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GAO Sustains TRICARE Protest On Multiple Grounds

Client Alert | 1 min read | 11.18.09

In Health Net Fed Servs., Inc. (Nov. 4, 2009), GAO sustained the protest of Health Net (represented by C&M) against a $16 billion TRICARE award because (1) the agency's past performance evaluation unreasonably gave the awardee significant credit for contracts much smaller than the contract to be awarded and improperly attributed to the awardee the past performance of the awardee's parent and its affiliates; (2) the agency's price realism evaluation failed to consider whether the awardee's staffing reflected a lack of understanding of the technical requirements; (3) the agency overlooked the risk associated with the awardee's proposed plan to hire large percentages of the incumbent workforce; and (4) the agency did not consider, as part of the technical evaluation, the cost savings associated with the protester's proposed approach. In addition to the fatal evaluation errors, GAO also determined that the awardee's use of a former high-level government employee in preparing its proposal created an appearance of impropriety based on the unfair competitive advantage stemming from the individual's earlier access to non-public, proprietary, and source-selection-sensitive information.

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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....