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GAO Finds "Classic Example" Of Impaired Objectivity OCI

Client Alert | less than 1 min read | 09.10.04

In PURVIS Systems, Inc. (Aug. 16, 2004), GAO held that the Navy failed reasonably to consider or evaluate potential organizational conflicts of interest ("OCI") created by the awardee's role in evaluating performance of undersea warfare systems that have been manufactured either by the awardee or its competitors. GAO rejected the awardee's contention that no OCI issues could be created by the awardee's evaluation of the systems because such work was not "part of the procurement process" and explained that the situation presented a "classic example" of an "impaired objectivity" OCI.

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Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....