Insights

In Portland Mint v. United States, Case No. 22-2154, the Court of Appeals for the Federal Circuit reinstated the Portland Mint’s claim that the government breached an implied-in-fact contract to pay the Portland Mint for coins tendered under the government’s Mutilated Coin Redemption Program.  The Court’s decision is a reminder of the jurisdictional importance in pleading a contract as implied-in-fact rather than implied-in-law. 

In Lockheed Martin Aeronautics Company, ASBCA No. 62209 (a C&M case), the Armed Services Board of Contract Appeals (Board) awarded $131,888,860 in damages plus applicable interest in connection with Lockheed Martin’s claim for the cumulative disruptive impacts it experienced in performing over and above work on the C-5 Reliability Enhancement and Re-Engining Program.  The underlying contract related to the modernization of a fleet of C-5 Galaxy Aircraft, which is the largest U.S. military transport plane and has provided heavy intercontinental strategic airlift capabilities since the 1970s.  The Board sustained the appeal after finding that Lockheed Martin had met its burden of proof on entitlement and quantum, using the measured-mile methodology, which compares an affected period of performance with an unaffected period.  This case is a prime example of marshalling fact and expert witness testimony, and documentary evidence, to demonstrate the impacts of cumulative disruption on performance to justify causation and damages.

In MLU Services, Inc. v. Department of Homeland Security, CBCA No. 8002, the Civilian Board of Contract Appeals (Board) denied a Federal Emergency Management Agency (FEMA) motion to dismiss for failure to prosecute, which the agency filed just four days after MLU failed to timely submit one of its initial pleadings.

Crowell & Moring is pleased to announce the launch of our Government Contracts Breakfast Series. All of the sessions will be held in Northern Virginia and focus on issues most important to government contractors. Our January session is described below. When performing government contracts, contractors frequently experience performance challenges such as delays; increased performance costs attributable to government action; costs resulting from government-initiated contract termination; and costs of remediating certain environmental pollution and toxic tort litigation. Each of these add time or additional expense for which the government may have a legal obligation to pay. Join us as we discuss the process of filings claims and REAs, including a discussion of formal and informal dispute resolution under government contracts. We will provide a CLE certificate of attendance and other materials to use in seeking continuing education credits. Registration begins at 8:00 am.

Prime contractors and their subcontractors often find themselves in disputes based on the actions of the contracting agency. Join this event as a panel of experts discuss sponsored claims, and share their insights for prime contractors and subcontractors performing work on federal projects who are faced with the prospect of litigating a sponsored claim. They will discuss some of the unique issues associated with sponsored claims, and ways to navigate and mitigate those risks. This is a program no prime or sub should miss!

For nearly 6 months, the Coronavirus pandemic has caused disruptions across nearly all industrial sectors, including the government contracting industry.  As contractors have attempted to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a constantly shifting landscape, Congress provided an additional avenue of relief to certain contractors dealing with COVID-19 related impacts.  Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided assistance in connection with certain disruptions in contractor performance arising from the COVID-19 pandemic.  Now, as the Government fiscal year draws to a close, many contractors are considering whether and when to submit potential Claims and REAs – including Claims and REAs triggered in part by COVID-19 related issues – and how best to position themselves to recover schedule and cost impacts triggered by COVID and non-COVID related causes.

The Coronavirus pandemic continues to cause disruptions across nearly all industrial sectors, including the government contracting industry. As contractors attempt to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a constantly shifting landscape, Congress has provided an additional avenue of relief to certain contractors dealing with COVID-19 related impacts. On March 27, Congress passed the COVID-19 Stimulus Law. Section 3610 of the legislation provides assistance in connection with contractor employees that (1) cannot perform work on certain sites during the COVID-19 pandemic and (2) cannot telework because their job duties cannot be performed remotely.

The COVID-19 Pandemic continues to cause disruptions across nearly all industrial sectors, including the government contracting industry.  As contractors attempt to respond to challenges in providing support to government customers, meeting contract and staffing requirements, and adhering to contract terms and a flurry of new federal, state and local directives, companies should be aware of how to minimize disruptions, preserve their rights, and avoid bad practices that could increase post-pandemic legal risk.  

This week's special edition is an extended dialogue about the Board’s recent application of the Sovereign Acts Doctrine to requests for recovery of cost resulting from Government-imposed COVID restrictions. In addition to discussing the recent decisions, host Skye Mathieson provides perspective on lessons learned and the broader implications of these decisions and the Sovereign Acts Doctrine.  Crowell & Moring's "Fastest 5 Minutes" is a biweekly podcast that provides a brief summary of significant government contracts legal and regulatory developments that no government contracts lawyer or executive should be without.