Wiley Rein LLP


Government Contracts | GOVERNMENT CLAIMS AND TERMINATIONS

The Government has become increasingly aggressive in asserting its legal rights against contractors in such areas as contract performance, defective pricing, cost allowability, default terminations, and data rights.  We regularly counsel and defend contractors in these areas, which can involve a host of goals and strategies, from negotiated settlements to litigation of claims under the Contract Disputes Act.  Especially in those cases where the Government has asserted its rights and placed the contractor on the defensive, the contractor’s strategies for responding must balance legal options in light of both short- and long-term business objectives.  Wiley Rein helps clients achieve practical results.

Our representative experience includes situations in which the Government invokes its rights first—such as helping a contractor respond to a government audit report, a notice of cost disallowance, or a cure/show-cause notice.  For example, Wiley Rein attorneys have:

  • Negotiated a no-cost termination for convenience for a contractor that was on the verge of defaulting on performance.
  • Successfully responded to a show-cause notice threatening to terminate a multi-billion-dollar program for default, leading to the favorable restructuring of the program. 
  • Successfully represented a major contractor in the convenience termination of a multi-billion-dollar classified program.
  • Prepared legal justification in response to a customer's threat to terminate for default a program for the commercial variant of a U.S. Department of Defense (DOD) aircraft, resulting in payment to our client of nearly $40 million.
  • Prepared a multi-volume response to a price reductions audit report on a U.S. General Services Administration (GSA) multiple award schedule contract.
  • Prepared an extensive response to a proposed default termination of a multi-billion-dollar DOD program and successfully negotiated a mutually agreeable settlement.
  • Convinced the Defense Contract Audit Agency (DCAA) to withdraw a notice of non-compliance with the Cost Accounting Standards (CAS).
  • Responded to DCAA allegations of defective pricing.
  • Assisted a client in successfully defending against a DCAA claim of unreasonable executive compensation.
  • Worked with a major accounting firm in preparing an internal audit report resulting in the exoneration of our client despite a principal subcontractor having admitted to engaging in erroneous billing.
  • Negotiated no-cost termination for convenience with mutual releases on behalf of a contractor that could not obtain necessary funding to perform recently awarded contract as a result of downturn in financial markets.







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GOVERNMENT CONTRACTS ISSUE UPDATE

ISSUE: SPRING 2014

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