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My biggest USAID question now: the Trump team is flagrantly breaking billions of dollars worth of contracts with Chemonics, DAI, Deloitte, and other contractors. It's obviously illegal and a judge would surely enjoin it. Why aren't the contractors suing?
David Watson 🥑
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All depends on the terms of the contracts. If there are nice break fees involved, that would explain a decision not to sue. But also, the contracts may have notice provisions that have been complied with. Or we could see a lawsuit pop in a couple hours.
Because, they’ll get even bigger contracts when 2/3 of the government W2s are axed and DOGE needs to hand out the contracts to replace their jobs.
It’s been a couple of days. And whenever you sue the government it turns out that they had no duty to do whatever the thing is that they clearly were supposed to be doing, or you have no standing, or it’s immune… better to wait a month or 2 and see what happens.
Most have 70-80% payment clauses for cancellations within a certain time period out. Theyll get paid anyway one their nonpayment happens and triggers a lawsuit.
There are various dynamics going on, the biggest of which is that individual contractors seem to think it's better to muddle on w/ a chance of future funding than to stick neck out first and risk repercussions. Though reported today that there is a lawsuit on the way
I imagine State AGs are lining up the most sympathetic plaintiffs. If Deloitte loses an IT contract, ehh, who cares? But if a foster child, cast by fortune to “a new life beginning on a stranger shore”, is cut off from aid Congress appropriated, THAT’s a sympathetic plaintiff.
Fear of retribution. What contractor sees what happened to Milley, DOJ lawyers and FBI agents who investigated Jan 6th, and imagines they can sue? Even when they win, it will be a Pyrrhic victory.
Also, they all have contracts with other agencies and want to have contracts in the future. Further they may be terminable on notice - 30, 60 ,90 days, 6 months - especially if merely services were being provided. A USAID contract may be a mere drop in the bucket in relation to
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This is an interesting point re the big consulting firms. But one assumes the contracts have out clauses due the dynamic nature of appropriations. So highly doubtful of any legal issues. Also they will want whatever remains under dept of state.
Sympathetic plaintiff is for sure the route they will go. Can we file some lawsuits on behalf of the most terrible ones to get those into discovery too?
Then they would have to prove that the money is being spent on what they claim they're using it for? 🤔
Have they actually cancelled any contracts, or are they just compiling a list of things to cancel?
Technically I don’t think anything is broken yet (although I admit it’s not perfectly clear). It appears the executive is working under a provision that allows him to freeze and review these expenses. So while people are talking about things being canceled, that hasn’t actually
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You’re not an attorney so allow me to explain. None of these people want any of their corruption to be laid bare in a court of law through the discovery process. The end.
You sir, do not know of which you speak. The Government can terminate any contract at any time for their own convenience. No reasons required. (Kinda sucks for us contractors tbh)
The courts will likely rule on this idea of impoundment. Hinges on whether the funds are “obligated” yet or not. If not, then he can halt them
One word my friend, "Discovery" In court that's a criminals worse word to here, especially when there are paper trails
Look up the Federal Acquisition Regulation, specifically Part 52, Sub-Part 49 - Termination of Contracts. This part establishes policies and procedures relating to the complete or partial termination of contracts for the convenience of the Government or for default.
I would assume the contractors know that suing may open themselves up to an investigation. They may be forced to give up information that would not fare well for them.
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Western Lensman
@WesternLensman
🚨RUBIO: USAID rife with “rank insubordination” — “we had no choice but to take dramatic steps to bring this thing under control." "They have basically evolved into an agency that believes that they're not even a U.S. government agency...they're completely unresponsive. They
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Maybe if you followed more of your followers you could have a meaningful discussion with them or doesn’t their opinion interest you?
They don’t want to explain why their admin/profit rates on those contracts exceed 50% of total contract value
Because it is a fractional piece of the bigger pie, and they won't risk alienating the current administration.
Most contracts can be terminated for cause or convenience. Contractors have remedies for the hit but no right to keep suckling at the teat.
Actually, it's pretty easy, legally, for the government to cancel contracts. Haven't you ever heard, "you can't fight city hall."
I am sure given the nature of what's being discovered, contractors, groups and their leaders are all weighing in on what's to they have to gain from suing vs what's they have lose during discovery.
Because they don't want their financials 'open to discovery' in the lawsuit. Even if they win, the public damage to their brands will destroy them.
It would not surprise me at all if the US federal government has to just pay out these contracts so the companies on the other side are just shrugging and saying we are going to get paid one or the other. That is how breaking contracts works.
I am not sure you understand contracts with the US Gov. They are subject to audits, and there are few limits to those audit clauses. This would likely be considered an audit by a government agency.
How much have both of you focused on any potential wrongdoing with USAID?
Actually stuff like this is the biggest USAID question. Please get your priority straight and fix your thinking.
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JKash 🍊MAGA Queen
@JKash000
After Elon’s recent post about only 10% of USAID going to its intended recipients, I found this shocking video released by PBS on January 5 in a new series Agents for Change that actually looks more deeply at this issue.
Because they’ve been partied to fraud. It doesn’t take a genius to figure this out. They would have to go through discovery.