Termination for Convenience Case at Court of Federal Claims May Have Far-reaching Effect

The Court of Federal Claims issued a potentially very important decision in a Termination for Convenience case on April 2, 2013. In Tigerswan v. U.S., COFC 12-62C, Judge Firestone made a decision which could affect breach claims when the government acts in an illegal manner. With a number of potential terminations coming in the wake of sequestration, the nuances of this case may have a major impact. The Contractor alleged two bases for its breach of contract claim: 1. The government had breached the implied duty of good faith and fair dealing in its T for C decision; and 2. The government abused its discretion in the T for C decision, or it never intended to honor its contract. This is important because, generally, a … Continue reading

Counterfeit Parts Redux

The issue of counterfeit parts in the U.S. supply chain is becoming  more of a “front burner” issue. We told you recently about the formal rulemaking procedures which resulted from several years of investigation, followed by legislation last December, which is now being implemented through various rulemaking proceedings. The Defense Authorization Act, signed  last December 31, mandates action by individual company suppliers. By way of background, it has been verified that many counterfeit components, mostly electronic (but now others) are being sold in substantial amounts into the U.S. government supply chain. This can lead, in the case of basic chips and other components, to failures, but, with more sophisticated implants, it can lead to loss of control at calculated intervals, or even taking over control … Continue reading

The Very Real Problem of Fake Parts

There is a booming business in making and selling counterfeit parts to the U.S. government. Most of it is of foreign origin, but some is not. These parts can affect consumer electronics, telecommunications, medical devices, automotive parts, critical infrastructure, aircraft, spacecraft and various military applications. Counterfeits can be complete false fabrications, re-marked or re-worked used chips and other electronic parts, etc. Whether they will work is often the wrong question – working, but not properly, can be worse than a complete failure, e.g., altimeters, blood sugar analysis, etc. The problem can lead to tainted supply chains which in turn lead to threats such as: To Data:  Unauthorized Access, Alteration, Theft To Communications: Interruption, Interference, Interception, Insertion To Systems:  Poor performance, Failure, Remote system disablement To Public Perception:  Safety of military systems and … Continue reading