On August 29, the Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") affirmed the dismissal of a qui tam relator's False Claims Act ("FCA") suit against an IT contractor in which the relator alleged that the contractor violated the FCA by supplying computers allegedly manufactured in China. U.S. ex rel. Folliard v. Gov't Acquisitions, Inc., — F.3d —, 2014 WL 4251150 (D.C. Cir. 2014). The relator alleged that the contractor, Govplace, Inc., improperly certified that computers and other IT equipment sold on certain General Services Administration ("GSA") contracts complied with the Trade Agreements Act ("TAA") restrictions, because a subcontractor supplied computer products manufactured in China. The subcontractor certified that these products were TAA-compliant; the defendant in turn relied on these certifications to certify to GSA that the products were compliant. The district court found that no evidence suggested the contractor had "knowingly" submitted false claims, as required by statute, because the contractor had not acted in "reckless disregard" of the possible falsity of the supplier's certifications that the products in question were manufactured in compliance with the TAA, and had explicitly told the GSA that it was relying on the supplier's certifications during compliance reviews. The D.C. Circuit agreed, favorably noting that the contractor informed the government on multiple occasions of its reliance on the certifications, and stating that a contractor in similar circumstances "ordinarily is entitled to rely on a supplier's certification that the product meets TAA requirements."
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