Government Contracts Brief – Week of February 17, 2020

Correcting a Defective CDA Certification

Two decisions last year, one from the ASBCA and the other from the Federal Circuit, clarified that defective CDA certifications may be corrected so long as the correction is made prior to a decision being issued. Importantly, the Federal Circuit case indicated a defect in certification may be corrected even if it was made intentionally or in reckless disregard of the certification requirements.

Mitigating False Claims Act Liability

The Department of Justice recovered over $3B in FCA cases in FY 2019, a significant portion of which was related to procurement fraud. If a contractor discovers misconduct that may subject it to FCA liability, speak with counsel to determine the viability of voluntary disclosure, taking corrective action, and how to take remedial steps through implementing or improving compliance programs. DOJ may offer credit in the form the reduction in damages and penalties for this type of cooperation.

Ownership Disclosure For System For Award Management

Contractors owned by another entity (as opposed to individuals) must disclose the ownership and CAGE code of its immediate owner and highest-level owner in the System for Award Management. Immediate owner is an entity with direct control of the contractor. Highest-level owner is an entity that owns or controls one or more entities that control an immediate owner of the contractor. Individuals are neither immediate or highest-level owners.

 

Attorney Kristi Morgan AronicaOur government contracts briefs, reports, and articles are published by Attorney Kristi Morgan Aronica. She serves as counsel to government contractors and subcontractors throughout Texas and nationally.