Compliance

Bass, Berry & Sims attorney Bob Horton authored the article, “Affirmative Action Plans – Your Common Questions Answered,” that was published by Contract Management magazine in the January 2015 issue. In the article, Bob answers some of the most common questions that are asked when a company is tasked with preparing an affirmative action plan.

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

On September 24, 2014, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs published a Final Rule in the Federal Register that makes changes to the regulations implementing the Vietnam Era Veterans’ Readjustment Assistance Act, as amended (VEVRAA) at 41 CFR Part 60-300.

VEVRAA prohibits federal contractors and subcontractors from discriminating in employment against protected veterans and requires these employers to take affirmative action to recruit, hire, promote, and retain these veterans.   Generally, VEVRAA requires Federal contractors and subcontractors to annually report on the total number of their employees who belong to the categories of veterans protected under VEVRAA and the total number of those protected veterans who were hired during the period covered by the report.  The new rule strengthens the affirmative action provisions of the regulations to aid contractors in their efforts to recruit and hire protected veterans and improve job opportunities for protected veterans.Continue Reading New Reporting and Data Requirements for Veteran Hiring to Begin in 2015

The Court of Federal Claims in American Gov’t Props. & Houma SSA v. United States recently restated the general prohibition on assignment of federal government contracts and laid out the necessary steps contractors must follow in order to avoid an improper assignment of a lease agreement.

The case involved a contract to design, build and then lease to the Social Security Administration an office building in Houma, Louisiana. The General Services Administration (GSA) terminated the contract for default citing lack of progress. The plaintiffs brought suit alleging termination was improper and sought damages as a result of the alleged breach of contract. The defendant moved to dismiss on the grounds that plaintiff lacked standing to maintain suit against the government due to an improper assignment of the contract. The defendant alleged that the contract was assigned to Houma SSA, LLC (Houma) by American Government Properties (AGP), the original contracting party in violation of the Contracts Act.Continue Reading Can a contractor assign their leasing agreement with the federal government to another party?