Pillsbury Winthrop Shaw Pittman

Affiliates of indicted contractor may face longer suspension

By John E Jensen and Alexander B Ginsberg

The US Court of Appeals for the Eleventh Circuit recently confirmed that the government has the ability to suspend ‘affiliates’ of a suspended contractor, even though there is no allegation that the affiliates themselves had done anything wrong.

The Eleventh Circuit then went on to hold that affiliates of a government contractor facing indictment could be suspended longer than the 18-month limit contained in the Federal Acquisition Regulation (FAR), again even though the affiliates themselves were not accused of wrongdoing. The 31 December 2013 decision reversed the holding of an Alabama federal district court, which had held the affiliates’ suspension past 18 months impermissible.

Agility Defense & Government Services Inc v US Department of Defense, No. 13–10757, 2013 WL 6850891 (11th Cir. Dec. 31, 2013), involved two US subsidiaries (collectively ‘Agility’) of Public Warehousing Company PWC, a Kuwaiti corporation that was suspended in 2009 after it was indicted on fraud charges related to US military food supply contracts. The government also suspended Agility on the basis of affiliation, relying on the following FAR provision…

If you are registered and logged in to the site, click on the link below to read the rest of the Pillsbury briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.


Tower 42, Level 23
25 Old Broad Street