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Bad Estimates Support Constructive Change Without Proof of Government Negligence

Client Alert | less than 1 min read | 07.10.13

In IAP World Servs., Inc. v. Dep't of Treasury (June 20, 2013), the Civilian Board of Contract Appeals held the government liable when a maintenance contractor's service calls took longer to perform than calls in historical data furnished to prospective offerors and the government had said the historical data were a "reasonable basis" for firm-fixed-price proposals. Finding that the contractor had relied on the faulty data to price its proposal and that the contractor need not prove government negligence, the CBCA decided that the longer service calls were a constructive change to the contract and awarded the contractor its increased costs of performance.


Insights

Client Alert | 4 min read | 08.25.26

DOJ Signals Increased Antitrust Scrutiny of Algorithmic Pricing in Willow Bridge Decision

Algorithmic pricing tools commonly used by businesses to increase efficiency and profits are under increasing antitrust scrutiny. This summer, federal regulators, state attorneys general, and state legislatures grappled with competing businesses providing nonpublic, competitively sensitive data to common algorithmic platforms. The Third Circuit deepened an emerging circuit split with the Ninth Circuit on algorithmic pricing liability, reviving antitrust claims against Atlantic City casino-hotels in a decision with direct implications for any company that uses a common pricing platform. See Crowell’s recent client alert. And New Jersey enacted two landmark laws—the FAIR Act and the Fair Price Protection Act—directly regulating algorithmic rent-setting and surveillance pricing. See Crowell’s recent client alert....