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CFC Denies Fraud Counterclaims for Lack of Scienter

Client Alert | 1 min read | 05.08.13

In response to a contractor's CDA claim for the cancellation of two purchase orders for printed circuit cards when the contractor manufactured the parts itself rather than providing the parts from specified approved sources, the government in Ulysses, Inc. v. U.S. (Apr. 30, 2013), brought counterclaims for fraud under the False Claims Act, the fraud provision of the Contract Disputes Act, and the Forfeiture of Fraudulent Claims Act. The CFC denied them all, holding that the contractor did not act in reckless disregard of the truth or falsity of its claims because neither the RFQ nor the contractor's quotation leading to the purchase order specified a particular source and, therefore, its erroneous interpretation of the purchase orders "was not so implausible as to be frivolous" and because it had advised the government that it believed it was an approved source, "making this a classic case for application of the Government knowledge defense."


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Client Alert | 4 min read | 06.25.26

Twin Executive Orders Seek to Spur Quantum Leap in Technology and Cybersecurity

On June 22, 2026, President Trump signed two executive orders, “Securing the Nation Against Advanced Cryptographic Attacks” (Quantum Security EO) and “Ushering in the Next Frontier of Quantum Innovation” (Quantum Innovation EO), marking the most significant federal action on quantum technology since the Quantum Computing Cybersecurity Preparedness Act of 2022, which directed agencies to harden their information systems against quantum-enabled hacking. The orders seek to speed the development of quantum computers, which are advanced processors that can calculate multiple possibilities simultaneously and thus solve problems exponentially faster than traditional computers. At the same time, the orders look to protect against the danger that quantum technology can “break” traditional encryption by easily decoding it. Of particular note for government contractors, the Quantum Security EO directs agencies to update federal acquisition regulations to require contractors by 2031 to adopt information processing standards that resist quantum-enabled codebreaking....

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