Government Contracts

The Government Contracts Group brings the training, experience, and business savvy needed to help our clients navigate through the thicket of federal, state, and municipal government contracts regulations.

Our attorneys are in tune with the ever-changing legislative, regulatory, judicial, and administrative environment of this complex field, and publish and lecture frequently on a range of subjects of interest to the government-contracting community.  Our experience comprises a wide range of industries, including Construction; Defense and Aerospace; Education; Federal Research; Healthcare; Information Technology; and Transportation. Our clients range from small start-ups seeking federal assistance in research and development to large defense and aerospace companies involved in major military programs.

We provide services to our clients in a variety of general procurement matters, including pre-submittal counseling; protecting data rights; country of origin requirements; government contract compliance programs; government ethics rules; small, minority-owned, and women-owned business contracting; socio-economic contract requirements; legislative assistance; selling commercial products and services to the government; GSA Schedule contracting; pre- and post-award bid protests; claims preparation and litigation; government audits and investigations; debarment and suspension; False Claims Act/whistleblower litigation; ADR and dispute resolution; public finance and privatization; federal assistance and grants; and environmental remediation.

We work closely with our clients in the proposal writing and contract and team formation stages to help avoid later disputes that exhaust resources, dampen morale, and cripple business relationships. With flexible and creative fee structures, we act as an extension of our clients' general counsel or contracts administrator, providing training, advice, form documents, and analysis. We are always "on call," prepared to address the different needs of our clients.

Audits and Investigation

Our attorneys have broad experience in organizing, advising and assisting contractors in responding to pre-award and post-award audits and investigations by the Defense Contract Audit Agency (DCAA), various agency Inspectors General, and other federal and state auditing agencies. We participate in audits as an integral part of the contractor's audit response team to improve the efficiency and quality of client audit responses and to minimize their expense and disruption.

Bid Protests

Our attorneys represent clients throughout the country in protests of solicitation and award improprieties and errors. We also assist clients in defending contract awards subject to protest including alleged violations of the Competition in Contracting Act (CICA), Federal Acquisition Regulation (FAR) and other related federal statutes and agency regulations. Our attorneys handle protests in the U.S. Government Accountability Office (GAO), federal agencies, the United States Court of Federal Claims, state administrative agencies, and federal and state courts throughout the United States.

Claims Preparation and Litigation

Our attorneys have significant experience in the analysis, evaluation, and presentation of government contract claims including breach of contract, changes, defective specifications, defective government property and equipment, delays, accelerations, suspensions, value engineering, superior knowledge, commercial impracticability, impossibility and related cost, pricing and scheduling issues.  Disputes that cannot be settled promptly by mutual agreement require case-specific management to either induce settlement or to prepare for trial. Our attorneys formulate an effective discovery and trial preparation plan so that disputed facts and issues are continuously assessed as the case moves toward trial.  We regularly appear before state and federal courts, the United States Court of Federal Claims, the various Boards of Contract Appeals, the American Arbitration Association and other administrative tribunals.

Construction and Infrastructure

We maintain a diverse practice on behalf of construction industry clients including public and private owners, developers, contractors, subcontractors, suppliers, architects, engineers, construction managers, design builders, sureties, insurers, and financing institutions. Our attorneys focus on innovative problem solving for clients. Many of our attorneys have hands-on construction experience in addition to advanced degrees in engineering or architecture.

A major component of our government contracts practice is the presentation and defense of claims for changes, defective work, suspension, interference, defective specifications, delay, acceleration, superior knowledge, commercial impracticability, and related cost, pricing and time issues.
 
Our attorneys also have extensive trial experience with safety-related design and construction, both nuclear and non-nuclear, and an understanding of the role of quality assurance and quality control in the construction process.

Contract Pricing

We help contractors respond to a broad range of pricing issues arising under fixed-price, cost-reimbursement, time-and-materials, and share-in-savings government contracts, including:

  • Advising clients about whether and how to provide cost or pricing data to the government
  • Assisting clients to prepare cost proposals for submission to the government
  • Counseling clients in connection with defective pricing and disclosure issues
  • Advising clients regarding price reduction clauses in GSA Schedule contracts

Contractor Compliance

Government contractors are held to different standards than those in the commercial marketplace. Understanding and complying with those government-specific standards can be a daunting task, even for experienced government contractors. Our attorneys have assisted clients in the following areas:

  • Ethical requirements (such as those relating to gifts and gratuities) hiring of former officials, conflicts of interest, and lobbying disclosure)

  • Socio-economic requirements (Equal Employment Opportunity reporting, small and disadvantaged business subcontracting plans)

  • Corporate compliance programs and audits

  • Pricing compliance (defective pricing, most-favored customer pricing, price adjustment clauses)

  • Cost accounting (unallowable costs, conformance to accounting standards)

  • Industrial security, including personnel and facility security clearances

Debarment and Suspension

Our attorneys have substantial experience with investigations of allegations that could lead to suspension and finally debarment. In addition, we conduct interviews, joint investigations, and compliance reviews relating to controversies involving the suspension and debarment of federal and state contractors. States, for example, when data is shared with foreign-based companies or foreign employees (even if located in the United States). Our attorneys identify and resolve potential export control problems.

Export Control

Many technologies sold to government agencies are subject to export control by either the U.S. Department of State or the U.S. Department of Commerce. Compliance issues and license requirements may be triggered even when no product leaves the U.S., for example, when data is shared with foreign-based companies or foreign employees (even if located in the U.S.). Our attorneys identify and resolve potential export control problems.

False Claims Act/Whistleblower Litigation

Our attorneys have substantial experience in civil and criminal litigation under the False Claims Act, including the whistleblower protection provisions. We conduct internal investigations, handle voluntary disclosures, and represent companies and witnesses in administrative, civil and grand jury investigations. The practice also involves formal litigation including civil and criminal jury and non-jury trials. As a related matter, our attorneys are experienced in crisis management and the design and implementation of corporate compliance programs.

Federal Assistance and Grants

We represent public grantees and contractors under federal assistance programs. Our attorneys are well versed in the applicable cost principles and standards and Office of Management and Budget ("OMB") circulars governing the administration of such grants, as well as providing counsel regarding technology transfers to or from the government, research regulatory compliance, agreements with third-party suppliers and subgrantees, and effort reporting.

GSA and Multiple Award Schedule (MAS) Contracts

We have extensive experience in counseling companies in the government's commercial sales practices, including GSA Schedule contracts and the Department of Veterans Affairs Federal Supply Schedule contracts. We assist clients with:

  • Proposal preparation

  • Negotiation of contract terms

  • Helping contractors comply with Industrial Funding Fee, the price reduction clause and other GSA Schedule contract obligations

  • Performing internal audits of compliance with GSA Schedule contract obligations

  • Advising clients on the statutory pricing requirements under the Veterans Health Care Act

  • Calculating Non-Federal Average Manufacturer Prices (non-FAMPS) and Federal Ceiling Prices (FCPs) applicable to covered drugs

  • Helping contractors respond to pre-award and post-award MAS contract audits by the Office of Inspector General

Homeland Security

The formation of the Department of Homeland Security and the promulgation of new laws and regulations related to homeland security are having a major impact on businesses, state and local governments, universities and other research institutions in the United States. Our attorneys stay up-to-date on the latest developments in Homeland Security to provide the best advice to our clients on how to navigate these risks. We are able to address a wide range of issues, from advising companies on Homeland Security grants, to assisting with issues relating to the SAFETY Act and the SAFETY Act application process.

Intellectual Property

An important concern for government contracts clients is the government's rights in inventions, proprietary drawings, schematics, practices, data, and computer software that are used, created, or modified by the client during the course of its performance under a government contract or grant. Under complex and ever changing regulations, which differ on an agency by agency basis, the government is entitled to rights to technology in part or in whole developed with government funds. Determining and negotiating the rights of prime contractors, subcontractors and vendors who are contributing technology must be well planned. We provide expert guidance in this area.  This includes recommending measures to protect pre-existing technology developed at private expense and appropriate non-disclosure agreements and reservations of rights.

International Procurements

Our attorneys regularly advise clients on the application of sometimes complex rules of origin. We help clients structure their manufacturing and sourcing plans to comply with restrictions under the Trade Agreements Act, Buy American Act, Berry Amendment, and other legislation.

Mergers and Acquisitions

We supply a variety of support services and serve as key members of the M&A team when a company with public sector contracts, grants or subcontracts is the subject of a sale or acquisition. Our services include due diligence review of existing contracts, audits of intellectual property government license rights, and drafting of pertinent clauses and disclosure schedules in the agreements memorializing the transaction. Our advice, whether to the seller or buyer, runs the gambit from compliance representations and warranties, indemnification protections, novation and change of name agreements, assignment of subcontracts, facility and personnel security clearance transfers for classified contracts, and export control issues.

Pre-Submittal Counseling

We serve our clients most effectively by recognizing, addressing and resolving procurement issues before they arise with the government. In addition, we advise clients on subcontracting relationships, teaming agreements and joint ventures. Prior to the submission of a proposal, bid or quotation, our attorneys review requests for proposals, invitations for bids, and other solicitation documentation for unusual contract risks, ambiguous requirements, rights in technical data and computer software, and for possible truth in negotiation, price reduction and related compliance problems. We review clients’ proposals, bids or quotations to ensure inclusion of all necessary information (including appropriate certifications). In addition, our attorneys assist clients in the development of company-wide procurement programs, policies and procedures.

Small, Minority-Owned, and Women-Owned Businesses

Federal and state governments have adopted incentives in the contracting and grant programs for small, minority-owned, and women-owned businesses. Examples include the Small Business Innovative Research (SBIR) Program under which research and development monies are specifically allotted to grants to small businesses for the development of new and innovative studies, research, and technology; and the Historically Underutilized Business Zone (HUBZone) program. Our attorneys advise clients on the availability of such programs and the conditions under which they operate and assist them in strategically utilizing program benefits.

State and Local Contracting

Selling to state and local governments can be an important component of many of our client's businesses. However, the challenges present in selling to state and local governments are numerous and varied. Our attorneys regularly guide clients through the many facets of state and local procurement laws, regulations, and policies. Additionally, our attorneys advise public sector state and local clients on procurement-related issues, including:

  • Requests for proposals and invitations for bids involving both traditional and alternative procurement methods
  • Defense of bid protests filed by disappointed bidders
  • Public records requests
  • Litigation and dispute resolution
  • Procurement policy issues

Statutory and Regulatory Guidance

Our attorneys regularly assist clients in interpreting statutory and regulatory requirements and provides advice on the applicability of these requirements to procurement opportunities and contract performance obligations. To assist clients in successfully meeting their legal obligations and the government’s needs, we maintain communications with key personnel in the government agencies, recommend new regulatory interpretations, and propose changes to existing regulations in order to serve client interests.
 

Representative Matters

When LePage’s came to McCarter & English, the Postal Regulatory Commission (PRC) had just issued an Order restricting the Postal Service from engaging in certain licensing activities which negatively impacted a licensing agreement LePage’s had reached with the Postal Service.  Through the work of Daniel J. Kelly, David Himelfarb, and Bonnie Vanzler, McCarter was able to implement a multi-prong offensive directed at overturning the PRC’s Order.  On the litigation front, McCarter successfully appealed the PRC’s Order to the United States Court of Appeals for the District of Columbia.  Not only did the Court of Appeals rule in LePage’s favor, finding the agency’s decision to be arbitrary and capricious, but the Court also awarded LePage’s its attorneys’ fees under the Equal Access to Justice Act (EAJA), concluding that the agency’s decision was not substantially justified.  McCarter then represented LePage’s before the PRC on remand and convinced the PRC to permit the licensing activities that were the subject of LePage’s license to continue.  Finally, working closely with Winning Strategies Washington, a Washington, D.C.-based government relations firm, McCarter was able to help LePage’s obtain an extension of its exclusive contract with the Postal Service for the sale of Postal Service branded mailing and shipping supplies.