Government Contracts

Government oversight is on the rise.  A variety of government organizations have license to  investigate an increasingly wide range of contractor activities.  Such actions include routine financial audits, performance evaluations, investigation of suspected fraud, waste, or abuse, and outright criminal investigations.  Understanding the nature, jurisdictional scope, and potential exposure of a government inquiry is essential to protecting a company's rights.

A significant part of our practices involves representing clients in connection with audits, investigations, and government claims.  We have assisted clients in addressing issues and inquiries raised by various agencies, including the Defense Contract Audit Agency, Office of the Inspector General, Defense Contract Management Command,  the Army's Criminal Investigative Division, Air Force Office of Special Investigations, Navy Criminal Investigative Service, Department of Justice, U.S. Congress and other investigative bodies.  The issues involved have ranged from highly technical questions concerning the application of cost accounting standards and cost principles that govern public contracts to allegations of criminal misconduct.  In each instance, we take steps to ensure our clients quickly gain a thorough understanding of the pertinent facts, legal standards, risks, and the most appropriate means of  resolving the matter. 

Representative matters include:

• Represented major defense contractor in a Civil False Claims Act suit filed by the Department of Justice ("DOJ") alleging a variety of fraudulent actions, as well as violation of the Truth in Negotiations Act.  The case settled favorably to client.
• Representation of construction contractor in a False Claims Action pursued by the U.S. Attorney in Kentucky involving a multimillion-dollar claim arising from land reclamation projects.  The case was settled for partial return of disputed payments without additional fines or penalties.
• Resolution of a multimillion-dollar government defective pricing claim through a mediation conducted by an ASBCA judge.  The matter settled with the government withdrawing the defective pricing claims.
• Represented client in connection with resolution of Office of Inspector General investigation and report alleging million of dollars in fraudulent payments.  Matter settled for a fraction of the disputed amount and no adverse findings against client.
• Successful resolution of False Claims Act counter-claims in mediation before a former U.S. District Court judge in connection with changes claim on Navy contract.
• Devised successful strategy for convincing Department of Justice not to intervene in qui tam suit filed against a company that had recently been acquired by a Winston & Strawn client.