Tag Archives: U.S. Department of Defense (DOD)

GAO Report on Government Contracting Finds Overall Decrease from 2011-2015 and Most Obligations on Service Contracts

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Every year, billions of dollars in products and services are needed to keep running the U.S. federal government’s 18 cabinet-level departments and nearly 100 other independent agencies. In March 2017, the Government Accountability Office (GAO) released results of its one-year audit of the government’s contracts between fiscal years 2011 and 2015 (including its fixed price, cost-reimbursement, and time-and-materials/labor hour contracts). Overall, GAO’s report shows a 24 percent decrease in government-wide contracting in FY 2015 from FY 2011 levels (a drop of approximately $438 billion), with [...]Read more

Is the False Claims Act Becoming a Catch-All Penalty for Any and Every Contractual Breach?

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A recent Department of Justice (DOJ) settlement announcement suggests that the government intends to continue to use the False Claims Act (FCA), rather than more traditional breach of contract or tort claims or regulatory authority, to administer its contracts. On March 7, 2016, the DOJ announced its $3 million settlement with ArmorSource LLC to resolve FCA allegations against the company. ArmorSource contracted with the U.S. Army in 2006 to provide ballistic helmets for combat. In 2010, the Army recalled the helmets after rounds of failed ballistic safety tests. The government alleged that from [...]Read more

Women-Owned Small Businesses and Sole Source Contracts

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President Obama’s administration has made it a priority to meet the Small Business Administration’s (SBA) prime and subcontracting goals, which include metrics relating to the percentage of government contracts awarded to small businesses, women-owned small businesses (WOSB), small disadvantaged businesses, service disabled veteran-owned small businesses, and historically underutilized business zones. Although in fiscal years 2013 and 2014 government agencies met or exceeded their prime contracting goals for small businesses in general, they did not achieve their goals for WOSBs. One way to [...]Read more

A Summary of the Department of Justice’s 2015 False Claims Act Review

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The False Claims Act (FCA) again proved itself to be the government’s primary tool to combat procurement fraud. According to the Department of Justice, in 2015 alone, the government recovered more than $3.5 billion from FCA settlements and judgments for the fourth year in a row, bringing the total recovery since January 2009 to $26.4 billion. Of the $3.5 billion recovered last year, roughly $1.1 billion came from settlements and judgments in cases alleging false claims for payment under government contracts, raising the total recovery for government contracts and procurement fraud settlements [...]Read more

Proposed Rule Requires Prime Contractor to Report Late or Reduced Payments to Small Business Subcontractors

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On January 20, 2016, the Department of Defense, General Services Administration, and NASA issued a proposed rule to amend the FAR and implement a section of the Small Business Jobs Act of 2010. This proposed rule, which will implement Section 1334 of the Small Business Jobs Act of 2010 and the Small Business Administration’s (SBA) implementation of Section 1334, requires that, among other things, a prime contractor (1) notify the contracting officer, in writing, if the contractor makes a reduced or untimely payment to a small business subcontractor; and (2) disclose the reasons for the reduced [...]Read more