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Todd Overman

Todd Overman is the chair of the firm’s Government Contracts practice and Managing Partner of the Washington, D.C. office.  He has over twenty years of experience advising companies on the unique aspects of doing business with the federal government. Over the last decade, he has advised on more than 50 transactions involving the purchase or sale of a government contractor.

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Lockheed Martin Integrated Systems (“LMIS”), a subsidiary of Lockheed Martin, agreed on Friday, December 19, 2014 to pay $27.5 million to resolve allegations that it inflated labor costs and submitted false claims to the government in violation of the False Claims Act.  Specifically, the Department of Justice (“DOJ”) alleged that LMIS overbilled for work performed by personnel who lacked the job qualifications required under Rapid Response and Strategic Services Sourcing contracts issued by the U.S. Army Communications and Electronics Command.

The overbilling allegations against LMIS are similar to the DOJ’s allegations in a separate case against DRS Technical Services Inc., which resulted in a $13.7 million settlement announced on October 7, 2014.  The DOJ also alleged in that case that DRS Technical Services overbilled labor costs for under-qualified employees under the Rapid Response contract.Continue Reading Defense Contractor Reaches Settlement in Procurement Fraud Case Involving Overbilling Allegations

Earlier this year, Geoff Orazem founded Eastern Foundry, an incubator for government contracting companies in Washington, D.C. The veteran-owned business will leverage professional service providers, coaches, mentors, and BD support teams to provide structured and personal coaching for small businesses seeking government contracts.

We had a great time meeting with Geoff and his clients in…

Another chapter in the story of one of the most brazen procurement fraud schemes in United States history came to a close on Monday, December 15, 2014, when Eyak Technology LLC (“EyakTek”) and Eyak Services LLC (“ESL”) agreed to pay $2.5 million and relinquish all rights to any additional payments to resolve alleged False Claims Act and Anti-Kickback Act violations.

Between 2005 and 2011, EyakTek, an Alaska Native-owned corporation, held the Technology for Infrastructure, Geospatial, and Environmental Requirements (“TIGER”) contract, a $1 billion prime contract with the U.S. Army Corp of Engineers. It was alleged that throughout the term of the TIGER contract, EyakTek’s former director of contracts, Harold F. Babb, directed subcontracts to vendors that paid him illegal kickbacks. EyakTek and ESL, according to the DOJ, “submitted invoices to the Army Corp that included charges for work that was never performed by the subcontractors and lacked internal controls to detect the improper charges.” The government alleges that EyakTek may have been overpaid nearly $30 million as a result of the misconduct.Continue Reading Government Contractor Reaches Global Settlement to Resolve Procurement Fraud Allegations

Contracting with the Federal Government frequently includes many unique risks and uncertainties. In the wake of the Ebola epidemic occurring overseas the United States has stepped in to provide assistance, much of which comes in the form of the use of contractors. Being exposed to Ebola is not a small risk and comes with many uncertainties including becoming subject to large third-party claims for injury, death or damages. In order to continue supporting these efforts in the Ebola outbreak, there has been a drive to mitigate this risk factor for contractors. On November 13, President Obama released a Presidential Memorandum granting the Administrator of the United States Agency for International Development (USAID) the authority to indemnify companies from lawsuits related to “contracts performed in Africa in support of USAID’s response to the Ebola outbreak in Africa where the contractor, its employees, or subcontractors will have significant exposure to Ebola.”
Continue Reading President Obama Authorizes Use of PL 85-804 to Protect Ebola Contractors

Government contractors who have recently registered or re-registered in the System for Award (SAM) database have come across a new disclosure requirement regarding their corporate structure. New questions inquiring about an “immediate owner” and a “higher-level owner” have sparked confusion as to what these requirements are and where they are coming from.

The requirements were prompted by a new FAR Subpart 4.18 – Commercial and Government Entity Code (CAGE) requiring all SAM registrants, if owned by another entity, to identify that entity by name, CAGE code and type of ownership. CAGE codes are a five-character identifier used extensively within the Federal Government and provide for standardization of identifying a legal entity across the Federal Government.Continue Reading New CAGE Code Requirements for Contractor’s Ownership Chain

I recently co-wrote an article with John Kelly and Lindsey Fetzer that outlined three recent cases (Leidos Holdings Inc., Boeing Company, DRS Technical Services Inc.) in which government contractors were accused of noncompliance under the False Claims Act (FCA). In the article we analyze these cases and provide guidance on what government contractors can do…

Government contractors must always be vigilant of prosecution under the False Claims Act (FCA). Charges and settlements are brought and announced in the news daily against government contractors for violations of this Act. On October 30, we published a client alert, Government Contractors Beware: Increased FCA Enforcement in Government Contracts, discussing recent cases and…

In the October 2014 issue of Service Contractor magazine, I authored the article “Will ‘Innovation’ Return to the Small Business Innovation Research Program?” In the article, I outline the recent changes that were implemented to the Small Business Innovation Research (SBIR) program and highlight challenges that remain for an important R&D tool for small businesses.…

If a cloud services provider (CSP) wishes to provide their services to a federal agency they must obtain authorization and approval from the Federal Risk and Authorization Management Program (FedRAMP). As more and more CSPs have entered the FedRAMP assessment process, there has been a push to help agencies and CSPs achieve FedRAMP authorization faster. Moreover, the Office of Management and Budget mandated starting June 5, 2014, that all CSPs must be FedRAMP approved or at least in the process of getting an authority to operate prior to contracting with federal agencies. In order to assist with these efforts, GSA recently unveiled a new category to its program for cloud systems proven “FedRAMP Ready.”
Continue Reading GSA Announces New FedRAMP Category to Speed Up Approval Process

In the November 2014 issue of Contract Management magazine, I wrote an article titled “Preparation is Key to a Successful Novation” that outlines how companies can successfully transfer a federal government contract through a process called novation. In the article, I describe the common problems that can arise in the novation process and how best…

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From the Bass, Berry & Sims Blog Network

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