1. Home
  2. |Insights
  3. |Lack of Security Clearance Renders Key Person Unavailable

Lack of Security Clearance Renders Key Person Unavailable

Client Alert | 1 min read | 07.07.20

In M.C. Dean, Inc., GAO reaffirmed that where an offeror has actual knowledge that a proposed key person has become unavailable before award, the offeror is required to notify the agency, which may result in the offeror’s exclusion. Interestingly, here the awardee key person at issue was still technically available to work on the contract, but had been denied a security clearance necessary to perform their proposed role: program manager. The awardee argued that the right to appeal the security clearance denial had not yet expired, and thus the person was not unavailable. But GAO emphasized that no appeal had been filed and, even if one were, there was no indication that it would be successful in time for the person to perform as program manager. The agency also argued that the key person was not material to the agency’s evaluation. GAO found that argument “irrelevant” given that the offeror had actual knowledge of the “unavailability” to serve in the proposed role and failed to notify the agency.

Insights

Client Alert | 6 min read | 03.26.24

California Office of Health Care Affordability Notice Requirement for Material Change Transactions Closing on or After April 1, 2024

Starting next week, on April 1st, health care entities in California closing “material change transactions” will be required to notify California’s new Office of Health Care Affordability (“OHCA”) and potentially undergo an extensive review process prior to closing. The new review process will impact a broad range of providers, payers, delivery systems, and pharmacy benefit managers with either a current California footprint or a plan to expand into the California market. While health care service plans in California are already subject to an extensive transaction approval process by the Department of Managed Health Care, other health care entities in California have not been required to file notices of transactions historically, and so the notice requirement will have a significant impact on how health care entities need to structure and close deals in California, and the timing on which closing is permitted to occur....