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CFC Rules That GAO Made Faulty OCI Analysis

Client Alert | 1 min read | 07.21.10

In Turner Constr. Co. v. U.S., the Court of Federal Claims effectively reversed a decision by the GAO in which it had found an organizational conflict of interest resulting from intermittent acquisition negotiations between a subcontractor of the awardee and the parent of a company that assisted the Army Corps of Engineers in preparing the solicitation and evaluating proposals, negotiations that resulted in a post-award acquisition. The Army had followed the GAO recommendation and had disqualified the original awardee, Turner, but the Court concluded that the agency had erred by relying upon the GAO decision because that decision was irrational in light of the fact that GAO had applied the wrong standard of review and “[GAO] overturned the CO’s determination without highlighting any hard facts that indicate a sufficient alignment of interests" between the two companies.

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Client Alert | 8 min read | 10.01.25

BIS Issues “Affiliates Rule” to Dramatically Expand Applicability of Entity and Military End-User Lists

On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes....