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Industrial Base Sole-Source Award Deficient

Client Alert | 1 min read | 04.04.14

In Coulson Aviation (USA) Inc.; 10 Tanker Air Carrier, LLC; Minden Air Corp. (Mar. 31, 2014), GAO agreed with protesters, including one represented by Crowell & Moring, that the U.S. Forest Service had unlawfully awarded a sole-source contract with a potential value of nearly $500 million. After extensive briefing and a two-day hearing, GAO found that the sole-source award was invalid because the true basis for award had been honoring a settlement agreement promise to award the contract and the Justification & Approval supporting the award both (i) improperly relied on the factually inapplicable "industrial base" exception to the full and open competition requirements of the Competition in Contracting Act and (ii) failed to identify the critical facts relevant to the award.


Insights

Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....