Federal News
US Court Upholds AECOM Contract Ruling
March 19, 2026
The US Court of Appeals for the Second Circuit upheld a New York federal judge's decision denying whistleblower Hassan Foreman's attempt to reopen a False Claims Act lawsuit against AECOM. The suit alleged improper billing under a US Army support contract in Afghanistan. The court found that the government was aware of the alleged contractual violations but continued payments and extended AECOM's contract multiple times, indicating the issues were not material to payment decisions.
- This ruling underscores the importance of government awareness and acceptance in contract dispute assessments, signaling that continued payments and contract extensions may weaken claims of material violations.
- Procurement professionals should note the legal precedent that government knowledge and actions can influence False Claims Act litigation outcomes.
- Contractors working on overseas support contracts should maintain thorough documentation and communication with government agencies to mitigate risks of whistleblower claims.
- Agencies may consider this case when evaluating contract compliance issues and deciding on contract extensions or payments amid alleged irregularities.
The government knew about alleged contractual violations but continued to make payments, and extended AECOM’s contract several times.
— US Court of Appeals for the Second Circuit
Agencies
United States Army, US Court of Appeals for the Second Circuit, New York Federal Court
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AECOM
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Sources
- AECOM Defeats Whistleblower’s Bid to Reopen Afghanistan Suit · Bloomberg Government News · Mar 19