On September 18, 2025, the Department of Justice (“DOJ”) announced a civil False Claims Act (“FCA”) settlement against a New Jersey shipbuilder to resolve allegations that it improperly employed unauthorized workers to work on Navy ships. The settlement, which exceeded $4 million, is the second this year involving government contractors alleged to have employed unauthorized workers in violation of FAR 52.222-54, Employment Eligibility Verification. With immigration enforcement squarely at the center of the current administration’s domestic agenda, government contractors should be mindful of this enforcement theory and take appropriate steps to ensure compliance and protect themselves from a costly FCA claim. Continue Reading E-Verify and the False Claims Act: An Emerging Tool in Immigration Enforcement
Recent Cybersecurity FCA Settlement Demonstrates Heightened FCA Risk to Government Contractors
On July 14, 2025, the U.S. Department of Justice (DoJ) and General Services Administration (GSA) announced a $14.75 million settlement of Civil False Claims Act allegations against IT company Hill ASC Inc. (Hill). This settlement is consistent with the current Administration’s focus on “fraud, waste, and abuse” in government procurement
Continue Reading Recent Cybersecurity FCA Settlement Demonstrates Heightened FCA Risk to Government ContractorsJustice Department Establishes Civil Rights Fraud Initiative, Using False Claims Act to Target DEI
On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum establishing a DOJ Civil Rights Fraud Initiative. The Initiative will use the False Claims Act (“FCA”) to “investigate and . . . pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.” Educational institutions, federal contractors, grantees, and other entities that receive federal funding should take note of the latest FCA Initiative. Similar FCA initiatives, such as those focused on collusion and cybersecurity fraud, have resulted in significant related FCA enforcement.Continue Reading Justice Department Establishes Civil Rights Fraud Initiative, Using False Claims Act to Target DEI
August 2022 Developments Under President Biden’s Cybersecurity Executive Order
This is the sixteenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”). The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various Government agencies to implement the cyber EO from June 2021 through July 2022. This blog describes key actions taken to implement the Cyber EO during August 2022.Continue Reading August 2022 Developments Under President Biden’s Cybersecurity Executive Order
Senator Grassley and Senior DOJ Official Discuss Potential False Claims Act Changes and Enforcement Priorities
On February 17, 2021, Senator Chuck Grassley (R-IA) and Brian Boynton, Acting Attorney General for the Department of Justice’s Civil Division, provided opening remarks at the Federal Bar Association’s annual Qui Tam Conference. Both emphasized the key role of the FCA in combating fraud against the Government, and noted an anticipated increase in FCA enforcement actions in the coming years, particularly related to the Government’s pandemic response. In addition, Senator Grassley offered a preview of potential legislative changes to the False Claims Act, and Boynton outlined DOJ’s enforcement priorities for the coming year.
Continue Reading Senator Grassley and Senior DOJ Official Discuss Potential False Claims Act Changes and Enforcement Priorities
DoD Reassures Major Contractors It’s Not Returning to Old IR&D Practices, But Significant Questions Still Remain
On January 4, 2017, the Department of Defense’s top acquisition official issued a memorandum further clarifying the implementation of a November 2016 final rule concerning the reimbursement of major contractors’ Independent Research & Development (“IR&D”) costs. In a move likely intended to reassure major defense contractors, Undersecretary of Defense for Acquisition, Technology & Logistics, Frank Kendall, stressed that the recent final rule “merely codifies a long standing practice” used by contractors. Mr. Kendall also emphasized that DoD does not require major contractors to obtain formal or “de facto” approval of IR&D projects before incurring such costs.
But while DoD’s efforts to comfort industry are commendable, some key questions remain, including most prominently: whether and how DoD auditors will utilize the results of pre-IR&D “technical interchange” meetings to question the allowability of IR&D costs.Continue Reading DoD Reassures Major Contractors It’s Not Returning to Old IR&D Practices, But Significant Questions Still Remain
D.C. Circuit Upholds Constitutionality of SBA’s 8(a) Program
Earlier this month, in Rothe Development, Inc. v. Department of Defense, the D.C. Circuit upheld the constitutionality of the Small Business Administration (“SBA”) 8(a) program by rejecting arguments that the Small Business Act contains an unconstitutional classification based on race. Although the decision will likely be seen as a positive development for small business government contractors and other 8(a) program supporters, the court’s opinion leaves the door open for further challenges to the 8(a) program based on the SBA’s implementing regulations.
Continue Reading D.C. Circuit Upholds Constitutionality of SBA’s 8(a) Program
Federal Circuit Confirms that Award Term Extension Constitutes New Contract for Purposes of Bid Protest Jurisdiction
On July 12, 2016, in Coast Professional, Inc. et. al v. United States, No. 2015-5077 (Fed. Cir. July 12, 2016), the U.S. Court of Appeals for the Federal Circuit overturned a Court of Federal Claims (“CoFC”) decision, finding that the CoFC erred in ruling that it did not have bid protest jurisdiction over the award of task orders characterized as “award-term extensions.” The Federal Circuit’s decision provides clarity on the scope of Tucker Act’s bid protest jurisdiction, and provides a strong defense against Government arguments that attempt to limit that jurisdiction going forward.
Continue Reading Federal Circuit Confirms that Award Term Extension Constitutes New Contract for Purposes of Bid Protest Jurisdiction
DoD Finally Issues Proposed Rule Addressing 2012 NDAA Changes to Technical Data Rights
On June 16, 2016, the Department of Defense (DoD) issued a proposed rule to implement Section 815 of the National Defense Authorization Act for Fiscal Year 2012, which was originally enacted in December 2011. Under the proposed rule, DoD would be given additional flexibility to release technical data or computer software to third parties (including competitors) if the data qualify as “segregation or reintegration” data. Although the data would include limited-rights data or restricted-rights software, the recipient would be permitted to use the data or software only for segregation or reintegration, and must destroy the data or software at the “completion of authorized activities.” The rule also permits, among other changes, the DOD to require delivery, without any time limits, of various technical data and software that either have been generated or merely “utilized” in the performance of a contract. Four years in the making, this proposed rule attempts to implement and clarify statutory changes introduced in section 815 of the National Defense Authorization Act for Fiscal Year 2012 (the “2012 NDAA”). Despite the attempt to clarify, the proposed regulations still leave open significant questions for contractors with respect to technical data rights.
Continue Reading DoD Finally Issues Proposed Rule Addressing 2012 NDAA Changes to Technical Data Rights
ASBCA Addresses CDA Jurisdiction Over Claims Involving Contractor Fraud
The Armed Services Board of Contract Appeals (“ASBCA” or the “Board”) recently issued an opinion addressing several important, and controversial, topics of interest to government contractors. The lengthy opinion addressed key issues related to the Board’s jurisdiction over government claims and affirmative defenses based on alleged contractor fraud, the Contract Disputes Act (“CDA”) statute of limitations, and the impact of criminal plea agreements and civil False Claims Act settlements on contract disputes.
Continue Reading ASBCA Addresses CDA Jurisdiction Over Claims Involving Contractor Fraud