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Post Hoc Explanation Inadequate To Save Unreasonable Price Evaluation

Client Alert | 1 min read | 07.15.08

In Joint Venture Penauille/BMAR & Associates, LLC (May 12, 2008, http://www.gao.gov/decisions/bidpro/311200.pdf), GAO sustained a challenge to the Navy's price evaluation, when, in a fixed-procurement, the agency unreasonably rejected the protester's proposal on the grounds that it offered low indefinite quantity pricing for certain minor work and the record contained no evidence that the pricing actually presented any risk to performance. GAO rejected the agency's post hoc justification that the low pricing presented performance risk because the contractor allegedly had the option to reject work if not sufficiently profitable, finding no support for this assertion in the record and nothing in the RFP that permitted the winning contractor to reject orders for the subject indefinite quantity work.

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Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....

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