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Decision Signals Increased SBA Scrutiny of Size Status

Client Alert | 1 min read | 04.16.07

In Size Appeal of Ross Aviation, Inc., SBA No. SIZ-4840, March 07, 2007, the SBA’s Office of Hearings and Appeals (“OHA”) reversed its earlier decision in Size Appeal of Spectrum Landscape Services, Inc., SBA No. SIZ-4313 (1998), and expanded the scope of its review. Basing its reversal of position on the objective of promoting the integrity of the procurement process, OHA held that “[a]part from contract-specific issues (e.g., ostensible subcontractor and non-manufacturer rule), OHA will no longer dismiss automatically an unsuccessful offeror’s appeal as moot after contract award . . . simply because of a contracting officer’s representation that he/she intends not to disturb award of the contract (including their intent to award options).”

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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....

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