Watch Out, Affiliates Of Suspended Government Contractors

Law360, New York (January 31, 2014, 3:45 PM EST) -- On Dec. 31, 2013, the Eleventh Circuit Court of Appeals resolved a potential ambiguity in the Federal Acquisition Regulations and held that suspensions of a parent corporation could extend to affiliates, even beyond 18 months, as long as legal proceedings have been initiated against the parent (not the affiliates) during that time.

The matter began in November of 2009, when a federal grand jury indicted Public Warehousing Company KSC, in a multibillion-dollar fraud case relating to supplies of food to American military personnel in the Middle...
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