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"Yardstick" Measures Failure to Progress in A-12 Default Termination

Client Alert | 1 min read | 05.11.07

In the latest opinion in the 16-year A-12 litigation, McDonnell Douglas Corp. v. United States, No. 91-1204C (Fed. Cl. May 3, 2007) the Court of Federal Claims, on remand from the Federal Circuit, upheld default termination of the fixed-price research and development contract based upon a failure to make progress -- even though the full contract "had no completion date at [the time of] termination." With no completion date for the full contract, the Court instead used a "yardstick" to measure the contractors' progress, holding that (1) the Court could use a series of interim deadlines for the production of prototype aircraft to define both the "performance required" and the "time remaining for performance"; and (2) at the time of termination, there was sufficient information available for the contracting officer to have concluded there was no reasonable likelihood of delivery under those deadlines (even if the contracting officer did not, in the event, make the default termination decision based upon that "available" information).

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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....