Superior knowledge doctrine is a principle in

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

contract law A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...

. The doctrine states that the government must disclose to a

contractor A contractor is a person or company that performs work on a contract basis. The term may refer to: Business roles * Defense contractor, arms industry which provides weapons or military goods to a government * General contractor, an individual o ...

otherwise unavailable information that is vital to contract performance. "The Helene Curtis doctrine of superior knowledge is now firmly embedded in the jurisprudence of government contracts." In order to recover under the superior knowledge doctrine, a contractor must prove each of the following elements: # The contractor undertook to perform the contract without vital knowledge of a fact directly affecting performance, cost, or duration of the contract. # The government was aware that the contractor had no knowledge of the information, and that the contractor had no reason to attempt to obtain this information. # A contract specification that the government supplied to the contractor misled the contractor, or failed to put the contractor on notice to inquire more. # The government failed to provide the relevant information.

History

The case most often cited as initiating the superior knowledge doctrine is '' Helene Curtis Industries, Inc. v. United States'' (160 Ct. Cl. 437, 312 F.2d 774 (1963)). Helene Curtis Industries received an

army An army (from Old French ''armee'', itself derived from the Latin verb ''armāre'', meaning "to arm", and related to the Latin noun ''arma'', meaning "arms" or "weapons"), ground force or land force is a fighting force that fights primarily on ...

contract for large quantities of a

disinfectant A disinfectant is a chemical substance or compound used to inactivate or destroy microorganisms on inert surfaces. Disinfection does not necessarily kill all microorganisms, especially resistant bacterial spores; it is less effective than st ...

chlorine Chlorine is a chemical element with the Symbol (chemistry), symbol Cl and atomic number 17. The second-lightest of the halogens, it appears between fluorine and bromine in the periodic table and its properties are mostly intermediate betwee ...

powder that had never been mass-produced. The powder was to be used by U.S. troops in

Korea Korea ( ko, 한국, or , ) is a peninsular region in East Asia. Since 1945, it has been divided at or near the 38th parallel, with North Korea (Democratic People's Republic of Korea) comprising its northern half and South Korea (Republic o ...

to disinfect mess gear and fresh fruits and vegetables. The Army prepared directions for production of the new disinfectant powder. Based on the

specifications A specification often refers to a set of documented requirements to be satisfied by a material, design, product, or service. A specification is often a type of technical standard. There are different types of technical or engineering specificati ...

, the contractor concluded that only a simple mixing technique was needed and submitted its bid. The Army already knew that a costly

grinding Grind is the cross-sectional shape of a blade. Grind, grinds, or grinding may also refer to: Grinding action * Grinding (abrasive cutting), a method of crafting * Grinding (dance), suggestive club dancing * Grinding (video gaming), repetitive and ...

operation would be required to produce the disinfectant powder. The Army also knew the contractor planned to simply mix the ingredients together, without performing any grinding. After the contract was awarded, the disinfectant failed to meet the specified

solubility In chemistry, solubility is the ability of a substance, the solute, to form a solution with another substance, the solvent. Insolubility is the opposite property, the inability of the solute to form such a solution. The extent of the solubil ...

test. The company then investigated and discovered the powder needed to be ground. The contractor sued for the costs of finding that it needed to grind the powder, because the Army should have shared this superior knowledge.

Later cases

Later cases have established that: # The government may have a greater obligation to provide information where the contractor is a

small business Small businesses are types of corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being able to ap ...

enterprise since it is presumed that such contractors will have less knowledge.{{cite journal, last=O'Donnell , first=Neil H. , author2=Patricia A. Meagher , year=2007, title=Terminations of Government Contracts IV. Excusable Delay as a Defense, journal=Federal Publications LLC # The Government has a duty to disclose its superior knowledge about the

procurement Procurement is the method of discovering and agreeing to terms and purchasing goods, Service (economics), services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agenc ...

history of the item and the fact that it had never been mass-produced without a waiver of certain specifications. The government's duty to disclose is heightened if the contractor is a small business. # The superior knowledge doctrine was potentially applicable to even

classified information Classified information is material that a government body deems to be sensitive information that must be protected. Access is restricted by law or regulation to particular groups of people with the necessary security clearance and need to know, ...

regarding prior secret technology. Although disclosure of the details of the classified information may not be necessary or possible, the Government may have a duty to give a warning or make some other more general disclosure.''McDonnell Douglas Corp. v. U.S.'', 27 Fed. Cl. 204 (1992)

Notes

United States contract case law