BLOG: Cybersecurity Meets the FCA: What the Chinese Telecom Ban Means for Government Contractors
Government contractors are required to comply with a new set of prohibitions on telecommunications equipment acquired from certain Chinese companies, and they may face False Claims Act liability since the prohibitions require certification that they have not used prohibited products. These prohibitions come from the John S. McCain National Defense Authorization Act for Fiscal Year 2019,* which contains a number of provisions intended to keep U.S. government funds from moving to Chinese government-owned corporations. Section 889 in particular lists companies the Chinese . . . Read More
BLOG: The Big Miss: When Job Misclassification Strikes Hard
Everywhere you look companies are being hit hard with claims of misclassification of workers under labor regulations. So far in August 2019, Department of Labor (DOL) has announced over $2 Million in damages paid to employees, and this doesn’t even include voluntary settlements handled outside of DOL. In fact, General Dynamics was recently hit with a $170,000 settlement regarding claims that the company misclassified call center workers under the Service Contract Act (SCA). To avoid such penalties and to remain legally compliant, . . . Read More
BLOG: Prepare Now to Secure “Controlled Unclassified Information”
Nowadays, many people are familiar with at least some types of protected information, whether in the form of personal health information or government-classified information. But, contractors working with the Department of Defense (“DoD”) must remember to protect another type of information: controlled unclassified information (“CUI”). Failure by government contractors to put processes in place that protect CUI could result in the loss of contracting opportunities or potential False Claims Act-related litigation. For more information about the far-reaching implications of cybersecurity requirements on government . . . Read More
BLOG: GAO Defers to SBA on When Runway Extension Act Applies
Last year, Congress passed—and President Trump signed—the Small Business Runway Extension Act (the “Runway Extension Act” or the “Act”), which changed the time period for determining a company’s size based on average annual receipts from the previous three years to the previous five years. This summer, the Small Business Administration (“SBA”) finally published its proposed rule to amend its regulations and change the period of measurement for receipts-based size calculations from three years to five years. As my colleague Megan Connor noted . . . Read More
BLOG: Why Government Contractors Should Know About the Delaware LLC Division Statute
Relatively often in the government contracting industry a business finds itself in the position where, for one reason or another, it needs to split, fracture, or otherwise reorganize its operations by separating one line of business or division into a separate entity. When prime federal contracts are transferred from one entity to another, it often necessitates a novation agreement with the contracting government agency. Many government contractors discover the novation process to be relatively lengthy and burdensome, with the potential . . . Read More
BLOG: SCOTUS Strengthens Protections for Federal Government Contractors Under FOIA
The Freedom of Information Act (“FOIA” or “the Act”) provides private citizens access to information in the possession of government agencies that is not otherwise publicly available.Unfortunately, an agency’s disclosure can potentially include confidential information of a government contractor, such as proposal content, pricing structures, and other proprietary material. Such disclosures are concerning because publicly disclosed information can be used by competitors to the great detriment of the contractor. Luckily for contractors, FOIA’s power is not unlimited. Indeed, Congress restricted . . . Read More
BLOG: This Project Is Behind Schedule – What Is a Contractor to Do?
Construction projects rarely, if ever, go precisely as planned. One of the most common issues government contractors face is falling behind schedule. A schedule is developed, and then the contractor is confronted with differing site conditions, changes, or a litany of other causes of delay. The contract completion date that seemed easily achievable when performance began may now appear to be impossible to meet. What should a government contractor do to ensure they are compensated and to avoid liquidated damages? The . . . Read More
BLOG: Have the Flood Gates Opened?: Cisco Settles First-Of-Its-Kind Cybersecurity False Claims Act Litigation
On July 31, 2019, a False Claims Act matter pending in the United States District Court for the Western District of New York was unsealed, revealing an $8.6 million settlement that may have far-reaching implications for government contractors. The litigation, United States, et al., ex rel. James Glenn v. Cisco Systems, Inc., was initiated in 2011 on behalf of the federal government and a number of state governments, after a Denmark-based employee of a Cisco affiliate was terminated allegedly for reporting . . . Read More
BLOG: Court of Federal Claims Denies Oracle Protest of JEDI Contract: Is This It For Oracle?
The Department of Defense (“DoD”) first released the Joint Enterprise Defense Infrastructure (“JEDI”) cloud contract on July 26, 2018. One main purpose of the JEDI contract, as listed in the DoD’s published “Determination and Findings,” was to acquire foundational commercial cloud technologies that would “enable war fighters to better execute a mission that is increasingly dependent on the exploitation of information.” With this purpose in mind, the DoD made a controversial decision to move forward with a single-award approach to . . . Read More
BLOG: EEOC Announces New EEO-1 Pay Data Reporting Deadline
September 30, 2019 marks the newly announced deadline for employers who submit annual EEO-1 reports to report employee 2018 pay data to the Equal Employment Opportunity Commission (EEOC). The EEOC revealed the new deadline in a federal court submission last week. UPDATE: Since the original blog on this topic was published, the court issued an order confirming the September 30, 2019 deadline, and requiring the EEOC to collect a second year of data in addition to the 2018 pay information. The EEOC has also . . . Read More