Justia Government Contracts Opinion Summaries

The survivors of eight firefighters who died in 2003 sought survivors’ benefits under the Public Safety Officers’ Benefits Act, 42 U.S.C. 3796. The eight were employed by First Strike, a private company that works with governmental and private entities to help suppress wildfires, under agreements that characterized them as independent contractors. The Public Safety Officers’ Benefits Office denied the claims, and they requested redetermination by the Director of the Bureau of Justice Assistance (BJA), which also denied the claims. The Federal Circuit affirmed, finding that the BJA did not err in concluding that the firefighters were not public safety officers within the meaning of the Benefits Act. View "Moore v. Dep't of Justice" on Justia Law

The Eastern Municipal Water District (EMWD) hired general contractor S.J. and Burkhardt, Inc. (SJB) for a public works construction project in 2006. Safeco Insurance Company (Safeco) executed performance and payment bonds for the project. Plaintiff Golden State Boring & Pipe Jacking, Inc. (GSB) was a subcontractor for the project, completing its work by September 2006, but it did not receive payment. In March 2008, SJB sent a voluntary default letter to Safeco. In July 2008, GSB sued SJB, EMWD, and Safeco for the unpaid amounts under the contract, separately seeking payment from Safeco under its payment bond. EMWD filed a cross-complaint to interplead retained sums. Safeco made a motion for summary judgment on the cause of action for payment under the bond on the ground that GSB’s claim was untimely. The trial court granted the motion, finding that there had been three cessations of labor that triggered GSB’s duty to file a stop notice in order to secure payment under Safeco's payment bond. At a subsequent court trial on the contract claims, GSB was awarded judgment against SJB, and Safeco was awarded judgment on the interpleader action. GSB appealed the summary judgment ruling, arguing: (1) the trial court erroneously overruled its objections to evidentiary matters presented in support of Safeco’s summary judgment; and (2) the court erred in finding the action was untimely. Finding no reversible error, the Court of Appeal affirmed. View "Golden State v. Eastern Municipal Water Dist." on Justia Law

Plaintiff-petitioner Matthew Barrick challenged the award of a contract for the lease of office to the lowest bidder by the New Jersey Division of Property Management and Construction. Barrick argued that the winning bidder's (RMD) proposal failed to satisfy the distance-to-public-transportation requirement because its property was located .58 miles from the nearest bus stop. The Division determined that none of the bid properties, including Barrick’s, were located within one-quarter mile of public transit. After consultation with the DOL, the Division decided that the proposals would not be deemed non-conforming based on the distance requirement since it was not imposed by statute or regulation and each property was close enough to public transportation to meet the DOL's needs. Barrick sought reconsideration and to supplement the record. The Division upheld the award to RMD, explaining that, although Barrick's property satisfied the distance requirement, it had determined prior to awarding the lease that the requirement was not outcome-determinative. Barrick appealed without seeking a stay of the agency's decision. The Appellate Division panel reversed the award and remanded the matter to the Division either to award the lease to Barrick or rebid the project. Upon review, the Supreme Court concluded that the Director's determination that the distance requirement was not material to the RFP was unassailably reasonable and the decision awarding the lease contract to RMB was not arbitrary, capricious, or unreasonable. View "Barrick v. New Jersey" on Justia Law

The Job Corps program, a national residential training and employment program administered by the Department of Labor, was reformed by the 1998 Workforce Investment Act, which authorized the Secretary of Labor to enter into agreements with government agencies or private organizations to operate “Job Corps centers,” 29 U.S.C. 2887. Adams is the incumbent contractor for the Gadsden and the Shriver Job Corps Centers. When the contracts expired, Adams was disqualified from renewal because of the small business limitation imposed by the Department on the bids. Adams cannot does not qualify as a small business. The limit is $35.5 million in annual receipts, 13 C.F.R. 121.201. After unsuccessful bid protests, the Claims Court and the Federal Circuit upheld the administrative actions against challenges that they were arbitrary.View "Adams & Assocs., Inc. v. United States" on Justia Law

Plaintiff filed suit against Planned Parenthood under the False Claims Act, 31 U.S.C. 3729-3733, alleging that Planned Parenthood knowingly and falsely overbilled state and federal governments for contraceptives supplied to low-income individuals. The court affirmed the district court's dismissal of the complaint on the alternative ground that the complaint did not state plausible claims for relief. Even assuming that the third amended complaint sufficiently alleged falsity, it did not satisfy Rule 8(a), which requires a plausible claim that Planned Parenthood knowingly made false claims, with the statutory scienter. Because plaintiff's own complaint attachments defeated the plausibility of his allegations, and because he had already amended his complaint several times, the district court did not abuse its discretion in denying him further leave to amend. The district court also correctly concluded that plaintiff's claims under state law were time-barred. Accordingly, the court affirmed the judgment of the district court. View "Gonzalez v. Planned Parenthood" on Justia Law

The Randolph-Sheppard Act, 20 U.S.C. 107–107e, gives blind persons a priority in winning contracts to operate vending facilities on federal properties. Fort Campbell, Kentucky, operates a cafeteria for its soldiers. For about 20 years, Kentucky’s Office for the Blind (OFB) has helped blind vendors apply for and win the base’s contracts for various services. In 2012, the Army, the federal entity that operates Fort Campbell, published a solicitation, asking for bids to provide dining-facility-attendant services. Rather than doing so under the Act, as it had before, the Army issued this solicitation as a set aside for Small Business Administration Historically Underutilized Business Zones. OFB, representing its blind vendor, filed for arbitration under the Act, and, days later, filed suit, seeking to prevent the Army from awarding the contract. The district court held that it lacked jurisdiction to consider a request for a preliminary injunction. The Sixth Circuit vacated. OFB’s failure to seek and complete arbitration does not deprive the federal courts of jurisdiction. View "Commonwealth of Kentucky v. United States" on Justia Law

Mitchell began working as a Social Security Administration lawyer in 1998. The Department of Justice appointed her as a Special Assistant United States Attorney in 2006, a one-year appointment during which she remained an employee of and was paid by, the SSA. The Department extended that appointment, so that she served more than two years in the Special Assistant position. Effective December 21, 2008, the Department hired Mitchell as an AUSA in the same office. The Department’s form 50-B cited 28 U.S.C. 542, which authorizes AUSA appointments generally. The form stated that the appointment was not to exceed 18 months, was “temporary” and “subject to” successful completion of a pending background investigation. The background check concluded in July 2009. In August 2009, the Department provided Mitchell another form 50-B, citing 28 U.S.C. 542, but stating that Mitchell was subject to a two-year trial period beginning August 2, 2009, during which she could be removed without cause or appeal. The Department fired Mitchell days before that period was to end, without notice or opportunity to respond. The Merit Systems Protection Board dismissed an appeal for lack of jurisdiction, concluding that Mitchell was not an “employee” under 5 U.S.C. 7511(a). The Federal Circuit reversed, reasoning that Mitchell had “completed 2 years of current continuous service in the same or similar positions in an Executive agency under other than a temporary appointment limited to 2 years or less,” considering the time during which the background check was performed.View "Mitchell v. Merit Sys. Protection Bd." on Justia Law

Veridyne’s first contract to provide logistics services to the Maritime Administration (MARAD), was awarded pursuant to the Small Business Administration’s (SBA) 8(a) program for small, disadvantage businesses, 15 U.S.C. 637(a). To obtain extension of the contract without it being submitted to bidding, Veridyne estimated that the new contract would not exceed “$3,000,000 in the aggregate.” Veridyne and MARAD officials knew that the services to be provided under the extension would cost far more than $3,000,000. MARAD proposed that SBA approve the new contract without opening it to competition. MARAD, Veridyne, and the SBA executed the new contract. From 2001 to 2004, MARAD issued additional work orders to Veridyne and paid Veridyne $31,134,931.12. In part due to MARAD’s cost overruns, the Office of Inspector General investigated and concluded that Veridyne had obtained the extension through fraud. After a stop order issued, Veridyne continued to work for MARAD and submitted additional invoices. Veridyne sued to recover $2,267,163. The government entered a defense under the Fraudulent Claims statute, 28 U.S.C. 2514, and counterclaimed for penalties under the False Claims Act, 31 U.S.C. 3729, and the Contracts Disputes Act, 41 U.S.C. 7103. The Claims Court held that Veridyne’s contract claim was forfeited under the Fraudulent Claims Act, but awarded Veridyne partial recovery under a quantum meruit theory, while awarding penalties to the government under the False Claims Act and the Contract Disputes Act. The Federal Circuit reversed the quantum meruit award, but affirmed the award of penalties.View "Veridyne Corp. v. United States" on Justia Law

Martin began working for California’s Department of Corrections and Rehabilitation (CDCR) in 2000, and Sphar began working for CDCR in 2002. They were dismissed in 2004 and challenged their dismissals. In October 2008, an administrative law judge found that the dismissals had been unjustified and revoked them. The ALJ’s decision provided that a hearing would be set if the parties were “unable to agree as to salary, benefits and interest due under Government Code section 19584.The two were reinstated to employment. CDCR sought a writ of mandate to overturn the decision to include merit salary adjustments and physical fitness incentive pay (PFIP), and claimed that the offset to backpay for money earned from other employers should have included overtime pay. The CDCR also challenged the Board’s decision that Sphar would be compensated at salary range “K,” for which he had not qualified at the time of his dismissal. The superior court ordered that the offset include overtime pay, but denied the remainder of the petition. The court of appeal affirmed, concluding that section 19584 authorized the inclusion of merit salary adjustments and PFIP in the award, authorized Sphar to be compensated at salary range “K,” and required the inclusion of overtime pay in the offset. View "Dept. of Corrs. & Rehab. v. State Pers. Bd." on Justia Law

This case involves a dispute between Bessemer Water Service (BWS) and Lake Cyrus Development Company, Inc. (LCDC) over a contract referred to as the "1998 water agreement." In "Bessemer I," the Supreme Court concluded that the trial court had exceeded its discretion in holding that the 1998 water agreement was a valid binding contract and in awarding LCDC $224,979.83 because the agreement was entered into violation of section 39-2-2 and was therefore void. On appeal, the Attorney General intervened and filed a complain seeking to recover payments BWS made to LCDC under the 1988 water agreement. The trial court ultimately entered a judgment in favor of the Attorney General (for the benefit of BWS). LCDC thereafter filed a postjudgment motion requesting the trial court alter, amend or vacate its judgment, or in the alternative, order a new trial. The trial court denied LCDC's motion; that denial was brought before the Supreme Court in this case. After review, the Supreme Court held the trial court's denial of LCDC's motion should have been reversed. The case was then remanded for further proceedings. View "Lake Cyrus Development Company, Inc. v. Bessemer Water Service " on Justia Law