Sample Tasks Must Be Reasonable Proxy For Entire Contract
Client Alert | 1 min read | 06.08.06
Holding that a cost realism analysis must provide a reasonable basis for estimating the cost to the government of an offeror's performance, in Metro Machine Corp . (May 3, 2006, http://www.gao.gov/decisions/bidpro/ 2978792.pdf) GAO overturned the agency's cost realism evaluation because, while sample tasks can provide a reasonable basis to assess the relative costs of competing proposals, the sample tasks used by the agency in this case were not representative of the contract work. The awardee had proposed a subcontractor with labor rates higher than the prime contractor's to perform a significant portion of the work, but, because that subcontractor had not been included in the proposed solution for any of the sample tasks, the subcontractor's high labor rates were nowhere reflected in the cost realism evaluation.
Insights
Client Alert | 6 min read | 06.09.26
Is Stock-a-palooza Over? Supreme Court allows SEC to Pursue Disgorgement
On June 4, 2026, the U.S. Supreme Court unanimously held that the U.S. Securities and Exchange Commission (SEC) can continue to pursue disgorgement as an equitable remedy in securities fraud cases without showing pecuniary loss by investors. The Court’s ruling in Sripetch v. SEC resolves a split between the U.S. Court of Appeals for the Second Circuit, which concluded that the SEC must demonstrate pecuniary loss, and the U.S. Courts of Appeals for the First and Ninth Circuits, which declined to require such a showing.
Client Alert | 2 min read | 06.09.26
Client Alert | 7 min read | 06.09.26
Client Alert | 11 min read | 06.08.26
