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Defense Contractors Begin To Feel Effect Of DoD Requirement To Provide Unique Item Identifiers And Unit Cost Information

Client Alert | less than 1 min read | 02.09.04

Many DoD contractors are recognizing the potential burden of a recent DoD clause compelling contractors to mark deliverable hardware valued in excess of $5,000 with a machine-readable, unique identification sufficient to last throughout the life of the hardware. The new DoD clause, included in solicitations issued starting January 1, 2004, can also require the same type of marking for subassemblies, components, and parts embedded within the hardware and further requires contractors to furnish the Government's unit acquisition cost, which in the case of fixed-price items is simply the unit price and in cost-type contracts is an estimate of the fully burdened unit cost at the time of delivery.

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Client Alert | 4 min read | 05.18.26

(Not) All’s Weld That Ends Weld: Duty Evasion Scheme Ends in Historic $549.5M FCA Settlement

The Department of Justice (DOJ) and the cross-agency Trade Fraud Task Force have upped the ante by an order of magnitude in the government’s pursuit of customs fraud. On May 1, 2026—only a few months after setting its previous record-high customs-related False Claims Act (FCA) settlement of $54.4 million with Ceratizit USA, LLC—the DOJ shattered that record with a $549.5 million settlement with Perfectus Aluminum Inc., its subsidiary Perfectus Aluminum Acquisitions LLC, and a set of four affiliated warehousing companies. The Perfectus settlement resolves allegations that the defendants violated the FCA by evading antidumping and countervailing duties (AD/CVD). The settlement resolves three separate qui tam complaints filed by two individual relators and the Aluminum Extruders Council, an international industry association. Defendants were previously criminally convicted on charges related to the same scheme, and those convictions were affirmed by the Ninth Circuit in 2024....

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