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Agency Liable For Negligent Estimate In LOE Contract

Client Alert | less than 1 min read | 10.07.04

In Sanford Cohen & Assocs., Inc. (Sept. 8, 2004), the Interior BCA held the EPA liable for a negligently-prepared estimate included in a level-of-effort (LOE) contract when the EPA ordered significantly less than its estimated quantities for each performance period. Because the contractor reasonably relied on the EPA's original estimate in arriving at its offered prices, the board ordered an equitable adjustment and condemned both the "egregious" manner in which the EPA unilaterally modified the contract language to shirk liability for lesser orders and the EPA's "essential[ly] unfair[]" but routine practice of ordering substantially less than 90% of the specified LOEs in its contracts.

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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....