The superior knowledge doctrine is a principle in

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

contract law A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more Party (law), parties. A contract typically involves consent to transfer of goods, Service (economics), services, money, or pr ...

which states that the government must disclose to a contractor any otherwise unavailable information that is vital to contract performance. It is also referred to as "the Helene Curtis doctrine of superior knowledge. "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''.

Helene Curtis Industries Helene Curtis Industries, Inc. was an American cosmetics and beauty parlor products firm based in Chicago. The company acquired a hair-coloring line through the acquisition of a competitor business. Later the retailer diversified into the field of ...

received an

army An army, ground force or land force is an armed force that fights primarily on land. In the broadest sense, it is the land-based military branch, service branch or armed service of a nation or country. It may also include aviation assets by ...

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 ...

chlorine Chlorine is a chemical element; it has 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 between ...

powder that had never been

mass-produced Mass production, also known as mass production, series production, series manufacture, or continuous production, is the production of substantial amounts of standardized products in a constant flow, including and especially on assembly lines. ...

. The powder was to be used by U.S. troops in

Korea Korea is a peninsular region in East Asia consisting of the Korean Peninsula, Jeju Island, and smaller islands. Since the end of World War II in 1945, it has been politically Division of Korea, divided at or near the 38th parallel north, 3 ...

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 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 chemical substance, substance, the solute, to form a solution (chemistry), solution with another substance, the solvent. Insolubility is the opposite property, the inability of the solute to form su ...

test. The company then investigated and discovered that the powder needed to be ground. The contractor

sued A lawsuit is a proceeding by one or more parties (the plaintiff or claimant) against one or more parties (the defendant) in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. T ...

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 a small number of employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being ...

enterprise since it is presumed that such contractors will have less knowledge. # The Government has a duty to disclose its superior knowledge about the

procurement Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual ...

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 confidential material that a government deems to be sensitive information which must be protected from unauthorized disclosure that requires special handling and dissemination controls. Access is restricted by law or ...

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)

References

{{reflist United States contract case law