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Iraq Reconstruction Contract Court Decision

(EMAILWIRE.COM, June 04, 2003 ) The U.S. Court of Federal Claim declared a contract improper and illegal and in violation of the Federal Acquisition Regulations for failing to take into consideration cost considerations in the case of Al Ghanim v. US decided May 8, under seal, and released May 28 for publication.. According to Sam Z. Gdanski, International Government Contracts Attorney, Suffern, N.Y., who was the lawyer for the plaintiff. This is the first case since the Iraq conflict finding such a contract improper. "This will have serious repercussions for future review of all Iraq Reconstruction Contracts which requiring adherence to Federal Procurement Regulations in the award of the same and also affecting many potential sub-contractors."

Gdanski said he has received calls to review other government contract actions. He declined to disclose which specific contracts he was reviewing.

The court in Al Ghanim v US, after finding the contract to be improper as well as the plaintiffs suffering irreparable harm because of lost profits, declined however to issue an injunction because of the war in Iraq saying security concerns overrode the other criteria. Gdanski will be seeking attorney's fees and Bid and Proposal expenses and other costs. This will be a benchmark case governing billions of dollars expected to be awarded in the reconstruction of Iraq and to other Federal Government contract matters. Gdanski, a former Assistant Counsel DOD, now in private practice in Suffern in New York, represents many International Government contracts and U.S. contractors. .

The court said that the failure to conduct a cost realism assessment was a serious violation and would ordinarily grant an injunction, but for the "war" in Iraq.

Gdanski can be reached at Gdanski@prodigy.net; office number 845-262-4800, cell phone 914?589-0015

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