Justia Government Contracts Opinion Summaries

Watkins, an African-American, worked for the school district, overseeing security systems. Fultz supervised Watkins and, relying on Watkins’s advice, Fultz awarded Vision a $182,000 annual contract for service of security cameras. Vision’s president, Newsome, testified that Watkins called her and talked about a “finder’s fee.. Newsome went to Cleveland for a customer visit. She e-mailed Watkins and he replied: “Absolutely$.” Newsome believed that Watkins expected her to pay him at their meeting. Newsome notified Fultz. At the meeting, Watkins requested “an envelope.” After Fultz contacted police, the FBI recorded meetings at which Newsome gave Watkins $5,000 and $2,000. A white jury convicted on two counts of attempted extortion “under color of official right” (Hobbs Act, 18 U.S.C. 1951), and one count of bribery in a federally funded program, 18 U.S.C. 666(a)(1)(B). The court determined a total offense level of 22, applying a two-level enhancement for obstruction of justice, another two-level enhancement for bribes exceeding $5,000, and a four-level enhancement for high level of authority, plus an upward variance of 21 months under 18 U.S.C. 3553(a), and sentenced Watkins to six years’ incarceration. The Sixth Circuit affirmed, rejecting challenges to jury instructions, sufficiency of the evidence, the jury’s racial composition, and the reasonableness of the sentence.View "United States v. Watkins" on Justia Law

Jewish Home of Eastern Pennsylvania (JHEP) provides nursing care to Medicare beneficiaries and is required to comply with the mandatory health and safety requirements for participation. JHEP must submit to random surveys conducted by state departments of health. In 2005, the Pennsylvania Department of Health conducted a survey that concluded that JHEP had eight regulatory deficiencies, including violations of 42 C.F.R. 483.25(h)(2), which requires a facility to ensure that each resident receives adequate supervision and assistance with devices to prevent accidents. Based on those deficiencies and those found in a 2006 survey, the Center for Medicare and Medicaid Services imposed fines totaling $17,150 and $12,800. JHEP claimed that the allegations of noncompliance were based on the inadmissible disclosure of privileged‖ quality assurance records and that the monetary penalties violated its right to equal protection because they were the product of selective enforcement based on race and religion. An ALJ upheld the fines against JHEP. The Third Circuit denied a petition for review. View "Jewish Home of E. PA v. Centers for Medicare and Medicaid Servs." on Justia Law

In August 2008 Ellington accepted the position of Deputy Clerk of the City Council of East Cleveland. The City Council wanted him, but then-Mayor, Brewer, stood in the way. After resolution of an approximately three-month-long standoff between the sides, Ellington began receiving regular paychecks and compensation for wages unpaid since he had begun performing services. Ellington sued, claiming that failure to issue him paychecks between August 2008 and November 2008 violated the minimum wage and overtime provisions of the Fair Labor Standards Act, 29 U.S.C. 201–219, article II, section 34a of the Ohio Constitution; and the Ohio Minimum Fair Wage Standards Act, Ohio Rev. Code 4111.01–.99. The district court concluded that Ellington, as an employee of the City Council, was subject to the “legislative employee” exclusions to the federal and state minimum wage and overtime provisions and granted summary judgment in favor of defendants. The Sixth Circuit affirmed. To conclude that Ellington, who has been found to be an employee of a legislative body, is covered by the FLSA because, as Deputy Clerk of Council, he is also part of the City of East Cleveland’s workforce would effectively excise the FLSA’s “legislative employee” exclusion. View "Ellington v. City of East Cleveland" on Justia Law

Plaintiff brought suit under the qui tam provisions of the False Claims Act (FCA) against Lockheed Martin Corporation, alleging that Lockheed defrauded the United States Air Force under a contract for the Range Standardization and Automation IIA program concerning software and hardware used to support space launch operations at Vandenberg Air Force Base and Cape Kennedy. Hooper filed his suit in the Maryland district court, which transferred the suit to the central district of California on forum non conveniens grounds. The district court granted summary judgment in favor of Lockheed on all grounds. The Ninth Circuit Court of Appeals (1) affirmed the district court's evidentiary rulings and conclusion that Hooper failed to establish his claims of fraudulent use of the software and defective testing procedures because there was no genuine issue of material fact as to whether Lockheed "knowingly" submitted a false claim; and (2) reversed the district court's dismissal of (i) Hooper's wrongful discharge claim as barred by California's two-year statute of limitations, holding that Maryland's three-year statute of limitations applied here, and (ii) Hooper's claim that Lockheed violated the FCA by knowingly underbidding the contract. View "Hooper v. Lockheed Martin Corp." on Justia Law

DGR, seeking an Air Force contract, filed a formal agency-level protest with respect to bid procedures, which the Air Force denied, referencing a DOJ memorandum and a memorandum from the Office of Management and Budget. Pursuant to established appeal procedures, DGR next filed its protest with the GAO, which sustained the appeal despite the contrary Department of Justice and OMB directives. The Air Force was told to rebid the contract consistent with the GAO reading of the Act. The Air Force declined to comply. DGR filed suit, prevailed, and was awarded attorneys’ fees and costs under the Equal Access to Justice Act, 28 U.S.C. § 2412. The Court of Federal Claims determined that the government’s position in the underlying bid protest was not substantially justified. The Federal Circuit reversed. Given the then-existing disagreement among all three branches of the federal government over the law applicable to this bid protest, the Claims Court erred in finding that the government’s position was not substantially justified. View "DGR Assocs., Inc. v. United States" on Justia Law

In 1978, Hages acquired a ranch in Nevada occupying approximately 7,000 acres of private land and approximately 752,000 acres of federal lands under grazing permits. Their predecessors had acquired water rights now located on federal lands, 43 U.S.C. 661. Hages had disputes with the government concerning release of non-indigenous elk onto federal land for which Hages had grazing permits, unauthorized grazing by Hages’ cattle, and fence and ditch maintenance. After a series of incidents, in 1991, Hages filed suit alleging takings under 43 U.S.C. 1752(g), and breach of contract. After almost 20 years, the Claims Court awarded compensation for regulatory taking of water rights; physical taking of water rights; and range improvements. The court awarded pre-judgment interest for the takings, but not for the range improvements. The Federal Circuit vacated in part. The regulatory takings claim and 43 U.S.C. 1752 claim are not ripe. To the extent the claim for physical taking relies on fences constructed 1981-1982, it is untimely. To the extent the physical takings claim relies on fences constructed 1988-1990, there is no evidence that water was taken that Hages could have put to beneficial use. Hages are not entitled to pre-judgment interest for range improvements because Hages failed to identify a cognizable property interest. View "Hage v. United States" on Justia Law

In 2008, Rocha was appointed to an excepted service position at the State Department. By letter (July, 2010), the Department informed Rocha that his appointment would soon expire and that the agency would not convert his appointment into a career or career-conditional position. An administrative judge concluded that the board had no jurisdiction over Rocha’s appeal because he was serving under an excepted service appointment in the Federal Career Intern Program. Rocha was informed by the administrative judge that the decision would become final on December 15, 2010. The initial decision was served upon Rocha by email; he had consented to electronic filing. On June 3, 2011, Rocha filed a petition with the board, which informed Rocha that his petition was untimely and that it would consider the merits only if he established good cause for untimely filing. In response, Rocha asserted that he never received notification that his case had been dismissed. On December 22, the board dismissed, noting that its regulations require an e-filer to monitor case activity at e-Appeal Online to ensure receipt of all documents. Rocha presented no evidence of circumstances beyond his control that affected his ability to comply with time limits. The Federal Circuit affirmed. View "Rocha v. Merit Sys. Protection Bd." on Justia Law

In this appeal, the Ninth Circuit Court of Appeals addressed whether the renewal of forty-one water supply contracts by the United States Bureau of Reclamation violated section 7(a)(2) of the Endangered Species Act (ESA) and illegally threatened the existence of the delta smelt. The contracts at issue fell into two groups: (1) users who obtained water from the Delta-Mendota Canal (DMC contracts), and (2) parties who claimed to hold water rights senior to those held by the U.S. Bureau of Reclamation with regard to a Central Valley Project and who previously entered into settlement contracts with the Bureau (settlement contractors). The district court granted summary judgment for Defendants, finding that Plaintiffs lacked standing to challenge the DMC contracts and that Plaintiffs' claims against the settlement contractors failed because the contracts were not discretionary and were thus exempted from section 7(a)(2) compliance. The Ninth Circuit Court of Appeals affirmed, holding that the district court properly granted summary judgment for Defendants, finding that Plaintiffs lacked standing with regard to the contracts and that section 7(a)(2) of the ESA did not apply to the settlement contracts. View "Natural Res. Defense Council v. Salazar" on Justia Law

Kansas power companies suffered damages due to the government’s partial breach of the Standard Contract for Disposal of Spent Nuclear Fuel And/Or High-Level Radioactive Waste, authorized by the Nuclear Waste Policy Act of 1982, 42 U.S.C. 10101–10270. The Court of Federal Claims conducted a nine-day trial and awarded $10,632,454.83. The Federal Circuit affirmed in part. In determining the amount of damages, thel court correctly did not award damages for cost of capital and for the costs associated with researching alternative storage options for spent nuclear fuel and high level radioactive waste. The court also appropriately reduced the companies’ damages by the value of the benefit they received as a result of their mitigation activities. However, the court erred by not accepting the companies’ reasonable method for calculating overhead costs. View "KS Gas & Elec. Co. v. United States" on Justia Law

When Defendant Ralph Merrill sold millions of rounds of ammunition to the United States Army, he concealed that the ammunition was manufactured by a Communist Chinese military company because his contract with the Army prohibited the delivery of that kind of ammunition. Defendant had the ammunition repackaged which made it unsafe for later use. Defendant was convicted for conspiracy to commit false statements, major fraud, and wire fraud against the United States and for major fraud and wire fraud. On appeal, Defendant argued that the district court misinterpreted the regulation that prohibited the Department of Defense from acquiring munitions manufactured by a Communist Chinese military company, that the regulation did not apply to the ammunition he sold, and that he did not defraud the government because he did not misrepresent a material fact when he lied about the origin of the ammunition. Upon review, the Eleventh Circuit concluded Defendant's arguments failed because his interpretation of the applicable statutes was flawed and, "more fundamentally, is irrelevant to his misconduct." Because all of Defendant's arguments failed, the Court affirmed his convictions. View "United States v. Merrill" on Justia Law