CGI Fed. Inc. v. United States, No. 14-5143 (Fed. Cir. 2015)
Annotate this CaseThe federal Centers for Medicare and Medicaid Services (CMS) uses contractors to determine if Medicare claims were correctly paid. If the contractor identifies an overpayment, CMS sends a demand letter to the provider seeking repayment. Under contracts from 2008, the contractors invoiced CMS for a contingency fee when the overpayment was collected, typically 41 days after the demand letter. In 2014, CMS issued new requests for quotes for these recovery services, with new terms requiring the contractors to wait to invoice CMS until any challenge to the repayment request passed the second level of a five-level appeal process, typically 120 to 420 days after the demand letter. Five contractors bid; CGI did not. Before bidding closed, CGI filed a pre-award protest at the Government Accountability Office. While the protest was pending, bidding closed. The GAO subsequently denied the protest. CGI filed a protest in the Court of Federal Claims. That court granted the government judgment on the administrative record, holding that the modified payment terms did not violate statutory or regulatory provisions nor unduly restrict competition. The Federal Circuit reversed, holding that CGI had standing and citing Federal Acquisition Regulation Part 12’s prohibition against including contract terms inconsistent with customary commercial practice.
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