VB CGC Practice Group

VB CGC Practice Group
Vandeventer Black's Construction and Government Contracts Practice Group focuses on serving our business clients in the construction industry. We currently have offices in Norfolk and Richmond, VA, the OBX and Raleigh, NC, and Hamburg, Germany. For more information about Vandeventer Black, clink on the VB logo.

Wednesday, September 25, 2013

New Affirmative Action and Nondiscrimination Obligations Set for March 2014

The U.S. Department of Labor published new final regulations on September 24, 2013 requiring Federal government contractors to begin complying with new affirmative action and nondiscrimination obligations towards veterans and individuals with disabilities by March 24, 2014.  The final regulations were published at 78 Fed. Reg. 58,614.  A link (last accessed 09/25/20013) follows:


Generally, the rule requires contractors to adopt quantifiable hiring benchmarks for veterans and utilization goals for people with disabilities.  The new rule also has a number of new employment data collection obligations, and requirements to invite job applicants to voluntarily self-identify themselves as protected veterans or individuals with disabilities both at the pre- and post-offer phases of the employment process.

There are some phase-in allowances.  As with any program of this type, its effectiveness in achieving its intended goal will remain to be seen, as will any future adjustments as the rules take affect.

Tuesday, September 3, 2013

Contractor's Misrepresentation Allows Government to Void Maintenance Contract

Multiple representations are required from prospective bidders as part of the bidding process. Some bidders push the line on those in order to put them in a better position for award. But what happens when a bidder crosses the line from augmenting qualifications to misrepresenting them? In the recent decision of Dongbuk R&U Engl'g Co., Ltd., ASBCA No. 58300, 8/13/13, decision released 8/26/13, the ASBCA concluded such misrepresentation allowed the Government to void the contact - in that case a maintenance services contract.  In its proposal, Dongbuk had represented that it had several technicians meeting required licensing requirements, but after award the Army found that none possessed the required certificate. 

The matter was referred to the local prosecutor's office and ultimately Dongbuk's CEO convicted of fraud and the company debarred.  In the interim, Dongbuk had been performing the contract and submitting invoices for its work that the Government did not pay.  Donguk's final decision request was denied, and it appealed for payment to the ASBCA. The ASBCA granted summary judgment to the Government on the grounds that Dongbuk's fraud voided the underlying contract, and that the fact that the Government may have received some benefit did not relieve Dongbuk from the consequences of its fraud.

This decision offers many lessons for prospective bidders / offerors; all learned the hard-way by Dongbuk.