1. Home
  2. |Insights
  3. |Board Rejects Claim Based on Certain Fiscal Law Violations

Board Rejects Claim Based on Certain Fiscal Law Violations

Client Alert | 1 min read | 06.12.17

In Parsons Government Services, Inc. (ASBCA No. 60663, May 3, 2017), the Board dismissed Parsons’ $21 million claim because both contractual allegations turned on fiscal law provisions that did not entitle Parsons to relief. First, Parsons argued that the contract was void ab initio, entitling Parsons to quantum meruit, because “the government should have awarded the contract as a construction contract appropriating MILCON funds [pursuant to 10 U.S.C. §§ 2801 et seq.] instead of a supply and services contract using O&M funds.” Second, Parsons argued that the government “violated the implied duty of good faith and fair dealing by depriving Parsons of its reasonable expectations” of the necessary Congressional oversight and more stringent terms consistent with a MILCON-funded contract….” The Board rejected both arguments under Federal Circuit precedent, finding that the statutory MILCON provision underlying Parsons’ claim did not provide a private right of action for contractors to sue because the primary intended beneficiary of the statute was the government. 

Insights

Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....