TABLE OF CONTENTS
FOR
COUNCIL APPROVAL PACKAGE
CONTRACT PERIOD: Date of Award (FY 2020) through Five Years thereafter (FY 2025)
CONTRACTOR NAME: Edelson PC
CONTRACT NUMBER: DCCB-2020-C-0020
CONTRACT CAPTION: Outside Legal Counsel to assist OAG with e-Cigarette Litigation
(Juul)
CONTRACT AMOUNT: NTE $55,000.000.00
1. Transmittal Letter
2. Council Contract Summary
3. Clean Hands Tax Certification
4. Agency Fiscal Officer Memo
5. Proposed Definitive Contract
6. Letter Contract dated 5/5/2020 (with 1 attachment)
7. Legal Sufficiency Memos
8. Legislation
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
KARL A. RACINE
June 29, 2020
The Honorable Phil Mendelson, Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Council of the District of Columbia is proposed
emergency legislation, the Contract No. DCCB-2020-C-0020 with Edelson PC Approval and
Payment Authorization Emergency Act of 2020 and accompanying emergency declaration
resolution (legislation) to approve the award of the proposed definitive multiyear Contract
Number DCCB-2020-C-0020 with Edelson PC.
The not-to-exceed contract amount is fifty-five million dollars ($55,000,000). The base period
of performance is from date of award through five years thereafter.
This contract will definitize the letter contract awarded on May 5, 2020. The Office of the Attorney
General requires the services of outside legal counsel to assist with litigation against Juul Labs,
Inc., the dominant market player in a spiraling public health emergency of teenage e-cigarette use,
as well as to assist with investigations of other e-cigarette manufacturers for violating the Districts
Consumer Protection Procedures Act (CPPA) in the design and marketing of e-cigarette products.
I am available to discuss any questions you may have regarding the proposed definitive contract.
To facilitate a response to any questions you may have, please have your staff contact James
Pittman, Deputy Attorney General for Legislative & Intergovernmental Affairs at 202-724-7517
or Janice Parker Watson, Contracting Officer, at 202-442-9882. I look forward to favorable
consideration of this contract.
Sincerely,
KARL A. RACINE
Attorney General
Enclosures
441 Fourth Street NW, Suite 1100 South, Washington, DC 20001, (202) 727-3400, Fax (202) 730-0484
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended,
D.C. Official Code 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Letter Contract)
(A) Contract Number: DCCB-2020-C-0020
Proposed Contractor: Edelson PC
Contract Amount: $55,000,000 Not-to-Exceed (5-Year) Total
Unit and Method of Compensation: Percentage of gross recovery to the District only
after recovery. Other direct costs are reimbursed
as authorized and approved by the District.
Term of Contract: Date of award through five (5) years thereafter
with four (4) two-year option periods
Type of Contract: Contingency Fee with a cost reimbursable
component
Source Selection Method: Exempt from Competition
(B) For a contract containing option periods, the contract amount for the base period and
for each option period. If the contract amount for one or more of the option periods
differs from the amount for the base period, provide an explanation of the reason for
the difference:
Base Period Amount: Not-to-Exceed $55,000,000.00
Option Period 1 Amount: Not-to-Exceed $55,000,000.00
Option Period 2 Amount: Not-to-Exceed $55,000,000.00
Option Period 3 Amount: Not-to-Exceed $55,000,000.00
Option Period 4 Amount: Not-to-Exceed $55,000,000.00
* There is a single contingency fee for the total Gross Recovery regardless of whether
recovery occurs in the base period or the option periods, if exercised.
Council Summary - Contract No. DCCB-2020-C-0020 Page 2 of 5
(C) The date on which the letter contract or emergency contract was executed:
The letter contract was executed on May 5, 2020
(D) The number of times the letter contract or emergency contract has been extended:
None, no extensions were required.
(E) The value of the goods and services provided to date under the letter contract or
emergency contract, including under each extension of the letter contract or
emergency contract:
The value of the goods and services provided to date is zero.
(F) The goods or services to be provided, the methods of delivering goods or services, and
any significant program changes reflected in the proposed contract:
The contractor will provide outside legal counsel to assist with litigation against Juul Labs,
Inc., the dominant market player in a spiraling public health emergency of teenage e-
cigarette use, as well as to assist with investigations of other e-cigarette manufacturers for
violating the Districts Consumer Protection Procedures Act (CPPA) in the design and
marketing of e-cigarette products. District teenagers and the public need protection against
Juuls deceptive and unfair trade practices.
This contract represents the exercise of authority granted to the Attorney General to award
contracts on a contingency fee basis by D.C. Law 19-168, 3012, 59 DCR 8025, as added
September. 20, 2012.
(G) The selection process, including the number of offerors, the evaluation criteria, and
the evaluation results, including price, technical or quality, and past performance
components:
Under D.C. Code 2-354.13(3), the procurement of these legal services is exempt from the
competitive procurement process. However, in the interest of transparency and acquiring
the best services for the District of Columbia (District), OAG issued a market survey to
research the availability of firms interested in assisting OAG in this matter. OAG made a
selection after careful consideration of the seven (7) submissions in response to the market
survey, which included interviews with interested firms. The selection was based upon the
best interests of the District.
(H) A description of any bid protest related to the award of the contract, including
whether the protest was resolved through litigation, withdrawal of the protest by the
protestor, or voluntary corrective action by the District. Include the identity of the
protestor, the grounds alleged in the protest, and any deficiencies identified by the
District as a result of the protest:
No protest was filed.
Council Summary - Contract No. DCCB-2020-C-0020 Page 3 of 5
(I) The background and qualifications of the proposed contractor, including its
organization, financial stability, personnel, and performance on past or current
government or private sector contracts with requirements similar to those of the
proposed contract:
Edelson PC is a nationally recognized leader in plaintiffs class, mass and government
enforcement actions. The firm has deep experience investigating and litigating a wide range
of high impact matters, representing government clients, including state Attorneys General,
and a depth of experience litigating (and negotiating settlements) in complex and multi-
party matters. Edelson represents the People of the State of Illinois, by and through the
States Attorney of Lake County, in one of the first government regulator cases against e-
cigarette company Juul for its predatory and deceptive marketing tactics. The firm also
represents nearly fifty governmental entitiesincluding a State Attorney Generalin
opioid litigation, some with claims pending in the In re Opiate Litigation MDL.
Edelson has the financial stability to sustain this litigation as shown by its history of
successful mass and class action practice for nearly two decades. The firm has focused its
practice on investigating and prosecuting large-scale, complex contingency matters (while
maintaining a number of non-contingency and commercial litigation-related matters to
diversify its portfolio). The firms Certified Public Accountant provided a statement that
the firm is financially sound and well positioned for the future.
Since its founding in 2007 (originally as a predecessor firm), Edelson has become one of
the countrys preeminent class, mass, and government action law firms. The firm has
prosecuted some of the largest and most cutting-edge cases in recent years and has secured
over $3 billion for its clients in settlements and verdicts. As a result, Law360 called
Edelson a Titan of the Plaintiffs Bar and a Plaintiffs Class Action Powerhouse.
Headquartered in Chicago, for the past two years Edelson has also been named one of six
Illinois Powerhouse firms, the only plaintiffs firm, as well as the only firm with fewer
than 500 attorneys (it has 25) to be so recognized.
(J) A summary of the subcontracting plan required under section 2346 of the Small,
Local, and Disadvantaged Business Enterprise Development and Assistance Act of
2005, as amended, D.C. Official Code 2-218.01 et seq. (Act), including a
certification that the subcontracting plan meets the minimum requirements of the Act
and the dollar volume of the portion of the contract to be subcontracted, expressed
both in total dollars and as a percentage of the total contract amount:
A subcontracting plan was not required for this competition-exempt procurement.
Council Summary - Contract No. DCCB-2020-C-0020 Page 4 of 5
(K) Performance standards and the expected outcome of the proposed contract:
The contractor is required to perform legal services, advice, and consultation to OAG in
a manner consistent with accepted standards of practice in the legal profession as set
forth in the contract, including achievement of the following outcomes:
o Assessment of the Districts proposed cost recovery in its litigation against Juul Labs,
Inc. and investigation and potential litigation against other manufacturers of e-
cigarettes.
o Assessment of costs incurred by the District and an estimate of the Districts future costs
for investigation and remediation potentially recoverable in cost recovery litigation.
o Injunctive relief, monetary relief, and other relief against all entities in the litigation.
(L) The amount and date of any expenditure of funds by the District pursuant to the
contract prior to its submission to the Council for approval:
No District funds have been expended or will be expended since this is a contingency fee
contract the contractor will be paid only from the proceeds of any recovery won by the
contractor according to the contingency fee agreement.
(M) A certification that the proposed contract is within the appropriated budget authority
for the agency for the fiscal year and is consistent with the financial plan and budget
adopted in accordance with D.C. Official Code 47-392.01 and 47-392.02:
The certification that the proposed contract is within the appropriated budget authority for
the agency for the fiscal year(s) is not applicable since funding will come from the
proceeds of any recovery won by the contractor according to the contingency fee
agreement as authorized by D.C. Law 18-160, 106a; as amended September 20, 2012 by
D.C. Law 19-168, 3012, 59 DCR 8025, Contingency fee contracts. See attached
statement from the Agency Fiscal Officer.
(N) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
Legal Sufficiency Memo is attached.
(O) A certification that Citywide Clean Hands database indicates that the proposed
contractor is current with its District taxes.
Citywide clean hands certificates dated June 8, 2020 indicates that Edelson PC is
current with District taxes.
(P) A certification from the proposed contractor that it is current with its federal taxes, or
has worked out and is current with a payment schedule approved by the federal
government:
The proposed contractor has certified that it is current with its federal taxes.
Council Summary - Contract No. DCCB-2020-C-0020 Page 5 of 5
(Q) The status of the proposed contractor as a certified local, small, or disadvantaged
business enterprise as defined in the Small, Local, and Disadvantaged Business
Enterprise Development and Assistance Act of 2005, as amended, D.C. Official Code
2-218.01 et seq.:
The proposed contractor is not certified by DSLBD as a local, small, or disadvantaged
business enterprise
(R) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None.
(S) A statement indicating whether the proposed contractor is currently debarred from
providing services or goods to the District or federal government, the dates of the
debarment, and the reasons for debarment:
The proposed contractor is not currently debarred from providing services or goods to the
District or federal government.
(T) Any determination and findings issues relating to the contracts formation, including
any determination and findings made under D.C. Official Code 2-352.05
(privatization contracts):
There are no issues relating to the contracts formation.
(U) Where the contract, and any amendments or modifications, if executed, will be made
available online:
The contract award, if executed, will be made available on the Office of Attorney General
website, https://oag.dc.gov/notice-contract-awards-over-100000.
(V) Where the original solicitation, and any amendments or modifications, will be made
available online:
The market survey and any amendments will be made available online on the Office of
Attorney Generals website, https://oag.dc.gov/jobs-partner-opportunities/doing-business-
oag.
Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: June 8, 2020 Notice Number: L0004135766
EDELSON P.C. FEIN: **-***2415
350 N LA SALLE DR STE 14 Case ID: 485884
CHICAGO IL 60654-5136
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE 47-2862 (2006)
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax homepage, click Clean Hands
and then the Validate a Certificate of Clean Hands hyperlink.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
KARL A. RACINE
MEMORANDUM
TO: Janice Watson
Agency Contracting Officer
Office of the Attorney General
FROM: Shilonda Wiggins Shilonda Wiggins
Agency Fiscal Officer
Office of the Attorney General
DATE: June 12, 2020
SUBJECT: Certification of Funding Availability for OAG Contingency Fee Contract
CONTRACT: Edelson PC - e-Cigarette (Juul) Litigation
CONTRACT NO: DCCB-2020-C-0020
The certification that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year(s) is not applicable since funding will come from the proceeds of any
recovery won by the contractor according to the contingency fee agreement as authorized by
D.C. Law 18-160, 106a; as amended September 20, 2012 by D.C. Law 19-168, 3012, 59
DCR 8025, Contingency fee contracts. If you have any questions, please feel free to contact me
at 724-5570.
441 4th Street, NW, Suite 1100S, Washington, D.C. 20001, (202) 727-3400, Fax (202) 347-8922
1. Caption Page of Pages
AWARD/CONTRACT Outside Counsel for e-Cigarette 1 47
Litigation
2. Contract Number 3. Effective Date 4. Requisition/Purchase Request/Project No.
DCCB-2020-C-0020 May 5, 2020 N/A
5. Issued by: Code CB0JPW 6. Administered by (If other than line 5)
Office of the Attorney General Office of the Deputy Attorney General
Support Services Division/Procurement Unit Public Advocacy Division
441 4th Street NW, Suite 1100 South 441 4th Street NW, Suite 650 North
Washington, DC 20001 Washington, DC 20001
7. Name and Address of Contractor (No. street, city, state and zip code) 8. Delivery
FOB Origin Other (See Schedule Section F)
Edelson PC