Salazar V. Ramah — A Victory For Government Contractors

Law360, New York (June 28, 2012, 1:19 PM EDT) -- By a narrow 5-4 vote, the U.S. Supreme Court held on June 18 that a federal department or agency must fulfill each of its contractual obligations to pay a contractor’s costs under a cost-type contract despite the department’s competing internal priorities for allocation of the same congressionally appropriated funds. See Salazar v. Ramah, No. 11-551 (June 18, 2012). This rationale applies even when the appropriation act and the contract carries the explicit disclaimer, “subject to the availability of appropriations.”

The Ramah case is a step in...
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