Scope of Proposed Rule on Self-Reporting is Expanded and Would Also Require Self-Reporting of FCA Violations and Contract Overpayments
Client Alert | 1 min read | 05.16.08
The FAR Secretariat today published for public comment an amendment to the proposed rule (73 FR 28407, May 16, 2008) that was previously published at the request of DOJ, to require contractors to have a code of ethics and business conduct and to notify the agency’s Office of Inspector General and the Contracting Officer whenever there is a “reasonable” basis to believe there has been a violation of federal criminal law in connection with a federal contract or subcontract. The amended proposed rule no longer exempts commercial item contracts and contracts that are performed outside the United States and, again at the request of DOJ, adds a requirement that contractors also report violations of the civil False Claims Act as well as contract overpayments, with knowing failures to report such violations being an additional cause for debarment or suspension.
Insights
Client Alert | 3 min read | 11.21.25
On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future.
Client Alert | 3 min read | 11.20.25
Client Alert | 3 min read | 11.20.25
Client Alert | 6 min read | 11.19.25
