On March 6, the Financial Crimes Enforcement Network (FinCEN) announced a historic $80 million civil money penalty against Canaccord Genuity LLC for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. FinCEN, which is part of the U.S. Treasury Department, has principal responsibility for administration of U.S. anti-money laundering (AML) and terrorist financing laws.
Continue Reading FinCEN Update: Huge Penalty on Broker-Dealer for Willful AML, SAR, and Due Diligence FailuresExport Enforcement Update: Huge Penalty Imposed for Semiconductor Re-Exports to China
By Faith Dibble & Thad McBride on
On February 11, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a settlement with Applied Materials, Inc. (AMAT) and Applied Materials Korea, Ltd. (AMK) resolving allegations that the companies illegally reexported U.S.-origin semiconductor manufacturing equipment to China.
Continue Reading Export Enforcement Update: Huge Penalty Imposed for Semiconductor Re-Exports to ChinaGAO: Conversion Did Not Void Procurement Eligibility
By Todd Overman on
In the matter of L3Harris Technologies Integrated Systems L.P., the Government Accountability Office (GAO) denied a protest filed by L3Harris challenging the U.S. Army’s award to Sierra Nevada Company, LLC for the Army’s HADES (High Accuracy Detection and Exploitation Systems) aircraft effort.
Continue Reading GAO: Conversion Did Not Void Procurement EligibilityOFAC Enforcement Update: $1.72M Settlement Highlights Screening Gaps in Education, Similar Sectors
On February 12, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a $1.72 million settlement with IMG Academy, LLC (IMG) arising from apparent violations of OFAC’s counternarcotics sanctions program. OFAC is the U.S. government agency with primary responsibility for administering economic sanctions.
Continue Reading OFAC Enforcement Update: $1.72M Settlement Highlights Screening Gaps in Education, Similar SectorsBid Protest Minute: Pricing Narratives Won’t Save You If Rates Look Unrealistic, GAO Says
By Todd Overman on
Posted in Bid Protest Minute, Government Contracts
In T3i, Inc., the Government Accountability Office (GAO) denied T3i’s protest after the Air Force excluded T3i’s low-priced, technically acceptable proposal because the agency found 25 of T3i’s 129 unburdened (gross) hourly labor rates unrealistically low. GAO held that the Air Force’s price realism review was reasonable and consistent with the solicitation, and it rejected T3i’s claim that the Air Force had to rely on T3i’s pricing narrative in the realism analysis.
Continue Reading Bid Protest Minute: Pricing Narratives Won’t Save You If Rates Look Unrealistic, GAO SaysBid Protest Minute: GAO Rejects “Should Have Received More Strengths” Protest in $64M Army Task Order Competition
By Todd Overman on
On January 14, the Government Accountability Office (GAO) denied a protest filed by Strategic Resources, Inc. (SRI) after the Army issued a task order to360 Patriot Enterprises, LLC (Patriot) for Army National Guard military funeral honors and survivor outreach services.
Continue Reading Bid Protest Minute: GAO Rejects “Should Have Received More Strengths” Protest in $64M Army Task Order CompetitionSBA Suspends Over 1,000 8(a) Participants After Program-Wide Audit Data Request While DoW Announces Line-By-Line Review of All Small Business Awards Over $20 Million
By Richard Arnholt on
The U.S. Small Business Administration (SBA) has suspended 1,091 participants in the 8(a) Business Development Program after concluding that those firms did not timely submit required documentation in response to SBA’s recent program-wide data request. The suspensions are part of a broader effort by SBA to audit the 8(a) program and root out fraud, waste, and abuse.
Continue Reading SBA Suspends Over 1,000 8(a) Participants After Program-Wide Audit Data Request While DoW Announces Line-By-Line Review of All Small Business Awards Over $20 MillionExport Enforcement Update: EAR99 “In-Country” Transfers Lead to Penalty
By Faith Dibble & Thad McBride on
On January 7, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an Order resolving allegations that Exyte Management GmbH (Exyte), a Germany-based company, committed 13 violations of the Export Administration Regulations (EAR) in China. The violations were committed by Exyte’s Chinese affiliate, Exyte Shanghai Ltd (Exyte China).
Continue Reading Export Enforcement Update: EAR99 “In-Country” Transfers Lead to PenaltyExecutive Order Links Defense Contractor Payouts and Incentives to Production and Delivery Performance
By Todd Overman on
Posted in U.S. Department of Defense
On January 7, President Donald Trump issued an Executive Order titled “Prioritizing the Warfighter in Defense Contracting,” aimed at reshaping how certain defense contractors allocate capital. The goal is to push defense contractors to focus less on stock buybacks, dividends, and executive pay tied to short-term financial results, and more on delivering on time and investing in production capacity for critical defense programs.
Continue Reading Executive Order Links Defense Contractor Payouts and Incentives to Production and Delivery PerformanceSupreme Court Leaves “Interested Party” Limits Intact in Percipient.ai, Reinforcing Bid Protest Standing at COFC
By Todd Overman on
Posted in Bid Protests, Government Contracts
On January 12, the U.S. Supreme Court denied Percipient.ai’s (Percipient) petition for certiorari, leaving in place an en banc Federal Circuit decision that restricts who qualifies as an “interested party” eligible to bring a bid protest at the U.S. Court of Federal Claims (COFC).
Continue Reading Supreme Court Leaves “Interested Party” Limits Intact in Percipient.ai, Reinforcing Bid Protest Standing at COFC