Accuracy in contractor proposal representations and cybersecurity compliance remains pressing, as demonstrated by an April 2021 settlement under the False Claims Act (FCA). In a previous alert, we noted that contractor representations of cybersecurity compliance/capabilities represent a fertile ground for bid protests. In this GT Alert, we highlight how the Department of Justice (DOJ) Cyber Fraud Initiative and qui tam actions under the FCA represent significant enforcement mechanisms that raise the stakes for non-compliance with evolving cybersecurity requirements applicable to contractors and grant recipients.
On Oct. 6, 2021, DOJ announced its Civil Cyber-Fraud Initiative. This initiative uses the FCA to hold contractors and grantees accountable for knowingly furnishing deficient cybersecurity products/services, misrepresenting cybersecurity practices, or knowingly violating obligations to report cybersecurity incidents. DOJ, acting on behalf of the United States, entered into its first settlement to resolve two False Claims Act cases under the Civil Cyber-Fraud Initiative. United States ex rel. Watkins et al. v. CHS Middle East, LLC, No. 17-cv-4319 (E.D.N.Y. Feb. 28, 2022); United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., No. 20-cv-698 (E.D.N.Y. Feb. 28, 2022).
Comprehensive Health Services LLC (CHS), a global medical services provider, contracted to service government-run facilities in Iraq and Afghanistan. Under one such contract with the...
SPRINGFIELD – The Illinois Education Association (IEA) is working to pass Senate Bill 2914 this session, a bill that would put an end to a long-time practice of school administrators keeping accus...