Can the federal government declare a contract “void ab initio” or void from the beginning? Yes, if the government can “prove that the contractor (a) obtained the contract by (b) knowingly (c) making a false statement.” MLB Transportation v. U.S., 2025 WL 2962897, *8 (Fed.Cl. 2025) (citation omitted).

Where a contractor “obtained [a] contract by knowingly falsely stating that it was a small business … [the] government contract [is] tainted from its inception by fraud [and] is void ab initio.” The general rule that “a Government contract tainted by fraud or wrong-doing is void ab initio … protects the integrity of the federal contracting process and safeguards the public from undetectable threats to the public fisc.” A contract found to be void ab initio has “no legal effect,” and is “[n]ull from the beginning, as from the first moment when a contract is entered into.”

MLB Transportation, supra (citations omitted).