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The term “bid protest” typically calls to mind challenges to an agency’s award of a contract.  But two recent GAO sustain decisions—Wilson 5 Service Company, Inc., B-422670, Sept. 25, 2024, 2024 CPD ¶ 230 and MAXIMUS Federal Services, Inc., B-422676, Sept. 16, 2024, 2024 CPD ¶ 222—highlight another impactful tool for protecting a contractor’s ability to compete fairly: pre-award challenges to ambiguous or unreasonably restrictive solicitation terms.

Continue Reading Bid Protest: Unreasonable and Ambiguous Solicitation Terms Sink Procurements
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On September 24, 2024, the Office of Management and Budget (OMB) released Memorandum M-24-18Advancing the Responsible Acquisition of Artificial Intelligence in Government (Memo).  The 36-page Memo builds on OMB’s March 2024 guidance governing federal agencies’ use of AI, Memorandum M-24-10, which we reported on here.  The Memo addresses requirements and guidance for agencies acquiring AI systems and services, focusing on three strategic goals: (i) ensuring collaboration across the federal government; (ii) managing AI risks and performance; and (iii) promoting a competitive AI market.

Continue Reading OMB Releases Guidance to Advance Federal AI Acquisition
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In Chugach Federal Solutions, Inc., ASBCA Nos. 62712, et al., the Armed Services Board of Contract Appeals held that a contractor could recover its costs for having to quarantine personnel in accordance with government-imposed COVID safety requirements, because the underlying contract contemplated that the contractor would be compensated for complying with any changes to health and safety requirements.

Continue Reading So You’re Telling Me There’s a Chance:Contractor Recovers COVID-Related Quarantine Costs

The following is an installment in Crowell & Moring’s Bid Protest Sustain of the Month Series.  In this series, Crowell’s Government Contracts Practice will keep you up to date with a summary of the most notable bid protest sustain decision each month.  Below, Crowell Consultant Cherie Owen discusses Wilson 5 Service Company, Inc., B-422670, September 25, 2024, 2024 CPD ¶ 230, which provides helpful insights regarding protests challenging the terms of a solicitation.

Continue Reading September 2024 Bid Protest Sustain of the Month
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Recently, there has been a significant increase in scams targeting users of the System for Award Management (SAM.gov).  Active SAM registrations are required for federal government contractors, including to receive contracts and payments.  The non-public portions of these registrations include bank account information, tax information, and other sensitive information about a company.  Recent phishing scams and efforts to gain access to registrations indicate sophisticated actors are attempting to manipulate SAM registrations, possibly for access to payments from the government, among other reasons.  Company SAM registration Administrators should protect the company’s SAM registration from unauthorized access to the greatest extent possible.

Continue Reading SAM Scams: Protect Your Company
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As Crowell covered in a recent alert, the Department of Defense (DoD) on October 11, 2024 released a final rule (the “Final Program Rule”) formalizing the requirements, assessment processes, and related governance for its Cyber Maturity Model Certification Program (CMMC).

Continue Reading CMMC Final Rule Includes M&A Trigger for New Assessment
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Judge Kathryn Kimball Mizelle of the District Court for the Middle District of Florida recently declared the False Claims Act qui tam provisions unconstitutional in U.S. ex rel. Zafirov v. Fla. Med. Assocs., LLC, — F.Supp.3d –, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024), turning up the heat on a simmering constitutional fight that is increasingly likely to reach the Supreme Court in the next few years. Judge Mizelle’s decision was the first to strike down the FCA qui tam provisions, but not the first to consider the issue. Arguments challenging the constitutionality of the qui tam provisions proliferated after Justice Thomas indicated some doubt about the qui tam device in his dissent in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). But every other judge to consider the issue has upheld the constitutionality of the qui tam provisions.

How did Judge Mizelle reach this bold new conclusion? What does this mean for relators, defendants, and government attorneys currently engaged in FCA litigation? And what does it mean for the future of qui tam suits? Crowell attorneys analyze the Zafirov decision and comment on its implications for FCA practice in a “Feature Comment” published in The Government Contractor.

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On October 11, 2024, the Department of Defense (DoD) released a final rule (the “Final Program Rule”) formalizing the requirements, assessment processes, and related governance for its Cyber Maturity Model Certification Program (CMMC).[1] 

Continue Reading Cybersecurity Matured:  DoD Finalizes Cybersecurity Maturity Model Certification (CMMC) Program
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Compliance, TINA, Disaster Response Contracting

This week’s episode covers DOJ’s update to its Evaluation of Corporate Compliance Programs guidance, a proposed rule to amend the DFARS to implement updates to the Truthful Cost or Pricing Data statute (also known as the Truth in Negotiations Act or TINA), and reminders about common considerations for companies supporting disaster response efforts, and is hosted by Peter Eyre and Yuan Zhou. Crowell & Moring’s “Fastest 5 Minutes” is a biweekly podcast that provides a brief summary of significant government contracts legal and regulatory developments that no government contracts lawyer or executive should be without.

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The federal government’s response to Hurricanes Helene and Milton will increase its reliance upon government contractor support to perform critical tasks in the coming months.  The Federal Emergency Management Agency and other federal, state, and local agencies charged with disaster response and recovery will look to contractors to provide everything from logistics to housing, construction, and security services.  National disaster contracting provides contractors with immediate opportunities to assist in the recovery effort, but given the time sensitivity, evolving customer needs, and critical nature of the work, contractors must be prepared to: (i) perform under tight deadlines and high scrutiny; (ii) seek clarity with respect to the scope of work they are asked to perform; (iii) properly manage contract and change order documentation; and (iv) maintain contract files for subsequent audits and other inquiries which can take place years after the recovery effort has ended.  One of the most common contract risks associated with disaster response efforts is the inevitable “scope creep” as contractors encounter ever-changing events on the ground, which puts an emphasis on record keeping and timely communications with government customers, to ensure payment for work performed.

In addition, when responding to disasters, agencies typically turn first to regional or local businesses to rapidly support relief efforts.  Contractors, especially small businesses getting involved for the first time, can prepare for these recovery opportunities by making sure they are registered in SAM.gov and added to the Disaster Response Registry.  Additional information on participating in the Disaster Response Registry is available here:  Disaster Response Registry | Acquisition.GOV