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DAM Contractor's Underbidding Insufficient For FCA Liability

Client Alert | 1 min read | 01.21.05

Affirming summary judgment, the D.C. Circuit in U.S. ex rel. Bettis v. Oderbrecht Contractors (Jan. 11, 2005) held that evidence that a dam contractor (1) underbid, (2) reaffirmed its underbid, and (3) claimed that it would use cost-saving measures it never employed did not permit the conclusion that the contractor fraudulently induced the Army Corps of Engineers to award it the contract. The Court acknowledged that claims submitted for payment under a contract that was fraudulently induced can give rise to civil False Claims Act liability, but found in this case that the contractor's underbid was not a promise that its estimated costs were accurate, only that it would perform the dam work at the unit prices it bid, such that submission of claims for payment under the contract, including claims for equitable adjustments above the contract price, were not false claims.

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Client Alert | 4 min read | 09.15.26

GAO Indicates Reasonable Conflict of Interest Investigation Must Include Inquiry of Involved Firm

The U.S. Government Accountability Office’s (GAO) recent decision in Viderity Inc.—Costs, B-424422.5, Sept. 1, 2026, offers useful insight into what constitutes a legally sufficient conflict of interest investigation. The decision arose in an unusual procedural posture: Viderity initially protested, alleging that an agency evaluator had a personal conflict of interest. After the agency took corrective action, Viderity filed a cost entitlement claim requesting that GAO direct the agency to reimburse Viderity’s protest costs. In evaluating that claim, GAO assessed whether Viderity’s underlying protest ground was “clearly meritorious.”...