Category Archives: Government Contract-Related Investigations and the False Claims Act

In the Aftermath of the Granston Memo, the DOJ Addresses (Some of) Grassley’s Concerns

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As previously discussed in a Law360 article by Jeffrey Belkin and Michael Mortorano, the DOJ’s Granston memo, dated January 10, 2018, “advised DOJ attorneys that, in tandem with their decisions to decline intervention in qui tam suits, they should consider proactively seeking dismissal under 31 U.S.C. § 3730(c)(2)(A).” On September 4, 2019, Senator Charles Grassley (R-IA) wrote to Attorney General William Barr expressing his concerns about the DOJ’s implementation of the Granston memo, a topic that we noted Grassley had previewed during Barr’s confirmation hearing. While recognizing [...]Read more

Final FAR Council Rule Expands the Scope of GIDEP Screening and Reporting and Effectively Mandates GIDEP Membership for Covered Contractors

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The FAR Council recently issued a Final Rule on the Reporting of Nonconforming Items to the Government-Industry Data Exchange Program (GIDEP) to address supply chain risks from counterfeit and nonconforming goods. The Rule goes into effect on December 23, 2019. While the Final Rule on its face addresses counterfeit and nonconforming parts, the GIDEP program is potentially more onerous than meets-the-eye. GIDEP is a U.S. Government funded and managed voluntary information exchange program among government and industry participants.  Its members include, among others, dozens of government [...]Read more

DOJ Antitrust “Strike Force” Will Crack Down on Collusive Bidding and Procurement Fraud

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On November 5, 2019, the Department of Justice (DOJ) announced the formation of a new Procurement Collusion Strike Force (PCSF) to prosecute collusive bidding and procurement fraud in government contracting. According to Deputy Attorney General Jeffrey Rosen, the PCSF “will target bid-rigging and other antitrust crimes that can cost American taxpayers billions of dollars each year by undermining the federal government’s processes for purchasing goods and services and for money granted to states and municipalities to undertake large, high-dollar-figure public improvement projects.” The PCSF will [...]Read more

DOJ Affirms Cooperation Principles in Government Contract Fraud Investigations

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Those of us who have had more than a few discussions with the Civil Fraud Section of the Department of Justice (DOJ) over the years about federal procurement and grant fraud have come away with a clear enough understanding of a few basic principles of cooperation. First, while it is cliché to say that the “multiple” on single damages that the DOJ might demand in settlement of a civil False Claims Act (FCA) case varies depending on the circumstances, the general understanding is that if a defendant settles at or before the time the DOJ must file its complaint, then the DOJ may be more willing [...]Read more

Will DOJ’s False Claims Act ‘Voluntary’ Dismissals Accelerate Under Attorney General Barr?

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It has been a few months since the 2015 “Yates Memo” was updated by Deputy Attorney General Rod Rosenstein’s announcement in late November 2018, as reflected by our colleagues in our White Collar Group.  While the principles behind the earlier policy were laudable – objectionable behavior will be deterred better when individual managers are at risk of criminal liability and financial ruin – the revised policy may not have had a sufficient time “in force” to result in actual behavioral modification.  At least from our vantage point of the government contracts industry.  Keep in [...]Read more

Chris Roux in U.S. News–Best Lawyers “Best Law Firms” on the State of American Infrastructure

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Alston & Bird partner Chris Roux had his article, “Building Blocks: Everyone Agrees U.S. Infrastructure Is in Lamentable Shape,” published in the 2019 “Best Law Firms” edition of U.S. News–Best Lawyers.  The article evaluates the current condition of infrastructure in the United States and the extent to which Congress and the Trump administration can and/or will take action to remedy the problems.  Although there were high hopes, Congress has failed to pass major infrastructure legislation.  Roux evaluates the potential impact of public-private partnerships as a possible delivery [...]Read more

DOJ Advocates for Dismissal of False Claims Act Case, Urges SCOTUS Not to Clarify Escobar Materiality Standard

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In an unusual amicus brief, DOJ urged the Supreme Court of the United States not to grant certiorari in Gilead Sciences, Inc. v. United States ex rel. Campie because “continued prosecution of the suit is not in the public interest.”  DOJ argued that, should the case be remanded, it would ultimately seek dismissal itself under 31 U.S.C. § 3730(c)(2)(A). Presciently, Jeff Belkin and Mike Mortorano wrote for Law360 here about seeking DOJ dismissal of False Claims Act cases under that little-used provision, noting that DOJ may be sensitive to “closing off a legal theory of recovery in future [...]Read more

Alston & Bird 2018 GovCon Briefing and CLE: Washington, D.C.

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On October 24, the Government Contracts team at Alston & Bird hosted its inaugural briefing in Washington, D.C. discussing the latest developments and industry updates in the government contracts space.  Presenters included Jeff Belkin, Jeniffer Roberts, Jessica Sharron, Jeremy Silverman, Andy Howard, Mike Mortorano and Katherine Veeder. The topics addressed were a variety of industry developments and key areas that are particularly salient in the current GovCon market.  Jeremy Silverman and Jeniffer Roberts provided a valuable bridge between the GovCon world and the M&A market by [...]Read more

DOJ Crackdown on False Certification for Small Business Set-aside Award

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As discussed in prior blog posts, the DOJ over the last few years has continued to crack down on small-business contracting fraud, including “pass through” and “sham” contracting schemes. This trend has continued, and the DOJ recently cracked down on a subcontractor’s false certification for a government small-business set-aside program. On May 3, 2018, the DOJ announced that MassTech Inc. (MTI) and its CEO and CFO agreed to pay the United States $1.9 million to resolve allegations that MTI falsely certified it was a small business concern in order to obtain a Small Business Innovation [...]Read more

Jeff Belkin Quoted by Law360 on Leaked DOJ FCA Memo

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On January 25, 2018, Jeff Belkin was quoted by Law360 in the article “FCA Memo No Proof of New DOJ Direction on Dismissals,” which covers a recently leaked memo from the U.S. Department of Justice (DOJ) detailing when DOJ attorneys should ask to dismiss “meritless” qui tam False Claims Act cases. The article covers varying viewpoints about what the impact of the memo will be on future FCA cases. Many FCA defense attorneys have reacted positively, some saying that the memo does suggest a change in policy. Others have reservations and remain unconvinced of actual policy changes. In the article, [...]Read more