Our Government Contracts Practice Group is chaired by Elizabeth A. Ferrell, Partner in our Washington, D.C. Office. Sonnenschein's Government Contracts Practice Group represents clients participating in every aspect of government contracting. Our practice encompasses disputes relating to contract performance, contract award controversies (bid protests), civil and criminal False Claims Act investigations and litigation, and disputes between prime and subcontractors.
Our practice also includes construction projects with public agencies both nationally and internationally. We represent clients before federal trial and appellate courts, agency boards of contract appeals, the General Accounting Office, state courts and administrative boards and such international tribunals as the International Chamber of Commerce (ICC). Besides handling active litigation matters, our lawyers advise clients on day-to-day government contracts issues and alternative dispute resolution procedures.
We help clients develop strategies that maximize opportunities to secure new contracts and to retain existing business.
The following are examples of recent matters handled by attorneys in Sonnenschein's Government Contracts Practice Group:
Litigation and Arbitration
Representation of McDonnell Douglas Corporation/Boeing Corporation
Sonnenschein lawyers represent McDonnell Douglas Corporation (now The Boeing Company) in litigation and claims arising from the United States government's default termination of a multi-billion dollar contract, with McDonnell Douglas and General Dynamics, for the development and production of the A-12 medium attack stealth aircraft. This litigation, brought in the United States Court of Federal Claims, involves the largest contract termination claim ever filed against the U.S. government. This case has already been the subject of several published decisions including: 35 Fed. Cl. 358 (1996), 40 Fed. Cl. 529 (1998), 182 F.3d 1319 (1999), 50 Fed. CI. 311 (2001), 323 F.3d 1006 (2003) and is currently on remand.
In a separate case, our lawyers defended McDonnell Douglas Corporation in a qui tam action filed in federal court in St. Louis. As part of that defense, we successfully challenged the validity of controversial Department of Justice regulations relied on by the government to make ex parte contacts with current employees of McDonnell Douglas and former employees represented by counsel. The court ruled that the DOJ regulations cannot displace state ethical rules and prohibited DOJ attorneys from making ex parte contacts with McDonnell Douglas employees. The government appealed to the 8th Circuit, which affirmed the trial court. United States ex rel. O'Keefe v. McDonnell Douglas, 132 F.3d 1252 (8th Cir.,1998). The district court granted MDC's motion for partial summary judgment and the case settled.
Representation of GTE Communications Corporation
Sonnenschein lawyers represented GTE Communications Corp. in the United States Court of Federal Claims and United States Court of Appeals for the Federal Circuit in connection with breach of contract claims against the U.S. government. These claims sought multi-million dollar damages for NASA's decision, in the wake of the Challenger disaster, not to proceed with the scheduled launch of a commercial satellite for American Satellite Company, now owned by GTE. In November 1995, the Court of Federal Claims, on remand from the Federal Circuit, granted summary judgment in favor of American Satellite Company on the issue of entitlement to damages for breach of contract. American Satellite Co. v. United States, 34 Fed. Cl. 468 (1995). Subsequently, GTE obtained a favorable multimillion dollar settlement.
International
International Chamber of Commerce Arbitration
Sonnenschein recently concluded a major government contracts matter before the International Chamber of Commerce in London. The arbitration arose from the design and construction of a $1 billion project involving one of the world's most challenging construction efforts. The firm assembled a panel of lawyers and experts from around the world to prepare this complex claim for arbitration. We also instituted a parallel action in U.S. District Court against third parties whose participation was key to resolution of the dispute. Ultimately, the firm was able to employ advanced ADR procedures in one of the first ever successful combined mediations of a U.S. District Court case and an I.C.C. arbitration.
T.Y. Lin International
Sonnenschein represented T.Y. Lin International in litigation in connection with the collapse of the Koror-Babeldaob Bridge in the Republic of Palau. The bridge was constructed in the mid 1970s, retrofitted in the early 1990s and collapsed shortly thereafter. T.Y. Lin's motion to dismiss was recently granted by the Supreme Court of Palau.
Federal Bid Protest Litigation
Representation of Avondale Industries, Inc
Sonnenschein lawyers successfully defended Avondale Industries, Inc. against a protest at the General Accounting Office involving the Navy's award to Avondale of the multi-billion dollar LPD-17 shipbuilding contract. Ingalls Shipbuilding, Inc., B-275830 et al., 97-1 CPD ¶ 180. Sonnenschein lawyers successfully defended the award of a multi-billion dollar Navy Sealift ship construction contract to Avondale Industries, Inc. Newport News Shipbuilding Corp., Ingalls Shipbuilding, Inc., B-254969, 94-1 CPD ¶ 98.
COMARK Federal Systems
Sonnenschein lawyers represented COMARK in a successful bid protest at the General Accounting Office. The GAO's decision established the precedent that agencies conducting an informal competition among GSA Schedule contractors must give some advance guidance of the basis on which selection of the awardee is to be made. COMARK Federal Systems, Comp. Gen. Dec. B-278343, 98-1 CPD 34.
Sybase, Inc
Our lawyers reached a favorable settlement on behalf of Sybase, Inc., a large supplier of database management systems and other software products, in a bid protest before the General Accounting Office concerning the United States Air Force's award of a task order under the I-CASE contract.
SCIENTECH, Inc
Sonnenschein represented SCIENTECH in a successful bid protest at the General Accounting Office regarding a procurement of technical support services by the Department of Energy. The GAO sustained the protest on two unrelated grounds, relating to DOE's failure to properly consider the offerors' cost proposals, and DOE's improper evaluation of the protester's past performance. SCIENTECH, Inc., B-277805.2, 98-1 CPD 33.
Oregon Freeze Dry
Sonnenschein lawyers successfully protested the use of an overly restrictive specification in the procurement of the United States Military's Meals Ready to Eat (MREs). Sonnenschein took advantage of the U.S. District Court's Scanwell jurisdiction to bring the action in Federal District Court in Oregon. After entry of a temporary restraining order, the agency removed the restrictive specification, allowing our client to compete for the contract.
Information Resources Inc
Sonnenschein lawyers represented Information Resources Inc. in protests before the General Services Board of Contract Appeals concerning procurements of information technology by components of the Department of Defense. A.C. Nielsen Company, Information Resources, Inc. v. Defense Commissary Agency, GSBCA No. 13466-P, 13469-P, 13470-P, 96-1 BCA ¶ 28,253; Information Resources, Inc. v. Defense Logistics Agency, 1994 GSBCA LEXIS 349.
Transdyn Controls
Sonnenschein successfully defended Transdyn Controls against a bid protest in connection with a contract for a computerized Supervisory Control And Data Acquisition system to monitor and control the power system of the United States Navy's base at Pearl Harbor, Hawaii. After a two-day evidentiary hearing, the Court of Federal Claims issued a 50+ page opinion in support of our client's position.
State and Local Contracting
Adtranz
Sonnenschein represented Adtranz, the former Westinghouse Transportation Systems company now owned by DaimlerChrysler, in protesting and successfully litigating the award of a $150 million contract for the automated light rail system at San Francisco International Airport. After guiding Adtranz through the administrative protest process in front of the San Francisco Airport Commission, Sonnenschein sued the Commission and the City and County of San Francisco in Superior Court to overturn the Commission's award to another bidder. In a ruling that was widely reported by the media as having a far-reaching impact on how California agencies award contracts, the Court overturned the Commission's award. When Adtranz came in as the low bidder on the subsequent rebid, Sonnenschein successfully defended Adtranz's bid from a protest filed by the original low bidder, and successfully defended the City's appeal of the trial court's decision overturning the initial award.
Transdyn Controls
Sonnenschein scored a victory for our client Transdyn Controls in a suit against the City and County of San Francisco. Transdyn and its joint venture partner, Cresci Electric, Inc., were awarded a $10.6 million contract by the San Francisco Public Utilities Commission for the design and installation of a system to monitor the quality and flow of the Bay Area's water supply. Not long after our client received the award, a third party threatened a lawsuit challenging San Francisco's minority subcontracting requirements on the grounds that they violate California's Proposition 209. When the PUC attempted to rescind the award to Transdyn/Cresci and put the contract out for rebid, our lawyers obtained an immediate stay. The trial court ultimately denied our client's petition for a writ of mandate compelling the PUC to execute the contract and proceed with Transdyn/Cresci as the contractor. In a published opinion, however, the California Court of Appeal reversed and directed the trial court to issue Transdyn/Cresci's requested writ enforcing our client's contract. Transdyn/Cresci v. City and County of San Francisco, 72 Cal.App. 4th 746 (1999).
Contract Claims/Termination Claims
Avondale Industries
Sonnenschein assisted Avondale in preparing and negotiating a claim for approximately $60 million on the Navy's sealift program. Avondale based its claim on a defective Navy specification of the ship's deck socket cargo lashing system. Sonnenschein assisted with both the entitlement and cost portions of the claim. Avondale ultimately settled the claim with the Navy on favorable terms.
SSC Tunnelers
Sonnenschein lawyers represented SSC Tunnelers, a joint venture of Obayashi Corporation and Dillingham Construction N.A., in preparing and negotiating a termination for convenience claim in connection with a $33 million tunneling contract terminated as part of the cancellation of the Superconducting Super Collider.
Westinghouse Electric Corporation, Marine Division
Sonnenschein represented Westinghouse Electric Corporation's Marine Division (now part of Northrop Grumman) regarding claims totaling approximately $100 million arising from the government's convenience terminations of the next generation of propulsion equipment for the United States Navy's newest lines of "Sea Wolf" and "Los Angeles" class nuclear attack submarines.
Advice and Counseling
dpiX, A Xerox Company
Sonnenschein advised dpiX, a developer of flat-panel imaging and display systems, with respect to the federal government's commercial items regulations. dpiX is transitioning from a research and development laboratory at the Xerox Palo Alto Research Center to a stand-alone manufacturing business targeting its high resolution AMLCDs at the military avionics and medical imaging markets. Through use of the commercial items regulations, dpiX has been able to reduce much of the cost and risk normally associated with government sales.
Obie Media Corporation
On several occasions our client, Obie Media, has called on Sonnenschein to assist in efforts to expand business opportunities in the public transit sector. Obie Media is a leading full service provider of out-of-home advertising products. Obie Media's services include providing advertising space in public transit systems for interior and exterior posters, murals, outdoor displays and "full wrap" advertising on more than 8,000 transit vehicles in 38 transit systems nationwide. Obie Media regularly competes for new public transit advertising contracts in major metropolitan markets. Our extensive experience with federal, state, and local regulations governing the award of transit system contracts has enabled Sonnenschein to guide our client in developing successful strategies for these procurements.
Adtranz
Sonnenschein assisted DaimlerChrysler's Adtranz group in winning a contract through competitive negotiations with the Bay Area Rapid Transit District (BART) to rehabilitate and refurbish approximately 450 existing BART cars. The total price of the contract, which Adtranz is now performing, is in excess of $350 million. Sonnenschein continues to assist Adtranz with regard to procurement matters on this and similar contracts.
Perkins & Will
Sonnenschein advised Perkins & Will in negotiating the architectural services agreement to design UCLA's new hospital and teaching facility. This $500 million project required the client to prepare and obtain UCLA's approval of overall design features, and then draft and issue design documents for phased implementation of the project under multiple separate construction contracts.
T.Y. Lin International
Sonnenschein has counseled the international structural design engineering firm, T.Y. Lin International, with regard to many of its projects including the design of the seismic retrofit of the Golden Gate Bridge and the design of the new eastern span of the San Francisco-Oakland Bay Bridge. Our lawyers have drafted and negotiated contracts for the client, and advised on risk management issues including insurance strategies.
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