Government Contracts Practice Partner Paul Khoury Weighs in on Ruling that Contractors Cannot Sue Over Insourcing

Paul Khoury, a partner in the firm’s Government Contracts Practice, was quoted in a May 26 article discussing a recent decision by a U.S. Court of Federal Claims judge that government contractors cannot sue over insourcing. Judge Francis Allegra ruled that contractors cannot challenge insourcing in court because it is an “internal agency decision” that “no court has jurisdiction over.” The ruling contradicts an earlier decision made by another judge in the Court of Federal Claims in a case Mr. Khoury litigated. “According to Judge Allegra’s decision, no one can challenge an insourcing decision in court even if it violates the law by resulting in obviously higher costs for the government,” Mr. Khoury said. “That result is not what Congress had in mind when it passed the law that gives the Court of Federal Claims jurisdiction over bid protests,” he concluded.