1. Home
  2. |Insights
  3. |ASBCA Rules that Navy’s Desires Are Not an Option

ASBCA Rules that Navy’s Desires Are Not an Option

Client Alert | 1 min read | 02.13.19

In Fluor Federal Solutions (Jan. 10, 2019), the ASBCA agreed with Fluor that the Navy erroneously modified the terms of a contract option and granted summary judgment to Fluor. The Navy argued that it had the right to make the modification, which reduced the amount it paid for services Fluor provided at four military bases for the option year. The Board concluded the modification could only be made with proper documentation of the rationale behind the change. As the Navy failed to provide such documentation, the Board held that the modification to exercise the option was “unenforceable” (as opposed to a “defective” option). The ASBCA awarded Fluor $14.8 million, the difference between Fluor’s estimate of its costs to perform the modification (plus reasonable profit) and the amount the Navy awarded for the contact option. Fluor’s estimate was based on its actual costs to perform the contract in the prior year. 


Insights

Client Alert | 4 min read | 04.09.26

DOJ Establishes National Fraud Enforcement Division

On April 7, 2026, Acting Attorney General Todd Blanche issued a memorandum establishing the National Fraud Enforcement Division (NFED) within the U.S. Department of Justice (DOJ). This new division will be dedicated to the centralized, coordinated investigation and prosecution of fraud against taxpayer dollars and taxpayer-funded programs. AAG Blanche acknowledged that, while DOJ has a “storied history of combatting fraud,” DOJ has “never adopted a comprehensive and coordinated approach to investigating and prosecuting fraud against taxpayer dollars and tax-payer funded programs.” The NFED was created to close that gap with its core mission being to “zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.”...