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Chutzpah Goes Unrewarded

Client Alert | less than 1 min read | 02.24.06

The contractor in Armour of Am. v. U.S. (CFC Feb. 14, 2006) alleged "no cause of action" when it argued that it should not have been terminated for default when it was obvious from its offer that it could not meet the mandatory requirements of the RFP/contract and the FAR required the agency to reject nonconforming offers. Still alive, though, is the issue of whether the agency breached its good faith duties by making the award with actual knowledge of the nonconformity and then defaulting early on in the program.

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Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....