The US government recovered a record $5.7 billion in FCA-related settlements in fiscal year 2014 and secured another $3.5 billion in fiscal year 2015. Given increasing DOJ scrutiny and the proliferation of qui tam whistleblowers under the FCA, the enforcement climate in the federal contracting space will remain challenging for years to come. Contractors increasingly turn to our government contracts team for assistance with federal investigations, FCA litigation, and mandatory disclosures.
Our government contracts team works as appropriate with colleagues in our white collar and government investigations practice, which includes more than a dozen former assistant US attorneys. Together, we resolve investigations by agency IGs, the DOJ, and other federal, state, and local enforcement authorities alleging government contracts noncompliance. We also resolve civil and criminal violations relating to the performance of government contracts.
We have defended clients in industries as diverse as technology, professional services, defense/aerospace, life sciences, nuclear energy, telecommunications, utilities, and international construction. We have dealt with virtually every leading enforcement agency, including the DOJ, the US Department of Defense (DOD), the US Air Force (USAF) Office of Special Investigations, the Naval Criminal Investigations Service, the Defense Contract Audit Agency (DCAA), the now-defunct Special Inspector General for Iraq and Afghanistan Reconstruction, and IGs at the General Services Administration (GSA), the US Department of Veterans Affairs (VA), the National Security Agency (NSA), the US Department of Homeland Security, the US Postal Service (USPS), the US Coast Guard, and the US Department of Transportation, among others.
Our government contracts practitioners also conduct compliance- and ethics-related internal investigations and serve as counsel for defense contractors in congressional inquiries in the defense and national security arenas.
One of the distinguishing features of our team has been its success in defending FCA cases relating to allegations of procurement fraud. In the recent past, members of our practice have filed four successful motions to dismiss FCA actions brought against two of the largest US technology contractors, and we have resolved numerous other FCA matters. We also have resolved related concerns with agency suspension and debarment officials (SDOs).
We routinely conduct internal investigations and assist with mandatory disclosures required by the Federal Acquisition Regulation (FAR) mandatory disclosure rule concerning credible evidence of certain criminal or civil violations related to a government contract, as well as overpayments.
Select Matters Handled by Our Lawyers
- Successful motions to dismiss three civil FCA cases against Fortune 10 IT contractors in United States ex rel. Folliard v. Synnex Corp., 2011 WL 2836372 (D.D.C. 2011); United States ex rel. Folliard v. Hewlett-Packard Co., 272 F.R.D. 31 (D.D.C. 2011); and United States ex rel. Crennen v. Dell Marketing L.P. et al, 711 F. Supp. 2d 157 (D. Mass. 2010)
- Conducted an internal investigation for one of the largest DOD contractors concerning allegations of potential defects in military/law enforcement products; defended the contractor in a DOJ FCA investigation in the District of Columbia, resulting in a settlement of civil FCA allegations.
- Conducted a worldwide internal investigation for a major DOD contractor involving allegations of cybersecurity violations relating to the handling and transmission of military personnel medical records; resolved the matter with the DOD with no contractual, civil, or criminal ramifications.
- Conducted an internal investigation for a DOD private security services contractor relating to alleged bribes/gratuities in connection with a contract award to provide services in Iraq; resolved the matter with no contractual, civil, or criminal ramifications.
- Conducted numerous investigations and filed related mandatory disclosures with the DOD, GSA, and NSA IGs; each matter was resolved with no civil or criminal ramifications.
- Successfully defended a matter involving a US Department of Energy (DOE) contractor operating a nuclear waste depository. A motion to dismiss the qui tam lawsuit was granted, and dismissal was summarily affirmed in United States ex rel. Rockefeller, 274 F. Supp. 2d 10 (D.D.C. 2003), aff’d, 2004 WL 180264 (D.C. Cir. 2004).
- Represented a major DOE contractor in an investigation and dispute over accounting practices; successfully persuaded the DOJ, agency investigators, and the DCAA to decline prosecution, without requirement of any payment by the client.
- Favorably settled a matter for a Fortune 250 supplier of office products accused of impermissibly supplying foreign-origin products in violation of Trade Agreement Act certifications.
- Favorably settled a matter for a supplier of spent nuclear fuel transportation services to the DOE accused of impermissible double billing.
- Successfully persuaded the government not to intervene against a client that supplied nuclear materials to the federal government, and persuaded a qui tam relator plaintiff to voluntarily dismiss claims against the client in United States ex. rel. Gonter v. Hunt Valve Company et al., No. 0:01CV634 (N.D. Ohio).