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GAO Rules that DoD May Not Require a Small Business Joint Venture Itself to Hold Facility Clearance

Client Alert | less than 1 min read | 09.08.21

In InfoPoint LLC, the Government Accountability Office ruled that the Department of Defense could not require a small business joint venture offeror to itself hold a facility clearance when the individual joint venture members themselves both hold the necessary facility clearances.  GAO ruled that the National Defense Authorization Act for Fiscal Year 2020, implemented in the Small Business Administration’s regulations at 13 C.F.R. § 121.103(h)(4), unambiguously prohibits the DoD from requiring that a joint venture hold a facility clearance if the members do.  Read more about this decision here.

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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....