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 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. TOP
| 
