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Take Care to Preserve Ordering and Option Rights

Client Alert | less than 1 min read | 02.23.11

In a 2-1 decision in Mabus v. Gen. Dynamics C4 Sys., Inc. (Feb. 4, 2011), the Federal Circuit held that GD was equitably estopped to void an order exercise by the government due to the wrong transmission method because it had repeatedly accepted that method during prior performance. The lesson for contractors is to scrutinize each order and option exercise and, if it is deficient in any way but is still desirable, to put the government on notice that it is being accepted despite the noted deficiency and without prejudice with regard to future exercises.

Insights

Client Alert | 6 min read | 11.19.25

Buying Peace: The Importance of Releasing FCA Liability When Resolving Criminal Allegations of Fraud Against the Government

The facts before the Third Circuit in the recently decided case of Patel v. United States illustrate how parties can put themselves in a bind if they make factual admissions when resolving a criminal case involving fraud on the government while not simultaneously resolving the government’s civil claims under the False Claims Act (FCA) for the same underlying conduct....