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LOC Clause Applies To Each Delivery Order, Not Full Contract

Client Alert | 1 min read | 07.30.04

In Analysas Corp. (May 12, 2004), the ASBCA held that, under an indefinite quantity cost-plus-fixed-fee contract for services, the contract’s limitation of cost (“LOC”) clause (which required the contractor to give notice if its costs were expected to exceed 75% of the "estimated cost specified in the Schedule") allowed the government to deny payments to a contractor for costs it incurred in excess of the estimated cost for each delivery order, even though the contractor had not yet exceeded 75% of the maximum total labor hours specified "in the Schedule" for the full contract. The Board reasoned that the contract lacked the “critical provision” of a specific dollar figure "in the Schedule" for the total estimated contract cost, instead allowing for later addition of estimated costs for each delivery order that the government issued.

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Client Alert | 5 min read | 12.12.25

Eleventh Circuit Hears Argument on False Claims Act Qui Tam Constitutionality

On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument....