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Court Of Federal Claims Finds CDA Anti-Fraud Provision's Statute Of Limitations Has A Hard Stop At 6 | Vinson & Elkins LLP


For federal contractors, the Contract Disputes Act (“CDA”)
1 can be a double-edged sword. While the CDA allows contractors to assert contractual claims against the Government, the CDA also contains an anti-fraud provision that the Government can use both to defeat claims and to seek civil penalties from the contractor if the contractor’s asserted claims are based in fraud. This anti-fraud provision provides the Government a powerful tool in litigating against contractors’ CDA claims. But the law surrounding the anti-fraud provision is unsettled in areas, creating uncertainty for contractors when the Government invokes the anti-fraud provision in CDA litigation. A recent Court of Federal Claims (the “Court”) case attempted to settle one of those questions when liability under the anti-fraud provision must be determined. And, at least for now, the Court’s decision imposing a hard deadline for a determination of fraud under the statute injects some more certainty ....

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