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New Pro-Competitive Restrictions On DoD Prototype Line Items and Options

Client Alert | 1 min read | 06.18.10

On June 8, 2010, DoD issued an interim rule, intended to prevent competitively awarded contracts for new technology from becoming noncompetitive efforts long-term. The interim DFARS provisions require that contract line item purchases and contract options must be limited to the minimum number of initial or additional prototype items that will allow for timely competitive solicitation and award of a follow-on development or production contract for those items; that the term of the contract line item or contract option cannot be longer than 12 months; and that the dollar value of the work to be performed pursuant to the contract line item or contract option may not exceed three times the dollar value of the work previously performed under the contract or $20 million, whichever is less.

Insights

Client Alert | 4 min read | 07.22.26

FCPA and National Security Objectives Align: DOJ Announces First Settlement Related to Bribes That Benefited Mexican Cartels

On July 17, 2026, the United States Department of Justice (DOJ) announced that it had entered into a Deferred Prosecution Agreement (DPA) with The Scoular Company (Scoular), an agricultural supply chain company based in Omaha, Nebraska, to resolve allegations that Scoular relied on customs brokers to bribe Mexican government officials to allow Scoular goods to pass customs inspections and be delivered to Mexico from the United States. As part of its resolution, Scoular agreed to pay a $9,769,521 criminal penalty and forfeit an additional $414,351. Scoular also committed to continue cooperating with DOJ on any ongoing or future criminal investigations, implement a compliance and ethics program designed to prevent and detect violations of the Foreign Corrupt Practices Act (FCPA), and periodically report to DOJ on remediation and implementation of compliance measures throughout the term of the DPA....