Justia Government Contracts Opinion Summaries

Percipient.ai, Inc., a company that offers a commercial computer vision (CV) platform, appealed a decision by the United States Court of Federal Claims that dismissed its case against the United States and CACI, Inc.-Federal. The case centered on the National Geospatial-Intelligence Agency's (NGA) procurement process for its SAFFIRE project, which aimed to improve its processes for obtaining and storing visual intelligence data. Percipient alleged that NGA and its contractor, CACI, violated the Federal Acquisition Streamlining Act of 1994 (FASA) and other procurement-related statutes by not considering its commercial CV platform, Mirage, for the project.The Court of Federal Claims had dismissed Percipient's case, ruling that it lacked subject matter jurisdiction under the FASA task order bar, which limits protests related to the issuance of task orders. The court also rejected Percipient's arguments related to the Tucker Act, standing, and timeliness.The United States Court of Appeals for the Federal Circuit reversed the lower court's decision. It held that the FASA task order bar did not apply because Percipient's protest was not connected to the issuance of a task order. The court also found that Percipient's protest fell within the jurisdiction of the Court of Federal Claims under the Tucker Act, as it alleged a violation of procurement-related statutes. The court further held that Percipient had standing to bring the case and that its claims were timely. The case was remanded for further proceedings. View "PERCIPIENT.AI, INC. v. US " on Justia Law

The case involves Robert James McCabe, a former sheriff of the City of Norfolk, Virginia, who was convicted of carrying out fraud and bribery schemes with contractors concerning medical and food services for prisoners in the Norfolk Jail. Over 20 years, McCabe provided favored contractors with inside information about competing bids for the Jail’s contracts, altered and extended contracts for their benefit, and received various things of substantial value in return. McCabe was convicted of 11 federal offenses, including charges of conspiracy, honest services mail fraud, Hobbs Act extortion, and money laundering. He was sentenced to 144 months in prison, plus supervised release.McCabe appealed his convictions and sentences, raising four contentions of error. He argued that his trial was unfairly conducted before a trial of a co-defendant, that the trial court erred by admitting hearsay statements, that the jury instructions were incorrect, and that the court wrongly applied an 18-level sentencing enhancement. The United States Court of Appeals for the Fourth Circuit rejected all of McCabe’s contentions and affirmed his convictions and sentences. View "US v. McCabe" on Justia Law

Eghbal Saffarinia, a former high-ranking official in the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG), was required by federal law to file annual financial disclosure forms detailing most of his financial liabilities over $10,000. One of Saffarinia’s responsibilities was the allocation of HUD-OIG’s information technology contracts. An investigation revealed that Saffarinia had repeatedly falsified his financial disclosure forms and failed to disclose financial liabilities over $10,000. The investigation also revealed that one of the persons from whom Saffarinia had borrowed money was the owner of an IT company that had been awarded HUD-OIG IT contracts during the time when Saffarinia had near-complete power over the agency operation.Saffarinia was indicted on seven counts, including three counts of obstruction of justice. A jury convicted Saffarinia on all seven counts, and the District Court sentenced him to a year and a day in federal prison, followed by one year of supervised release. Saffarinia appealed his conviction, arguing that the law under which he was convicted did not extend to alleged obstruction of an agency’s review of financial disclosure forms because the review of these forms is insufficiently formal to fall within the law’s ambit. He also argued that the evidence presented at trial diverged from the charges contained in the indictment, resulting in either the constructive amendment of the indictment against him or, in the alternative, a prejudicial variance. Finally, Saffarinia challenged the sufficiency of the evidence presented against him at trial.The United States Court of Appeals for the District of Columbia Circuit found no basis to overturn Saffarinia’s conviction. The court held that the law under which Saffarinia was convicted was intended to capture the sorts of activity with which Saffarinia was charged. The court also found that the government neither constructively amended Saffarinia’s indictment nor prejudicially varied the charges against him. Finally, the court found that the evidence presented at Saffarinia’s trial was sufficient to support his conviction. The court therefore affirmed the judgment of the District Court. View "USA v. Saffarinia" on Justia Law

This case involves a dispute between two tribally owned businesses, AQuate II, LLC and Kituwah Services, LLC, both of which compete for federal contracts under the Small Business Administration’s 8(a) Business Development Program. AQuate alleges that Kituwah and its employee, Jessica Myers, stole trade secrets related to a government contract that AQuate had won in the past. AQuate claims that Myers, a former employee, breached her employment agreements and violated both the Defend Trade Secrets Act of 2016 and the Alabama Trade Secrets Act. Kituwah, however, argues that it is shielded by tribal sovereign immunity, while Myers contends that her employment contract mandates that any claims against her can only be brought in a designated tribal court.The United States District Court for the Northern District of Alabama dismissed the case, finding that Kituwah had not waived sovereign immunity for the trade secrets claims and that the claims against Myers should be resolved in the Alabama-Quassarte Tribal Town court, as stipulated in her employment contract. AQuate appealed the decision, arguing that the tribal court did not exist.The United States Court of Appeals for the Eleventh Circuit reversed the district court’s decision. The appellate court found that Kituwah had waived sovereign immunity for claims related to the federal contracting program and could be sued. Regarding Myers, the court determined that the district court failed to consider whether the clause naming the allegedly nonexistent tribal court as the appropriate forum was valid and enforceable. The case was remanded for further consideration. View "Aquate II, LLC v. Myers" on Justia Law

The case involves Vanda Pharmaceuticals, a drug manufacturer, and the Centers for Medicare & Medicaid Services (CMS). Vanda challenged a 2020 regulation by CMS that expanded the definition of a "line extension" drug under the Medicaid Drug Rebate Program. This program requires drug manufacturers to reimburse Medicaid if they increase their prices faster than inflation. A "line extension" drug, which is a new formulation of an existing drug, can also be liable for price increases of the original drug. Vanda argued that the regulation expanded the definition of a line extension beyond what the Medicaid statute permitted.Previously, the district court granted summary judgment to CMS, disagreeing with Vanda's argument. The court held that the agency's regulation was within the bounds of the Medicaid statute.The United States Court of Appeals for the Fourth Circuit affirmed the district court's decision. The court found that the agency's definitions of "line extension" and "new formulation" were within the Medicaid statute's ambit. It also held that the agency's interpretation of the oral-solid-dosage-form requirement was not contrary to law. The court rejected Vanda's argument that the agency's rulemaking process was arbitrary and capricious, finding that the agency had reasonably considered the relevant issues and explained its decision. View "Vanda Pharmaceuticals, Inc. v. Centers for Medicare & Medicaid Services" on Justia Law

Frederic P. Zotos, an attorney residing in Cohasset, Massachusetts, filed a qui tam complaint against the Town of Hingham and several of its officials. Zotos alleged that the town and its officials posted speed limit signs and advisory speed plaques that did not comply with applicable federal and state laws and regulations. He further claimed that the town applied for and received reimbursements for these signs and plaques from both the federal government and the Commonwealth of Massachusetts. Zotos asserted that the town fraudulently induced the federal government to pay it roughly $3,300,000 and the Commonwealth to pay it approximately $7,300,000.The United States District Court for the District of Massachusetts dismissed Zotos's complaint for failure to state a claim upon which relief could be granted. The court concluded that the qui tam action was not barred by either claim or issue preclusion. However, it found that Zotos's claims fell short of the False Claims Act (FCA) and Massachusetts False Claims Act's (MFCA) requirements. Specifically, it ruled that Zotos failed to sufficiently plead that the alleged misrepresentations were material to the federal government's and the Commonwealth's respective decisions.On appeal, the United States Court of Appeals for the First Circuit affirmed the district court's decision. The appellate court found that Zotos's complaint did not adequately allege that the defendants' purported misrepresentations were material. It noted that the essence of the bargain under the Federal-Aid Highway Program (FAHP) and the Chapter 90 program was that the defendants incurred permissible costs on projects that were duly reimbursed. The court concluded that Zotos's allegations amounted to ancillary violations that, without more, were insufficient to establish materiality. View "United States ex rel. Zotos v. Town of Hingham" on Justia Law

The case involves Purpose Built Families Foundation, a Florida nonprofit that received federal grants from the Department of Veterans Affairs to serve veterans and their families. In 2022, the Department notified the Foundation that activities and payments under five grants would be terminated or withheld due to "major fiscal mismanagement activities". The Foundation sued the Secretary of Veterans Affairs under the Administrative Procedure Act and received a temporary restraining order. Subsequently, the Department withdrew the challenged notices and the Secretary moved to dismiss the action as moot. The district court granted the motion.The United States Court of Appeals for the Eleventh Circuit affirmed the decision of the district court. The court held that the case was moot, as the Department's withdrawal of the notices meant the Foundation's claims could not provide meaningful relief. It also ruled that neither the voluntary-cessation nor the capable-of-repetition-yet-evading-review exceptions to mootness applied. The court stated that the Department's subsequent actions, including a more robust process and new termination notices, were materially different from the original notices. Therefore, a lawsuit challenging the new termination notices would involve materially different allegations and answers. The court concluded that the Foundation would have ample opportunity for judicial review of the legality of the new terminations, once the administrative process was completed. View "Purpose Built Families Foundation, Inc. v. USA" on Justia Law

This case involves Avue Technologies Corporation ("Avue") and the Secretary of Health and Human Services and the Administrator of the General Services Administration. Avue is a software development company that sells its software to private and government entities, which helps them automate administrative tasks while complying with statutory, regulatory, and policy requirements. Avue does not sell its software licenses directly to federal agencies. Instead, it sells annual subscriptions through third party Carahsoft Technology Corporation (“Carahsoft”), an authorized reseller that has a Federal Supply Schedule (“FSS”) contract with the General Services Administration (“GSA”).Avue tried to govern its relationship with end users of its software through an end-user licensing agreement ("EULA"), which is incorporated into the FSS contract between Carahsoft and the GSA. In 2015, the Food and Drug Administration ("FDA") placed a task order for a subscription to Avue's software under the FSS contract. However, in 2016, the FDA chose not to renew its subscription, leading Avue to claim that the FDA had violated its EULA.The Civilian Board of Contract Appeals ("Board") dismissed Avue's appeal for lack of jurisdiction, stating that even if the EULA established a contract between Avue and the U.S. Government, the Board lacked jurisdiction because the EULA was not a procurement contract within the meaning of the Contract Disputes Act ("CDA"). Avue appealed this decision to the United States Court of Appeals for the Federal Circuit.The court disagreed with the Board's decision, stating that Avue only needed to allege non-frivolously that it had a contract with the U.S. Government to establish the Board's jurisdiction, and it didn't need to prove the existence of such a contract. The court held that Avue's allegation that it was part of a procurement contract was non-frivolous and sufficient to establish the Board's jurisdiction. Therefore, the court vacated the Board's dismissal and remanded the case for further proceedings on the merits. View "AVUE TECHNOLOGIES CORPORATION v. HHS " on Justia Law

The United States Court of Appeals for the Tenth Circuit affirmed convictions against Whitney McBride and her company, Odyssey International Inc., for fraudulent conduct in obtaining a government contract. McBride was convicted of five offenses, including wire fraud, major fraud, and making a false declaration. She appealed the convictions, arguing that they should be vacated based on a Supreme Court case decided after her conviction, Ciminelli v. United States, which dealt with the interpretation of federal fraud statutes. She also contended that her conviction for making a false declaration should be vacated due to errors in the jury instructions.The court rejected her arguments, finding that she had waived her challenges to the convictions for conspiracy, wire fraud, and major fraud because she invited error by proffering the jury instruction she now disputed. The court also found that she waived her challenges due to her numerous procedural errors, including failing to argue for plain error on appeal and failing to meet the requirements of the Federal Rules of Appellate Procedure. The court concluded that she had waived her arguments and affirmed her convictions. View "United States v. McBride" on Justia Law

In this case, Fred Zackery sought access to confidential settlement agreements between the Water Works and Sewer Board of the City of Gadsden ("the Board") and various carpet and chemical manufacturers. Zackery requested these agreements under the Open Records Act. The Board had sued the manufacturers, alleging they contaminated the Board's raw water intake. The Board settled with all the manufacturers and planned to use the settlement funds to build and maintain a new water-treatment facility.Zackery, a citizen of Gadsden and a local radio station manager, intervened in the lawsuit specifically to request disclosure of the settlement agreements. The trial court granted his intervention but ruled that the Board didn't have to disclose the agreements until it had accepted a bid for the construction of the water-treatment facility. This decision was grounded in Alabama's Competitive Bid Law, which is designed to guard against corruption and favoritism in awarding contracts for public projects.The Supreme Court of Alabama upheld the trial court's decision, affirming that the immediate disclosure of the settlements could interfere with the competitive bid process, potentially driving bids upwards and leaving fewer funds for the long-term operation and maintenance of the new facility. This situation, the court reasoned, could cause rate hikes for the Board's customers. Therefore, the court concluded that an exception to the Open Records Act justified nondisclosure of the settlement agreements until the competitive-bid process was complete. View "Zackery v. Water Works and Sewer Board of the City of Gadsden" on Justia Law