Government Contracts

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CFIUS Guidance Alert

On December 8, 2008, the U.S. Department of the Treasury published in the Federal Register a notice providing guidance on the newly implemented amendment to Section 721 of the Defense Production Act of 1950.

Client Alert | December 18, 2008

New Status of Forces Agreement Subjects Government Contractors to Iraqi Law

On November 16, 2008, the White House and the Iraqi Cabinet approved a Status of Forces Agreement (SOFA), subject to the approval of the Iraqi Parliament.  On November 27, 2008, the Iraqi Parliament approved the SOFA by a vote of 149 to 35.  This new SOFA subjects U.S.

Client Alert | December 1, 2008

E-Verify Employment Eligibility Verification System Mandatory for Federal Government Contractors as of January 15, 2009

On June 6, 2008, the President amended Executive Order 12989 to require federal government contractors to "agree to use an electronic employment eligibility verification system designated by the Secretary of Homeland Security," which Secretary Chertoff designated to be the "E-Verify" system.  E-Verify is a system operated by DHS in partnership with the Social Security Administration (SSA) that allows employers to use their own computers and Internet connections to verify electronically the employment eligibility of their newly hired employees.  There is no fee for use of this service.

Client Alert | November 18, 2008

Department of the Treasury Releases Final Regulations Governing the Committee on Foreign Investment in the United States (“CFIUS”)

On November 14, 2008, the U.S. Department of the Treasury, on behalf of the Committee on Foreign Investment in the United States, issued final regulations governing CFIUS.  This follows Treasury's issuance of proposed regulations on April 21, 2008.  The period for public comment ended on June 9, 2008.

Client Alert | November 18, 2008

New Federal Regulation Requires Mandatory Disclosure and Amplified Compliance Programs for Government Contractors

A final rule issued on November 12, 2008, amends the Federal Acquisition Regulation ("FAR") to require mandatory disclosure by federal government contractors of certain violations of federal criminal law and the civil False Claims Act.  (Text of final rule available here.)  The new rule also mandates that certain federal government contractors create a business ethics awareness and compliance program, as well as an internal control system.  Federal government contractors that currently have compliance and control systems in place will find it necessary to review and potentially to update their existing programs.  Contractors that violate the disclosure and compliance mandates included in the new rule face possible suspension or debarment.  (For more infor

Client Alert | November 13, 2008

Department of Defense Issues Interim Rule Amending DFARS to Add Export Compliance Provisions

The United States Department of Defense ("DoD") has issued an interim rule amending the Defense Federal Acquisition Regulation Supplement ("DFARS") Parts 204, 235, and 252 to address contractor requirements to comply with export control laws and regulations when performing DoD contracts.

Client Alert | July 25, 2008

2008 Mid-Year FCPA Update

The frenetic pace of Foreign Corrupt Practices Act ("FCPA") enforcement set in 2007 has carried through the first half of 2008.  Mid-year prosecutions are up – substantially so – from last year's record-setting totals.  And corporate disclosures and media reports of ongoing investigations evidence that this trend of continually increasing enforcement is here to stay for the near future.  This client update provides an overview of the FCPA and other foreign bribery enforcement activities during the first half of 2008, a discussion of the trends we see from that activity, and practical guidance to help companies avoid or limit liability under these laws.  A collection of Gibson Dunn's publications on the FCPA, including prior enforcement updates and more in-

Client Alert | July 7, 2008

Choice of Forum for Government Contract Disputes

Partner Karen Manos is the author of "Choice of Forum for Government Contract Disputes" [PDF] published in the July 2008 issue of Government Contract Costs, Pricing & Accounting Report , published by Thomson Reuters/West.Reprinted with permission, © July 2008, Thomson Reuters/West.

Client Alert | July 1, 2008

U.S. Supreme Court Narrows the Scope of the False Claims Act

On June 9, 2008, the U.S. Supreme Court issued a unanimous opinion in Allison Engine Co. v. United States ex rel. Sanders that significantly narrowed the scope of the False Claims Act.

Client Alert | June 11, 2008

President Bush Acts to Make E-Verify Employment Eligibility Verification System Mandatory for Federal Government Contractors

On June 9, 2008, the President amended Executive Order 12989 to require federal government contractors to "agree to use an electronic employment eligibility verification system designated by the Secretary of Homeland Security"--the "E-Verify" system.

Client Alert | June 11, 2008

ITAR Update: Technical Data Found on the Internet May Not Be Considered in the Public Domain

The Directorate of Defense Trade Controls ("DDTC") recently issued guidance to an exporter of defense articles that military photos downloaded from the Internet are not automatically in the public domain as defined by ITAR 120.11.

Client Alert | May 9, 2008

Department of the Treasury Releases Proposed Regulations Governing the Committee on Foreign Investment in the United States (“CFIUS”)

On April 21, 2008, the Department of the Treasury released a set of proposed regulations governing mergers, acquisitions and takeovers by foreign persons.

Client Alert | May 7, 2008

National Security Implications of Foreign Investment in U.S. Government Contractors

Gibson Dunn partners Joseph West and Judith Lee and Associates Christyne K. Brennan, Dave M. Wharwood, and Patrick F. Speice, Jr. are the authors of "National Security Implications of Foreign Investment in U.S.

Client Alert | October 31, 2007

Does The APA Still Apply To Government Contractors?

Gibson Dunn partner Karen Manos is the author of "Does The APA Still Apply To  Government Contractors?" [PDF] which appears in  2-5 Cost, Pricing & Accounting Report 44 (Sept.

Client Alert | September 1, 2007

The FCPA Enforcement Explosion Continues: Nine New Enforcement Actions in 2007 and Approximately 100 Active Investigations

The Foreign Corrupt Practices Act (“FCPA”) is 30 years old this year, and the anniversary is being “celebrated” with an explosion of enforcement activity by both the Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”).

Client Alert | July 26, 2007

Cost & Pricing Issues

Gibson Dunn partner Karen Manos is the co-author of "Cost & Pricing Issues" [PDF] which appears in  the West Group Government Contracts Year in Review 2007.  

Client Alert | March 30, 2007

Defining “Increased Costs in the Aggregate”

The Federal Acquisition Regulation, as amended in 2005, prohibits contractors from combining multiple cost accounting changes that take effect on the same day unless all of the changes result in increased costs to the government.

Client Alert | March 15, 2007

COFC Reconsiders CAS 413 Ruling

Gibson Dunn partner Karen Manos is the author of "COFC Reconsiders CAS 413 Ruling" [PDF] which appears in  49-9 Government Contractor ¶ 95.  

Client Alert | March 7, 2007

2006 Year-End FCPA Update

This client update provides an overview of Foreign Corrupt Practices Act ("FCPA") enforcement activities in 2006, a discussion of the trends we see from that activity, and practical guidance to help companies avoid or limit FCPA liability.FCPA OverviewThe FCPA’s anti-bribery provisions make it illegal to make payments of money or anything of value to any foreign government official or foreign political party in order to obtain or retain business or secure any improper advantage.  The anti-bribery provisions apply to "issuers," "domestic concerns," and "any person" that violates the FCPA while in the territory of the United States.  The term "issuer" covers any business entity that is registered under 15 U.S.C.

Client Alert | February 7, 2007

Rule Change Significantly Alters Civil Settlement Negotiation Environment; Permits Government to Use Civil Settlement Statements in Criminal Prosecutions

Although there has been much attention focused on both recent changes to the Federal Rules of Civil Procedure governing discovery of electronic documents, and the proposed changes to Federal Rule of Evidence 502, governing the scope of the attorney-client privilege, clients should not overlook another recent Federal Rule change of great significance.

Client Alert | February 5, 2007

Congress Proposes Legislation to Criminalize War Profiteering

Congress has introduced a bill that, if enacted, would significantly elevate the financial and legal risks for overseas government contractors and increase the penalties for fraud and abuse in Iraq. On January 4, 2007, Sen.

Client Alert | January 18, 2007

Recovery of Interest Against the Government

Gibson Dunn partner Karen Manos is the author of "Recovery of Interest Against the Government" [PDF] which appears in the November 2006 issue of Cost, Pricing & Accounting Report.

Client Alert | November 1, 2006

Department of Justice Establishes New Task Force to Combat Fraud In Government Contracting

Earlier this week, the United States Department of Justice announced the formation of a new National Procurement Fraud Task Force intended to increase detection and prosecution of fraud in government contracting.  Led by the Criminal Division of the Department of Justice, the task force will create a partnership with the U.S.

Client Alert | October 13, 2006

Department of Defense Proposed Rule Highlights Need for Effective Export Compliance Program

The Department of Defense (DoD) on August 14, 2006, published a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to address requirements for preventing the unauthorized disclosure of export-controlled information and technology under DoD contracts.

Client Alert | August 14, 2006

Suspension & Debarment

Gibson Dunn partners Joseph West and Timoth Hatch are the authors of "Suspension & Debarment" [PDF] which appeared in the August 2006 issue of Briefing Papers.

Client Alert | August 1, 2006

Estoppel Against The Government: What Does ‘Affirmative Misconduct’ Have To Do With It?

Gibson Dunn partner Karen Manos is the author of "Estoppel Against The Government: What Does 'Affirmative Misconduct' Have To Do With It?" [PDF] which appears in the July 2006 inaugural issue of Government Contract Costs, Pricing & Accounting Report, a bi-monthly newsletter published by Thomson/West. Reprinted with permission, © July 2006 Thomson/West.

Client Alert | July 18, 2006

Shareholder Taxes On Dividends Are Not Allowable Costs For Subchapter S Corporation, Federal Circuit Holds

Gibson Dunn partner Karen Manos is the author of "Shareholder Taxes On Dividends Are Not Allowable Costs For Subchapter S Corporation, Federal Circuit Holds" [PDF] which appears in the February 22, 2006 issue of  The Government Contractor.  

Client Alert | February 22, 2006

Sarbanes-Oxley and Government Contractors: Beyond the Regulatory Burden We Knew

Gibson Dunn associate Michael Scanlon is co-author of "Sarbanes-Oxley and Government Contractors: Beyond the Regulatory Burden We Knew" [PDF], published in the Winter 2006 issue of The Procurement Lawyer.© 2006 American Bar Association.

Client Alert | February 13, 2006

Cost and Pricing Issues – West Government Contracts Year in Review Conference

Gibson Dunn partner Karen Manos is the author of "Cost and Pricing Issues" [PDF], a brief from the 2005 West Government Contracts Year in Review Conference.  

Client Alert | February 1, 2006

OFCCP Regulations Require Federal Contractors to Track Data on Internet Applicants

Federal regulations mandate that covered federal contractors and subcontractors collect information about the gender, race and ethnicity of "applicants" for employment.

Client Alert | December 12, 2005

U.S. Export Control Compliance Requirements for Government Contractors

November 2005Partners Joseph West and Judith Lee and associate Jason Monahan are authors of "U.S. Export Control Compliance Requirements for Government Contractors" [PDF] published in the November 2005 issue of Briefing Papers, a Thomson/West publication.Reprinted with permission, Briefing Papers, © 2005 Thomson/West.

Client Alert | November 30, 2005