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USPS Auction Crash Lands

Client Alert | less than 1 min read | 11.01.05

The Court of Federal Claims in Asia Pacific Airlines v. U.S. (Oct. 14, 2005) grounded USPS when it indicated to bidders that varying flight schedules for mail transport would be permissible and then disqualified the low bidder on two lanes after two rounds of internet auction for failing to conform to the suggested tender times. The court enjoined not only the awards for those two lanes, but for several others that the airline said it would have bid on if it had known the true ground rules.

Insights

Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....