Justia Government Contracts Opinion Summaries

Indian Harbor sought reimbursement under the National Defense Authorization Act of 1993, 106 Stat. 2315, 2371; 107 Stat. 1547, 1745 for environmental cleanup costs associated with the development of the former Marine Corps Air Station Tustin military base in southern California. The Court of Federal Claims determined that Indian Harbor failed to identify a “claim for personal injury or property” that triggered the government’s duty to indemnify and dismissed. The Federal Circuit reversed, relying on the purposes of the Act, to encourage cleanup and redevelopment of former military installations. View "Indian Harbor Ins. v. United States" on Justia Law

In 2004 Taylor, an employee of the IRS, began applying for promotions and transfers, and was rejected until she received a promotion in 2006. In 2004, after being denied a promotion, Taylor filed her first discrimination complaint and was assigned to work in a unit supervised by Shields. While working in this unit, Taylor alleges that Shields took several retaliatory actions against Taylor, including written reprimands, a three-day suspension without pay, and providing negative references for Taylor to prospective employers. Based on these alleged actions, Taylor filed additional complaints for retaliation. In 2005, the IRS and Taylor entered into a settlement agreement. Taylor subsequently alleged noncompliance by the IRS. In 2006 and 2008, the agency issued decisions concluding that although the IRS had breached the agreement, it was currently in compliance. Taylor did not appeal either decision, but filed a complaint alleging retaliation under 42 U.S.C. 2000e-16(a) and breach-of-settlement-agreement. The district court dismissed. The Sixth Circuit affirmed with respect to the breach claim, holding that Congress has not waived sovereign immunity with respect to such claims, but reversed with respect to retaliation.View "Taylor v. Geithner" on Justia Law

Erie County filed a purported class action on behalf of itself and other counties in northern Ohio, claiming that Morton and Cargill conspired to fix the price of rock salt in northern Ohio by geographically dividing the market and excluding competition, in violation of Ohio’s Valentine Act (Ohio Rev. Code 1331.01-1331.15), analogous to federal antitrust statutes, including the Sherman Act (15 U.S.C. 1-7). The district court dismissed, finding that the alleged facts were just as consistent with lawful parallel conduct as with a conspiracy. The Sixth Circuit affirmed. The alleged “failure to compete” indicates no more than a natural and independent desire to avoid a turf war and preserve profits guaranteed by regional dominance. Erie County’s concession that it was not bound by the “Buy Ohio” law defeated its claim of conspiracy evidenced by submission of sham bids. View "Erie Cnty. v. Morton Salt Co." on Justia Law

The Department of Defense issued a solicitation seeking offers for a multiple award, indefinite delivery/indefinite quantity contract for information technology services. The agency described the services as “Net-Centric Integrated Enterprise Information Technology Services,” including help desk, server, network, and applications support services. The solicitation instructed bidders to submit separate bids for the Basic Contract, Task Order 1, and Task Order 2. Every bidder, including Comint, submitted separate bids. The Department then limited the initial award to the Basic Contract and amended the solicitation. Comint acknowledged the amendment. The Source Selection Evaluation Board evaluated each proposal according to factors in the solicitation, the most important of which was “Quality/Capability.” The Board rated Comint’s proposal as “marginal,” concluding that Comint had a “moderate to high associated risk of unsuccessful performance.” The district court rejected Comint’s challenge of the award to another bidder; Comint lacked standing to challenge the solicitation or award because the agency had not erred in rejecting Comint’s bid on technical grounds. The Federal Circuit affirmed, holding that Comint failed to preserve its right to challenge the solicitation by failing to raise objections before award and that Comint has not demonstrated standing to protest the agency’s failure to award it a contract. View "Comint Sys. Corp. v. United States" on Justia Law

Ruppel sued CBS in Illinois alleging CBS’s predecessor, Westinghouse, caused the mesothelioma from which he suffers. Westinghouse had included asbestos in the turbines it supplied to the U.S. Navy, and Ruppel was allegedly exposed to it during his Naval service and later when he worked on an aircraft carrier as a civilian. CBS removed the case under the federal officer removal statute, which permits removal of certain suits where a defendant that acted under a federal officer has a colorable federal defense, 28 U.S.C. 1442(a)(1). Ruppel moved to remand and, without allowing response, the district court granted the motion. The district court concluded Ruppel only sued CBS for failing to warn about the dangers of asbestos for which there is no federal defense. The Seventh Circuit reversed. CBS’s relationship with Ruppel arises solely out of CBS’s duties to the Navy. It also has a colorable argument for the government contractor defense, which immunizes government contractors when they supply products with specifications approved by the government. View "Ruppel v. CBS Corp." on Justia Law

ASNA is an inter-tribal consortium of federally recognized tribes situated in Alaska. In 1996, 1997, and 1998, ASNA contracted with the Department of Health and Human Services, under the Indian Self-Determination and Education Assistance Act to operate a hospital. ISDA requires the government to pay costs reasonably incurred in managing the programs, 25 U.S.C. 450j-1. There have been three previous class actions concerning payments. One resulted in settlement; in two the courts denied class certification for failure to exhaust administrative remedies because claims had not first been submitted to the contracting officer. ANSA brought its claim, arguing that it was a putative class member in those suits even though it did not individually present claims to the contracting officer within the Contract Disputes Act six-year limitations period and that the limitations period was tolled while those cases were pending. The Civilian Board of Contract Appeals dismissed. The Federal Circuit reversed. The class actions involved similar issues and parties, and put the government on notice of the general nature and legal theory underlying ASNA’s claims. ASNA monitored the legal landscape, took action as appropriate, and reasonably relied upon controlling authority, holding that it did not need to exhaust administrative remedies to be a class member.View "Arctic Slope Native Assoc., Ltd. v. Sebelius" on Justia Law

Taylor owned a convenience store. In 2008, the store received authorization to redeem benefits through the Supplemental Nutrition Assistance Program, a federally funded program providing nutritional assistance to needy individuals. In 2010-2011, the USDA conducted an undercover operation. Taylor allowed undercover police officers and confidential informants working under USDA special agents to redeem SNAP benefits for cash that Taylor knew would be used to purchase illegal drugs. Taylor once exchanged a firearm for SNAP benefits. Taylor pled guilty to conspiracy to defraud the U.S., SNAP fraud, drug distribution, and being a felon in possession of a firearm. Based on the firearm conviction and Taylor’s criminal history, the probation officer recommended an enhanced sentence under the Armed Career Criminal Act, 18 U.S.C. 924(e), resulting in a Guidelines range of 188 to 235 months. The district court sentenced Taylor to 188 months. Graves, a friend of Taylor’s, worked in the store and would stand outside the store and either sell drugs to people who redeemed benefits for cash or tell them where to find drugs. Graves also sold an informant a firearm and split the proceeds with Taylor’s wife. The district court sentenced Graves to 200 months. The Sixth Circuit affirmed. View "United States v. Taylor" on Justia Law

In 1993, Bowers and the FAA entered into a lease for office and warehouse space. The FAA agreed to monthly payments, $19,509, beginning in January 1994, payable each month “in arrears.” The parties modified the lease eight times until termination on September 30, 2006. In 2008, Bowers filed a claim of $82,203.72 with the contracting officer (41 U.S.C. 7103(a)(1)), for the final month’s rent and property damage. Bowers claimed that because the contract provided for payment “in arrears,” payment made in September, 2006 was for the August rent. The contracting officer held that rent was actually paid in advance, but allowed other, minor, claims. Before the Civilian Board of Contract Appeals, Bowers attempted to establish that the FAA had not paid rent for three months in 1994. CBCA rejected the attempt and Bowers signed a certificate of finality. In 2009 Bowers submitted two more claims: $56,640.78 (plus interest) for assertedly unpaid rent for January, February, and March of 1994 and that the FAA underpaid by $664 every month from October 1, 1998 to October 1, 2006, a total of $64,408.00 (plus interest). The contracting officer denied the claims. The Claims Court held that the CBCA’s final decision precluded the litigation. The Federal Circuit affirmed. View "Bowers Inv. Co, LLC v. United States" on Justia Law

Tasis and his brother ran a sham medical clinic, recruited homeless Medicare recipients who had tested positive for HIV, hepatitis or asthma, paid the “patients” small sums in exchange for their insurance identification, then billed Medicare for infusion therapies that were never provided. During four months in 2006, the Center billed Medicare $2,855,785 and received $827,000 in return. The scheme lasted 15 months, during which Tasis and his collaborators submitted $9,122,159.35 in Medicare claims. An auditor notified the FBI. After an investigation, prosecutors indicted Tasis on fraud and conspiracy claims. Over Tasis’s objection, co-conspirator Martinez testified that she and Tasis had orchestrated a a similar scam in Florida. The court instructed the jury to consider Martinez’s testimony about the Florida conspiracy only as it related to Tasis’s “intent, plan and knowledge.” The jury found Tasis guilty, and the trial judge sentenced him to 78 months in prison and required him to pay $6,079,445.93 in restitution. The Sixth Circuit affirmed, rejecting various challenges to evidentiary rulings. View "United States v. Tasis" on Justia Law

Circle C contracted to construct buildings at the Fort Campbell military base. The agreement included determinations of hourly wages for electrical workers. Circle C has had government contracts for 20 years; its co-owner and a bookkeeper attended training on the prevailing wage requirement for federal government contracts. PT was Circle C’s subcontractor on 98 percent of the electrical work, but did not have a written contract. Circle C provided PT with the wage determination excerpts from its contract, but did not explain the Davis-Bacon Act (40 U.S.C. 3142) prevailing wage requirements nor verify whether PT submitted its own payroll certifications, nor monitor PT’s eight employees’ work on the project, nor take measures to ensure payment of proper wages. One of the PT electricians claimed violation of the federal False Claims Act, 31 U.S.C. 3729(a)(2). The Department of Labor found inaccurate or false payroll certifications. The district court awarded treble damages: $1,661,423.13. The Sixth Circuit affirmed summary judgment in favor of plaintiffs, but remanded for recalculation of the damages. Circle C, an experienced contractor, made false statements, acted in reckless disregard of the truth or falsity of the information, and the false statements were “material” to the government’s decision to make payment.View "Wall v. Circle C Constr., L.L.C." on Justia Law