen to paper or affixing . . . Read More
Supreme Court Agrees to Hear Cases Attacking Arbitration Agreements With Class Action Waivers
On Friday, January 13, 2017, the Supreme Court agreed to consider arguments over whether employer arbitration policies that prohibit employees from filing class or collective actions are violative of the National Labor Relations Act. Justices granted cert to three petitions – in National Labor Relations Board v. Murphy Oil USA, Ernst & Young LLP v. Morris, and Epic Systems v. Lewis – each dealing with arbitration agreements requiring individual arbitration to resolve employer-employee disputes. In recent years employers have used . . . Read More