Government Contract Disputes

“The Supreme Court has ruled in several cases that when the government acts in its contractual marketplace capacity, versus its sovereign regulatory capacity, the rules that control the government and those acting on its behalf are the same rules that govern any two commercial contracting entities.”

Governments are known for breaching contracts and getting away with it. Here are just a few common examples: A memorandum of understanding is written between a contractor and the city, and then, for instance

• it is tossed out.
  
• a less qualified company is awarded a government contract, with no explanation.
  
• a contract is negotiated with one government entity, then “political winds” change, and agreements are put aside.

More and more however, courts are ruling that this kind of behavior by governments must change.

Breach of Contract by a Government Entity

Recently, the U.S. Court of Federal Claims has dissolved the proof needed to defeat the often invoked presumption in government contracts litigation that the contracting officer acted in good faith. This in essence makes it simpler for contractors to initiate breach of contract by the government.

Fear of Retaliation

Companies often don't fight over contracts or even question government contract bids because they fear they will be excluded from any future contracts. In a businessperson’s mind, the government holds all the aces. But the question comes down to whether a government entity is allowed to continue holding all the cards or it is challenged. If you have a question about any part of a specific government contract, contact one of our attorneys. Our expertise in government contract inequities is extensive and can help companies level the playing field.

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