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Using Available Funds For Other Purposes No Excuse For Breach

Client Alert | 1 min read | 03.22.05

The Supreme Court in Cherokee Nation of Okla. v. Leavitt (Mar. 1, 2005) sustained breach actions by several Indian tribes against the Department of Interior, which had tried to avoid its contractual obligations by saying that it didn't have enough appropriated funds to meet all of its various responsibilities. In so doing, the Court reaffirmed the long-established rule for procurement contracts that, if Congress has not earmarked funds specifically for a program and "if the amount of an unrestricted appropriation is sufficient to fund the contract, the contractor is entitled to payment even if the agency has allocated the funds to another purpose or assumes other obligations that exhaust the funds," even if the contract has language such as "subject to the availability of funds."

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Client Alert | 2 min read | 12.29.25

FYI – GAO Finds Key Person “Available” Despite Accepting Employment with a Different Company

GAO’s key personnel rule is well-known—and often a source of frustration— amongst government contractors.  Proposed key personnel who become “unavailable” prior to contract award—especially where they have accepted employment with a different company—may doom an offeror’s proposal by rendering it noncompliant with solicitation requirements.  But GAO’s recent decision in FYI – For Your Information, Inc., B-423774, B-423774.2 (Dec. 19, 2025) provides some potential relief from that rule. ...