As reported and analyzed in recent posts, the Trump administration has begun implementing a number of new tariffs, including three sets of country-based tariffs (China, Canada, and Mexico) and Section 232 tariffs on steel and aluminum. We expect further announcements of reciprocal tariffs on imports from China, Canada, and Mexico, and other tariffs on specific items including lumber, semiconductors, and agricultural products. These tariffs raise significant concerns for government contractors. We have outlined below five points government contractors should keep in mind when assessing the impact of these tariffs on their contracts.Continue Reading The Trump Tariffs and Federal Contractors: In These Taxing Times, Contractors Have a Duty To Know These Five Things

Daniel Russell Jr.
Dan Russell represents government contractors in complex, high-stakes litigation. Over the past two decades, Dan has served as lead counsel for some of the largest U.S. defense contractors in a broad range of contract disputes and tort claims, including cases valued well in excess of $100 million.
Dan has experience litigating contract claims and disputes before federal judges and juries, the Boards of Contract Appeals, and the U.S. Court of Federal Claims, including matters arising out of terminations, cost-allowability disputes, defective pricing claims, prime-sub disputes, and claims under the Contract Disputes Act (CDA). Dan has also represented contractors in a myriad of tort suits arising out of work performed for the federal government. Dan has unparalleled experience defending “contractor on the battlefield” tort suits involving contracts performed during wartime or other high-risk, contingency environments. Dan has obtained complete dismissals of tort suits based on an array of federal-law-based defenses, including the government contractor defense, the political question doctrine, federal preemption, and derivative sovereign immunity.
Dan has litigated a variety of other matters involving government contracts and uniquely-federal issues, including: cases brought under the civil False Claims Act (FCA); insurance coverage matters for federal contractors; claims against federal agencies brought under the Administrative Procedure Act and the Federal Tort Claims Act; and regulatory enforcement actions.
At the appellate level, Dan has argued cases before the U.S. Courts of Appeals for the Fourth Circuit, the Fifth Circuit, and the Ninth Circuit. He has also represented clients in matters before numerous other appellate courts and the U.S. Supreme Court.
In addition to his litigation practice, Dan regularly provides risk-mitigation counseling for contractors, with a particular focus on strategies to reduce potential exposure to tort claims and other liabilities in connection with the performance of high-risk government contracts.
Covington Submits Supreme Court Amicus Curiae Brief Addressing Derivative Sovereign Immunity for Government Contractors
On behalf of the Professional Services Council (PSC), this past week Covington filed an amicus brief in the U.S. Supreme Court in support of the petitioner in The GEO Group, Inc. v. Menocal (No. 24-758). The brief urges the Court to grant certiorari and, ultimately, to hold that government contractors are entitled to immediately appeal a district court’s denial of derivative sovereign immunity under the collateral order doctrine.Continue Reading Covington Submits Supreme Court Amicus Curiae Brief Addressing Derivative Sovereign Immunity for Government Contractors
You Can’t Always Get What You Want: ASBCA Channels Rolling Stones and Awards Contractor $4.9 Million in Delay Damages

A recent decision by the Armed Services Board of Contract Appeals found the Navy liable to a commercial crane manufacturer for delay damages. In Konecranes Nuclear Equip. & Servs., LLC, ASBCA No. 62797, 2024 WL 2698011 (May 7, 2024), the Board reiterated the age-old lesson—you have to read the contract—and provided guidance about how to calculate the delay damages. Beyond that, the Board found apparent inspiration for part of its holding in an unlikely source: a classic song by the Rolling Stones.Continue Reading You Can’t Always Get What You Want: ASBCA Channels Rolling Stones and Awards Contractor $4.9 Million in Delay Damages
Contractors Had a Strong Success Rate Before the CBCA in FY 2023
The Civilian Board of Contract Appeals has published its annual report for FY 2023, providing data regarding the number of appeals and contractor success rates at the Board. The data illustrated a number of noteworthy points — and a few welcome trends — for the contracting community.Continue Reading Contractors Had a Strong Success Rate Before the CBCA in FY 2023
It Makes No Deference: Fed Circuit Confirms Proper Standard of Review in Default Termination Challenges
Earlier this month, the Federal Circuit provided new guidance on the high burden that the government must carry to terminate a contract for default. In Dep’t of Transp. v. Eagle Peak Rock & Paving, Inc., the Federal Circuit held that the validity of a termination decision does not depend exclusively on the contracting officer’s reasoning — rather, the government must produce evidence during litigation to prove the contractor’s default under a de novo standard of review. The Eagle Peak decision illustrates that, absent a threshold showing that the contracting officer’s decision was pretextual, contractors challenging a default decision should focus on developing the “clean slate” record needed to rebut the government’s allegations, rather than disputing the contracting officer’s rationale (or lack thereof) for termination.Continue Reading It Makes No Deference: Fed Circuit Confirms Proper Standard of Review in Default Termination Challenges
Are Federal Contractors Immunized From Vaccination Litigation? Mitigating The Risk Of Civil Liabilities Arising Out Of The COVID-19 Vaccine Mandate
Federal government contractors face many uncertainties as they implement President Biden’s COVID-19 vaccine mandate. This includes the distinct possibility of civil lawsuits arising out of their implementation of the mandate, including potential allegations of invasion of privacy, wrongful termination, lost wages, discrimination, personal injury or other common law claims or statutory violations. At least one such lawsuit already has been filed. In that suit, dozens of aggrieved employees allege that the contractor’s vaccine mandate violates state law, and they seek an injunction and other relief. Other lawsuits are sure to follow.
But there is good news for contractors: Established legal doctrines should provide contractors some degree of protection—and perhaps complete immunity—against such lawsuits. In addition to the statutory protections afforded to contractors under the PREP Act, contractors may be protected from civil liability based on federal-law-based defenses that have been recognized and applied in analogous government contracting settings. In the coming weeks, as contractors navigate the many challenges associated with the vaccine mandate, they should carefully consider the risk of civil litigation, and, in order to minimize potential exposure in such lawsuits, proactively implement practices that maximize the likelihood that these doctrines and defenses will be applicable, as discussed below.Continue Reading Are Federal Contractors Immunized From Vaccination Litigation? Mitigating The Risk Of Civil Liabilities Arising Out Of The COVID-19 Vaccine Mandate
Fifth Circuit Reaffirms Breadth of Yearsley Immunity For Government Contractors
Government contractors should take note of the Fifth Circuit’s June 30, 2021 decision in Taylor Energy Co. v. Luttrell, which reaffirmed that contractors can enjoy a broad immunity from third-party liabilities—known as “derivative sovereign immunity,” or “Yearsley immunity.” Yearsley immunity emanates from Yearsley v. W.A. Ross Const. Co., an 80-year-old Supreme Court decision, which established that a contractor is immune when (i) it performed acts pursuant to a valid authorization of Congress and (ii) the contractor did not exceed the scope of that authority.
In Taylor Energy, the court dismissed claims arising out of an oil spill containment project in the Gulf of Mexico. The basic claim in the suit was that the contractor failed to effectively remediate and contain the oil. The Fifth Circuit found that the government: (i) provided direction to the contractor through the statement of work, in the form of “goals” and specific contract deliverables and deadlines; and (ii) periodically met with the contractor and reviewed and approved the work during performance. Based on these core facts, the court held the contractor was immune. The court held that it was irrelevant that the statement of work was “barebones,” and that the contractor—rather than the government—designed certain elements of the remediation effort. Following the Fourth Circuit’s 2018 decision in Cunningham v. GDIT, the Taylor Energy decision is another appellate court victory for contractors in the wake of the Supreme Court reaffirming Yearsley’s core principles in Campbell-Ewald Co. v. Gomez.Continue Reading Fifth Circuit Reaffirms Breadth of Yearsley Immunity For Government Contractors
Will an Unappealing Trend in Battlefield Contractor Suits Continue? Following A Pattern of Appellate Indecision—Fueled by the Government’s Equivocal Litigation Stances—the Fourth Circuit Mulls En Banc Review
It’s often said that hard cases make bad law. In the realm of contractor-on-the-battlefield lawsuits, hard cases seem to be making no law—at least at the appellate level.
As detailed in an amicus brief submitted by Covington on behalf of KBR last week in CACI Premier Technology Inc. v. Al Shimari, No. 19-1328 (4th Cir.), time and again in suits against battlefield contractors, appellate courts have refused to provide definitive rulings regarding threshold, immunity-based defenses. This chronic appellate-court indecision has caused unnecessarily-protracted litigation, which in turn has imposed enormous burdens on the U.S. military; permitted expansive discovery intruding upon sensitive military judgments; and rolled up litigation costs totaling tens of millions of dollars—costs that, in many instances, are reimbursed by the government and thus ultimately borne by taxpayers. In other words, lack of timely appellate review has resulted in the very harms that immunity and related defenses are designed to prevent. Ironically, a major reason why these suits have inflicted such harm on these important federal interests is the United States’ own equivocal and inconsistent litigation positions.
Continue Reading Will an Unappealing Trend in Battlefield Contractor Suits Continue? Following A Pattern of Appellate Indecision—Fueled by the Government’s Equivocal Litigation Stances—the Fourth Circuit Mulls En Banc Review
Fourth Circuit Embraces Expansive View of Derivative Sovereign Immunity for Government Contractors
Last week, the Fourth Circuit Court of Appeals affirmed a lower court decision to dismiss a Telephone Consumer Protection Act (“TCPA”) lawsuit against General Dynamics Information Technology, Inc. (“GDIT”), on the basis that GDIT was immune from suit as a government contractor under what is known as the “Yearsley doctrine.” Craig Cunningham v. GDIT, No. 17-1592 (Apr. 24, 2018). The decision follows a long line of Fourth Circuit decisions in which contractors have been granted protection from liability when they perform work that supports important governmental functions.
Continue Reading Fourth Circuit Embraces Expansive View of Derivative Sovereign Immunity for Government Contractors
Construction Contractors: The Government Contractor Defense is Alive and Well in the Fifth Circuit
Construction contractors take note: the government contractor defense is alive and well in the Fifth Circuit. In Sewell v. Sewerage and Water Board of New Orleans, the Fifth Circuit recently confirmed that construction companies can successfully assert the government contractor defense in response to tort lawsuits that arise from their performance of federal public works and infrastructure projects. This is a welcomed decision in the Fifth Circuit, which had signaled in recent years that a higher level of proof may be required to establish the first element of the defense ─ i.e., that the government meaningfully reviewed and approved reasonably precise specifications for the allegedly defective construction feature.
The Sewell case illustrates that ─ with the right litigation strategy and a skillfully crafted evidentiary record ─ construction contractors may well prove the defense in cases involving even “rudimentary or general construction features.”
Continue Reading Construction Contractors: The Government Contractor Defense is Alive and Well in the Fifth Circuit