Government Contracting Civil Procedure

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Warning Shot Fired (Finally) at Improper DCAA Cost Disallowance Basis

For a number of years, contractors have been required to expend substantial sums challenging baseless legal theories initiated by the Defense Contract Audit Agency (DCAA) and rubber-stamped by the Defense Contract Management...more

The Government Knowledge Defense to the False Claims Act after Universal Health Services

As recited in seemingly every brief and opinion involving the statute, the False Claims Act traces its history to the Civil War and efforts to deter and punish fraud on the Lincoln administration. The lure of treble damages,...more

Insurers’ Suit Against Government for Affordable Care Act Payments May Proceed; If Successful, Insurers Entitled to Billions from...

In a closely watched case, the Court of Federal Claims last week refused to dismiss a health insurer’s putative class action against the Federal government for payments authorized under the Affordable Care Act. The Court’s...more

2016 Protest Roundup

In addition to our regular recap of key protest decisions by the Government Accountability Office (GAO) and Court of Federal Claims this month, we have compiled a year-end recap of key bid protest decisions from 2016. The...more

Protesters’ Paradise at the GAO? Understanding the Rapid Rise in the GAO’s FY 2016 Bid Protest Sustain Rate

As a bid protest lawyer, one of the most frequent questions I hear from companies considering whether to pull the trigger and file a pre- or post-award bid protest is “Can we win?” My response – regardless of the meritorious...more

Seventh Circuit Applies Escobar Standard to Once Again Reject False Claims Act Liability Based on Implied False Certification...

On October 24, 2016, the Seventh Circuit applied the standard announced by the Supreme Court in United Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016), for False Claims Act (“FCA”) liability...more

First Circuit Rejects Whistleblower’s Fraud on the FDA FCA Theory

On December 23, 2016, the First Circuit held that a relator under the federal False Claims Act (“FCA”) failed to plausibly plead that defendant medical device manufacturers caused the submission of false claims for...more

Differing GAO Task Order Protest Thresholds

On December 23, 2017, President Obama signed the 2017 National Defense Authorization Act (NDAA), which contains changes to the Government Accountability Office’s (GAO) jurisdiction over contractor bid protests of task order...more

First Circuit Rejects Fraud-on-the-FDA Theory of FCA Liability

Affirming an earlier order handed down by the United States District Court for the District of Massachusetts, the First Circuit recently denied Plaintiff D’Agostino leave to amend his complaint, finding the proposed claims...more

Seventh Circuit Allows FCA Claim Based on Inferences of Fraud to Proceed; Claims Based Only on Personal Opinions Dismissed

In United States ex rel. Presser v. Acacia Mental Health Clinic, LLC, 836 F.3d 770 (7th Cir. 2016), the Seventh Circuit addressed Rule 9(b)’s application to a False Claims Act (“FCA”) complaint, elaborating on when it...more

Healthcare Law Update: December 2016

Prompt Payment Discounts Not an Anti-Kickback Statute Violation - In United States of Am. et al. ex rel. Ruscher v. Omnicare, No. 15-20629, 2016 WL 6407128 (5th Cir. Oct. 28, 2016), the court of appeals affirmed summary...more

Supreme Court Rejects Dismissal Requirement for FCA Seal Violations

In State Farm Fire & Casualty Co. v. United States ex rel. Rigsby, the United States Supreme Court rejected State Farm’s argument that a relator’s violation of the automatic seal in a False Claims Act (“FCA”) case mandates...more

Jury Verdict in Declined Civil FCA Action Need Not Bar Criminal Prosecution for Same Conduct

The qui tam provisions of the False Claims Act allow private citizens to file FCA claims on behalf of the government. The government may elect to intervene in the action—or it may not. The United States District Court for...more

Task and Delivery Order Bid Protests Are Back in Business at the GAO

New Legislation Reinstates GAO’s Civilian Task Order Protest Jurisdiction, but the 2017 NDAA Will Up the Threshold for Non-Civilian Agency Task Order Procurements...more

Jurisdictional Changes for Bid Protests

Two new statutes—the 2017 National Defense Authorization Act (NDAA) and the GAO Civilian Task and Delivery Order Protest Authority Act of 2016 (Civilian Task Order Act)—greatly impact the ability of government contractors to...more

UPDATE: Civilian Task Order Protest Jurisdiction Already Restored, DoD Task Order Threshold Likely to Increase Soon

As we reported on December 14, 2016, on December 8, the Senate passed the National Defense Authorization Act (NDAA) of 2017, which calls for changes to the Government Accountability Office’s (GAO) jurisdiction over civilian...more

Government Contractor Defense Applies to Commercial Product Supplier

A California appellate court recently affirmed a decision granting summary judgment in favor of an asbestos supplier under the government contractor defense. Kase v. Metaclad Insulation Corp., 2016 Cal. App. LEXIS 1025 (Cal....more

UPDATE: GAO Jurisdiction over Task Order Protests Valued at More Than $10 Million Restored

On December 14, 2016, President Obama signed H.R. 5995 into law, removing the sunset provision from 41 U.S.C. § 4106 for jurisdiction over task order protests valued at more than $10 million. The GAO Civilian Task and...more

Supreme Court Rules on False Claims Act’s Seal Requirement

In the midst of a False Claims Act (FCA) case, the relators have blatantly violated the FCA’s seal provision. Surely this will lead to dismissal, right? Wrong. On Tuesday, December 6, the Supreme Court unanimously...more

Universities Are Prime Targets for False Claims Act Liability

Colleges and universities receive billions of dollars in federal funds, whether through research grants or student financial aid, or even by billing Medicare or Medicaid for services rendered at academic medical centers. As a...more

Legislation Restores GAO Civilian Task Order Protest Jurisdiction (for Good this Time?), But Introduces New Differences Between...

On December 8, 2016, the Senate passed the National Defense Authorization Act (NDAA) of 2017 previously passed by the House, and the legislation is pending President Obama’s signature. Once signed, Section 835 of the NDAA...more

SCOTUS: Dismissal Not Mandatory for False Claims Act Seal Violation

Rigsby places discretion in the hands of district courts as to whether and how to sanction relators who violate the seal requirement in False Claims Act cases. On December 6, 2016, only a month after oral argument, the...more

U.S. Supreme Court Rules That Seal Violations Do Not Require Dismissal of Qui Tam False Claims Act Suits

On Tuesday, the Supreme Court issued an anxiously anticipated False Claims Act (“FCA”) decision in State Farm Fire & Casualty Co. v. United States ex rel. Rigsby, holding that a violation of the statute’s seal requirement...more

Supreme Court Rejects Mandatory Dismissal for an FCA Seal Breach

The Supreme Court held that a relator’s breach of the seal in a qui tam case does not require mandatory dismissal of the complaint, but the Court declined to articulate what factors are appropriate to consider in determining...more

Eighth Circuit Considers Materiality Under the FCA Following the Supreme Court’s Escobar Decision

On October 19, 2016, the Eighth Circuit issued one of the first post-Escobar opinions addressing materiality under the False Claims Act (“FCA”). In United States ex rel. Miller v. Weston Educational, Inc, No. 14-1760, 2016 WL...more

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