Left at the Altar: What to do if Key Personnel Proposed for a Service Contract Break their Commitments?

Many service contracts require that certain jobs, i.e., “key positions,” be held by highly qualified personnel dedicated to the project. So, what happens if that rock star project manager you spent months recruiting for a “key position” bails out on you in the middle of the competition to win the very contract the rock star was proposed to manage?

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In a Qui Tam Case Where It Is the Real Party in Interest, the Government Can Be Responsible for the Contractor's Legal Fees Under the Spearin Doctrine

The Government has several avenues to pursue damages when a contractor commits fraud, including bringing its own False Claims Act suit or joining a proxy qui tam lawsuit. But what happens when the Government’s mistake leads to a contractor’s damages? In a recent case, a contractor invoked the so-called Spearin doctrine to recover legal fees from an erroneous qui tam lawsuit.

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Avoiding Exemption Classification Mishaps When Confronting Covid-19 Financial Pressures and Salary Reductions

Employers facing the pressure of Covid-19 or different business slowdown, and considering a reduction of exempt employee pay and hours of work, may be relieved to know that a bona fide reduction of hours due to financial exigencies will not prevent an employee from still qualifying as exempt. if still paid over the miminum salary threshold.

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COFC Rejects Sole Source Procurement to Replace Out-of-Favor Incumbent

The Court of Federal Claims sustained the protest of a contractor that argued that the Government could not hire a replacement contractor through the use of an improperly justified sole source acquisition. The Court set aside the new award—a result that likely will require the Government to continue working with a contractor with which it allegedly was dissatisfied. Should an agency have the ability to make a change using a sole source procurement? In the commercial world, feathers might get ruffled, but a jilted vendor wouldn’t be able to get a court to throw out a replacement. In our world, it’s all different.

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Drill, Baby, Drill – Overlapping Coverage of Drilling Work under the Service Contract Act and Davis-Bacon Act

Drilling work presents a a perrenial issue of which prevailing wage law is in play. One of the most challenging parts of wage and hour law revolves around the overlap of Service Contract Act (“SCA”) and Davis-Bacon Act (“DBA”) coverage. It is entirely possible for an employee doing the same physical drilling activity to be covered by a different wage law on the next contract.

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A Department of Labor No Brainer – Removing Arbitrary Restrictions Concerning the “retail concept.”

Effective immediately on May 19, 2020, the Department of Labor (“DOL”) published a new final rule repealing some of their old interpretive guidance to clarify which businesses may or may not have a “retail concept.” under the outside sales exemption of the Fair Labor Standards Act (“FLSA”). After criticism from the community and some courts, the DOL has since seen fit to remove the opaque non-exhaustive lists of eligible and ineligible work from their regulations.

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COVID-19 Compliance: Hurry Up and Slow Down

The blizzard of COVID-19 related contracting activity poses considerable compliance risks. But, federal contractors shouldn’t be discouraged to be a part of our shared national mission to cope with this pandemic—just hurry up and wait long enough to consider how you’re responding under the circumstances. By doing so, hopefully you can avoid the painful question “what were they thinking?”

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Can Federal Contractors Offset Coronavirus Leave or Avoid Paying H&W Benefits Thereon: No, Maybe, Whatever!

Under The Families First Coronavirus Response Act (“FFCRA”), employers must pay the coronavirus leave in addition to any other leave requried by the prevailing wage laws. There is no credit or offset. As to whether government contractors must also pay additional health and welfare benefits, on top of the virus leave, for the time being that ball is up in the air, awaiting DOL clarification, although prudent employers may decide to pay it nonethless in the interim given the uncertainty.

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OFCCP Issues National Interest Exemption from Certain Affirmative Action Obligations

OFCCP issued an exemption for certain new coronavirus related contracts providing “relief” from certain parts of Executive Order 11246 (EO 11246), as amended, Section 503 of the Rehabilitation Act (Section 503), as amended, and Section 4212 of the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), as amended. Generally, contractors performing under a covered contract no longer have to abide by the sections that require affirmative action to ensure the hiring of employees without regard to their sex, sexual orientation, religion, color, race, disability status, or veteran status. However, this waiver only applies to the exempted contracts.

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Coronavirus (COVID-19) Policy and Guidance--Drinking from a Fire Hose

The COVID-19 pandemic has thrown virtually every routine out the window as the nation struggles to cope with a crisis that defies description. The routines of government contracting likewise are in a state of suspension where agencies and their contractors are struggling to find a new normal. Indeed, every day sees new guidance and directives regarding how to manage in the COVID-19 environment. On Monday (March 30), the Department of Defense released a memo that urges a reasoned approach to addressing these disruptions by making it clear that Contracting Officers are trusted and empowered to make contract adjustments to address these disruptions.

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What Me Worry -- New WHD Guidance Issued on Coronavirus Leave Requirements

The U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) issued new guidance and posting requirements for the coronavirus leave requirements on March 26, 2020. Earlier this week, Congress enacted legislation which requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Families First Coronavirus Response Act (“FFCRA” or “Act”) requirements go into effect next Wednesday April 1, 2020.

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