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Sample Tasks Must Be Reasonable Proxy For Entire Contract

Client Alert | 1 min read | 06.08.06

Holding that a cost realism analysis must provide a reasonable basis for estimating the cost to the government of an offeror's performance, in Metro Machine Corp . (May 3, 2006, http://www.gao.gov/decisions/bidpro/ 2978792.pdf) GAO overturned the agency's cost realism evaluation because, while sample tasks can provide a reasonable basis to assess the relative costs of competing proposals, the sample tasks used by the agency in this case were not representative of the contract work.  The awardee had proposed a subcontractor with labor rates higher than the prime contractor's to perform a significant portion of the work, but, because that subcontractor had not been included in the proposed solution for any of the sample tasks, the subcontractor's high labor rates were nowhere reflected in the cost realism evaluation.

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Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....

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