Government Contracts Commons^™

Protecting Whistleblowing (And Not Just Whistleblowers), Evan J. Ballan

Michigan Law Review

When the government contracts with private parties, the risk of fraud runs high. Fraud against the government hurts everyone: taxpayer money is wasted on inferior or nonexistent products and services, and the public bears the burdens attendant to those inadequate goods. To combat fraud, Congress has developed several statutory frameworks to encourage whistleblowers to come forward and report wrongdoing in exchange for a monetary reward. The federal False Claims Act allows whistleblowers to file an action in federal court on behalf of the United States, and to share in any recovery. Under the Dodd- Frank Act, the SEC Office of …

Supervising Outsourcing: The Need For Better Design Of Blended Governance, Nina A. Mendelson

Book Chapters

We are long past the “vending machine”-style privatization of government functions – where the government contracts to buy a discrete product or service at a set price, whether aircraft components or landscaping. Government is increasingly enlisting, or collaborating with, private entities for functions long perceived as distinctly public. Private entities may make policy explicitly (through standards that agencies later adopt) or implicitly (through the third party verification of compliance with regulatory objectives). For example, the Department of Health and Human Services relies on the recommendations of an American Medical Association committee of specialist physicians to establish Medicare physician payments, while …

The Real Issue Behind Stanford V. Roche: Faulty Conceptions Of University Assignment Policies Stemming From The 1947 Biddle Report, Sean M. O'Connor

Michigan Telecommunications & Technology Law Review

The recent Supreme Court decision in Stanford v. Roche laid bare a faulty assumption of the federal research funding system. Government patent policy for federally funded research relies on "contractors"--the recipients of federal funding--to secure patent assignments from their employees. While this practice was routine for private firms and nonprofit research institutions, it was not for universities. This was in part based on the relationship of faculty and other researchers to universities that differed from industry employment relationships. The roots of this faulty assumption can be traced to the seminal 1947 Biddle Report. Detailed monographs drafted as appendices to the …

Globalizing Social Finance: How Social Impact Bonds And Social Impact Performance Guarantees Can Scale Development, Deborah Burand

Articles

While the SIB structure is still in its infancy, there is momentum building to globalize this social finance innovation so that it can help scale development goals around the world. Taking the SIB global is not a simple matter, however. This article explores several of the more challenging issues that are likely to arise in applying a SIB or elements of the SIB structure to social problems and development goals in developing countries. The article begins with a summary review of the goals and structures used in the two earliest SIBs. It then discusses key challenges and opportunities that SIBs …

Linking International Markets And Global Justice, Jeffrey L. Dunoff

Michigan Law Review

The U.S. government is the planet's largest purchaser of goods and services; worldwide, states spend trillions of dollars on procurement each year. Yet legal scholarship has devoted relatively limited attention to the conceptual and normative issues that arise when states enter the market. Should states as purchasers be permitted to "discriminate" to advance social objectives - say, racial justice - in ways that would be unlawful when they act as regulators? Is each country free to strike its own balance between the pursuit of economic and social objectives through procurement, or do international trade norms limit state discretion in the …

The Ideal Deal: How Local Governments Can Get More For Their Economic Development Dollar, Rachel Weber, David Santacroce

Books

This handbook is designed to provide local economic development practitioners with an important tool. It takes the reader step-by-step through the different elements of contracts that treat public incentive packages as a quid pro quo for public benefits. Each section discusses a different element of the ideal deal: valuation of public costs and benefits, performance standards, disclosure and oversight, and enforcement. In each section we provide detailed examples of model provisions used by local governments in their incentive legislation, ordinances, and contracts -- information that has not before been obtained or recorded in any systematic way. These examples are meant …

The Dormant Commerce Clause And State-Mandated Preference Laws In Public Contracting: Developing A More Substantive Application Of The Market-Participant Exception, Benjamin C. Bair

Michigan Law Review

This Note argues that the current focus on the relationship between states and their local governments as the key determinant of the constitutional validity of state-mandated preference laws is flawed. Instead, a court considering the validity of a state-mandated preference law should uphold such a law only if it distributes the benefits of state expenditures to state residents and does not excessively burden interstate commerce.

Earmarked Appropriations: The Debate Over The Method Of Federal Funding, Donald N. Langenberg

University of Michigan Journal of Law Reform

The report that follows is the product of the Committee's deliberations.

The associations which sponsored the Committee and to which its report was addressed are at this date still considering the recommendations of the report. The Association of American Universities has adopted a resolution reaffirming its position supporting the use of scientific merit for research funding decisions and opposing earmarked funding, and agreeing to a moratorium on earmarked funding while the Association supports the creation of federally-funded research facilities programs. The American Association of State Colleges and Universities and the National Association of Independent Colleges and Universities have adopted or …

The Self-Critical Analysis Privilege And Discovery Of Affirmative Action Plans In Title Vii Suits, Michigan Law Review

Michigan Law Review

This Note argues that plaintiffs should have access to affirmative action plans in discovery. Part I describes the "self-critical analysis" or "self-evaluative" privilege that employers have advanced to block discovery of such plans. Part II examines the conflicting interests of society, employers and employees in allowing or denying discovery. Part III evaluates the application of a self-critical analysis privilege in light of these conflicting interests and concludes that the privilege should not be applied to affirmative action plans.

Intent Or Impact: Proving Discrimination Under Title Vi Of The Civil Rights Act Of 1964, Michigan Law Review

Michigan Law Review

This Note analyzes the controversy and concludes that courts must apply an impact standard in title VI cases. After reviewing the relevant Supreme Court decisions, Part I contends that Bakke did not overrule Lau's approval of an impact standard. Part II examines the regulations on which the Lau court relied. It first characterizes them as legislative; they derive the force of law from an explicit congressional delegation of substantive power. Part II then tests the regulations' impact standard against the language, legislative history, and policy of title VI and finds it valid. Since courts may not disregard valid legislative regulations, …

Affirmative Action: Hypocritical Euphemism Or Noble Mandate?, Theodore J. St. Antoine

Articles

Title VII of the Civil Rights Act of 1964 was adopted in an atmosphere of monumental naivete. Congress apparently believed that equal employment opportunity could be achieved simply by forbidding employers or unions to "discriminate" on the basis of "race, color, religion, sex, or national origin," and expressly disavowed any intention to require "preferential treatment." Perhaps animated by the Supreme Court's stirring desegregation decisions of the 1950's, the proponents of civil rights legislation made "color-blindness" the rallying cry of the hour. Today we know better. The dreary statistics, so familiar to anyone who works in this field, tell the story. …

Minority Enterprise, Federal Contracting, And The Sba's 8 (A) Program: A New Approach To An Old Problem, Michigan Law Review

Michigan Law Review

In partial response to the problems of the minority businessman, the Small Business Administration (SBA) has developed the 8(a) Program to channel government contracts to businesses owned by disadvantaged persons. This is accomplished through a procedure whereby the SBA contracts with another federal agency to provide that agency with goods or services, and then subcontracts that obligation to a qualified small business on a noncompetitive basis. The withdrawal of these contracts from competitive bidding has recently resulted in the institution of a number of federal court suits alleging inter alia that the 8(a) Program denies to whites the equal protection …

Affirmative Action: A Robin Hood Hiring In Federally Aided Construction, Frederick W. Lambert

University of Michigan Journal of Law Reform

Executive Order 11246, promulgated in September 1965, requires that all federal financial aid applicants incorporate into construction contracts and sub-contracts the same guarantees of equal employment opportunity that are required of parties in a direct contractual relationship with the government. Each contractor must "take affirmative action to ensure that [job] applicants are employed… and treated during employment" in a nondiscriminatory manner and must guarantee that his subcontractors will also take such affirmative action. Responsibility for enforcement of the Order was delegated to the newly-established Office of Federal Contract Compliance (OFCC). The OFCC drafted guidelines 6 requiring contractors and major subcontractors …

Federal Criminal Procedure-Subpoena Of Nonresident Citizen As Witness Before Grand Jury, Andre A. Schwartz

Michigan Law Review

Defendant, a nonresident citizen of the United States, was subpoenaed by a federal district court to appear before a grand jury investigating alleged fraud in the procurement of government contracts. Defendant having failed to appear, the district court issued an order directing him to show cause why he should not be held in contempt. On appeal from a judgment holding defendant in contempt, held, reversed, one judge dissenting in part. The power of a federal district court to subpoena a nonresident citizen is limited to the actual trial of a criminal action. United States v. Thompson, 319 F.2d …

Government Contracts-Judicial Review Under Disputes Clause, Amos J. Coffman Jr.

Michigan Law Review

In a factual dispute arising under a standard government construction contract, the contractor followed the procedures required by the disputes clause. The contractor, after its claim was denied by the contracting officer, appealed to the Board of Claims and Appeals of the Corps of Engineers. The Board rejected the claim, and the contractor brought suit in the Court of Claims, alleging, in the words of the Wunderlich Act, that the Board's decision was "capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith, or was not supported by substantial evidence." Over the Government's objection, a commissioner of …

Constitutional Law-Relation Of Federal And State Governments- Applicability Of State Minimum Price Regulations To Federal Procurement, Alexander E. Bennett

Michigan Law Review

The United States accepted the lowest bids for the supply of milk at three military installations in California. Because these bids were below the minimum prices for wholesale milk prescribed by state law, California instituted proceedings in the state courts for civil damages and injunctive relief against the successful bidders. The United States brought a separate action in a federal district court asking that the state be enjoined from applying its minimum price regulations to milk purchases by the armed services on the grounds that the military installations were federal enclaves over which the United States has exclusive jurisdiction and …

Patents-Procedure-Applicability Of Invention Secrecy Act Where Government Use Of Invention Is Authorized, Thomas G. Dignan Jr.

Michigan Law Review

After extended negotiations, plaintiff entered into a contract with the United States for the development of a new model "hemisphere sight," a mock-up of which plaintiff had previously revealed to the Air Force. Acting upon a request by the Air Force, the Commissioner of Patents issued a secrecy order on the gun sight pursuant to provisions of the Invention Secrecy Act, thus preventing the issuance of a patent to the plaintiff. In order for the United States to have a second source of supply for the sights, the plaintiff revealed its engineering information to another manufacturer upon governmental request to …

Suretyship-Subrogation-Rights Of Surety To Funds Withheld Under A Government Contract, William T. Holcomb Jr.

Michigan Law Review

Petitioner surety, under the terms of its payment bond, paid laborers and materialmen of a government contractor, who was later adjudicated bankrupt. The Government paid to the trustee in bankruptcy funds it had retained but which had been earned prior to termination of the contract. The district court1 reversed the referee's ruling denying the surety's petition for an order directing the trustee to transfer the retained funds to the surety. On appeal, held, affirmed. The surety was entitled to the funds, in preference to the trustee in bankruptcy, by subrogation to the laborers' and materialmen's equitable priority in the …

Federal Courts - Choice Of Law Application Of Federal Law To Government Subcontract In Federal Diversity Case, H. C. Snyder Jr.

Michigan Law Review

Defendant obtained a government missile contract, and plaintiff was subcontracted to manufacture containers for the missiles. When certain changes in elements of the containers were ordered by the Government, plaintiff demanded an "equitable adjustment" from defendant pursuant to the terms of the subcontract. Defendant paid only the costs of effecting the necessary changes. Plaintiff instituted this suit in federal district court alleging diversity of citizenship and demanding that the adjustment include, as allowed by California law, compensation for overhead losses caused by a partial work stoppage during the delay in effecting the changes. The district court characterized the contract as …

Constitutional Law - Relation Of Federal And State Governments Applicability Of State Licensing Statute To Federal Contractors, Lee N. Abrams S.Ed.

Michigan Law Review

A contractor submitted a bid for construction of facilities at an Arkansas Air Force Base over which the United States had not acquired jurisdiction. After this bid was accepted by the federal government and work on the project had begun, the contractor was tried by the Circuit Court of Pulaski County, Arkansas, and found guilty of submitting a bid, executing a contract, and commencing work as a contractor without the license required by Arkansas law. The Arkansas Supreme Court affirmed the judgment of the trial court. On appeal to the United States Supreme Court, held, reversed. In a brief …

Incidents Of The Government-Servant Relationship, Ivor L.M. Richardson

Michigan Law Review

The procedures developed in the past five years to meet the threat of communist infiltration into public employment have focused attention on the position of persons working for the federal government. However, the loyalty program and the general problem of dismissal are not the only aspects of federal employment which raise important issues. Other aspects of the government-servant relationship may be of even greater importance to the civil servant in practice. For instance, what are his legal rights to his salary or to his pension if the government refuses to pay? Can he secure redress if he is suspended from …

Contracts - Offer And Acceptance - Effect Of Post Office Regulations On Adams V. Lindsell Doctrine, Norman A. Zilber S.Ed.

Michigan Law Review

Plaintiff, a bidder on a government contract, attempted to withdraw its bid upon discovering that it had made a mistake in its calculations. The revocation arrived at the government's office the same day the acceptance of the bid was mailed. The government's invitation to bid provided that "the successful bidder will receive Notice of Award ... and such Award will thereupon constitute a binding contract ... .'' Upon the government's refusal to recognize the revocation, the plaintiff brought suit to recover losses resulting from performance at the bid price. Held, there was no binding contract. Since the post office …

Administrative Discretion In The Award Of Federal Contracts, Arthur S. Miller

Michigan Law Review

For our present purposes, the point to be seen is that while this article is inquiring into the question of choice of contractor, the government is largely in control of the other chief attribute of traditional liberty of contract: the terms and conditions of the contract itself. We may thus summarize a first conclusion in the inquiry under consideration in this manner: the government is under no restraint as to many of the terms and conditions of its contracts and may impose those conditions it deems necessary. These are imposed as a result of a statute (an example of …

Contracts - Consideration - Effect Of Option To Withdraw Government Surplus Property From Sale, Arthur M. Wisehart S.Ed.

Michigan Law Review

The Office of Surplus Property accepted defendant's bid for a quantity of sodium carbonate. Submitted on the appropriate government form, the bid was subject to a condition which gave the government " . . . the right to withdraw from sale any property prior to the removal thereof without incurring any liability except to refund to the purchaser any amount paid with respect to the said property." Although the sodium carbonate had not been withdrawn from sale, the defendant refused to perform his promise to buy it. The government brought an action for damages, and the defense was that no …

The Disputes Article In Government Contracts, Leslie L. Anderson

Michigan Law Review

An approach to the subject of government contracts requires some departure from the lawer's usual concept of a legal right. In this field, departures from generally accepted principles of contract law have developed in no small part from administrative practice, and the concept of a legal right cannot be thought of simply from the angle of enforceability in court. In transactions between private parties, the fact that the United States Supreme Court in Chase Securities Corporation v. Donaldson recently treated a legal right as being in essence merely dormant after the running 6f the statute of limitations against it would …

A Further Legal Inquiry Into Renegotiation: Ii, Charles W. Steadman

Michigan Law Review

Several issues concerning constitutionality of the Renegotiation Act were discussed in a previous article. That prior inquiry was, of course, not complete, nor is it possible here to exhaust all of these problems. The changes which the Revenue Act of 1943 made in renegotiation together with the manifest importance of this subject and the national interest which has been created by the challenges made concerning its constitutionality warrant further inquiry into this phase of the act. The issues of delegation of legislative authority, impairment of contracts, due process and judicial review, as well as the nature of renegotiation as a …

Termination Of War Contracts: The Contract Settlement Act Of 1944, David A. Goldman

Michigan Law Review

Enacted with a background of knowledge gained from the termination of more than 25,000 army and navy contracts having an uncompleted value of approximately $17,000,000,000, the Contract Settlement Act of 1944 was the first of the legislative enactments by which Congress seeks to control the possibility of a rising tide of economic difficulties which might otherwise drown the body politic in a flood of cancellation notices. The passage of the act was preceded by extensive public hearings and debates, during which responsible Government officials and leaders of labor and industry expressed their considered opinions. Congress likewise had the benefit of …

A Further Legal Inquiry Into Renegotiation: I, Charles W. Steadman

Michigan Law Review

Renegotiation has undergone some important changes which call for consideration. Congress .has undertaken to rewrite the Renegotiation Act. Administrative and procedural developments have created new problems. The act is being attacked as unconstitutional. Procedural technique and statutory interpretations have crystallized sufficiently to permit careful scrutiny. And the problems regarding the determination. of excessive profits, questions of taxation, amortization, cost allowances, as well as the constitutionality of the act, are a challenge to a continued study of this law and its administration.

Termination Of War Department Contracts At The Option Of The Government, David A. Goldman

Michigan Law Review

The United States of America has been mobilized and waging war for more than two years. Every device known to science, every resource of the country, every means of production, has been and is being employed to bring the conflict to a successful conclusion. Public funds, in amounts beyond comprehension, have been appropriated for the production of materiel. As of March r943, the War Department alone had outstanding more than 240,000 contracts in the face amount of approximately $75,000,000,000.

Taxation-Assessment Of Government-Owned Property Leased To Private Enterprise, Allen C. Holmes

Michigan Law Review

The Board of Property Assessment, Appeals, and Review of Allegheny County for ad valorem taxes in the state of Pennsylvania increased the assessed value of the realty of the Mesta Machine Company by the sum of $618,000 to include the value of certain additional machinery which had been installed on the premises. The machinery was leased by the United States Government to the company and was placed in the factory in order that the company might manufacture heavy field guns for the Government, under a cost-plus-fixed-fee contract. The legal title and the beneficial ownership of the machinery remained in the …