Government Contract Compliance

As the world’s largest purchaser of goods and services, the United States Government offers tremendous business opportunities for companies in a variety of industries.  Companies doing business with the government find the market to be highly competitive and intensely regulated.  In particular, government contractors are subject to the Federal Acquisition Regulation (FAR) and the Supplemental FAR regulations of certain federal agencies.

Many of the complicated rules that apply to doing business with the government pertain to contract cost allowability, accounting system requirements, government audit rights, and the accuracy and completeness of information provided to the government.  Penalties for wrongdoing, particularly under the False Claims Act, or even for negligent non-compliance can be extreme and the consequences, such as debarment from obtaining federal contracts, can be severe.  Even the largest companies, with years of experience and infrastructure, can still run afoul of government regulations.

The special laws, regulations, and requirements that apply to government contractors are complex and in many cases are very different from the rules that apply in a purely commercial setting.  We ensure that our clients have a thorough understanding of these rules by advising them on specific compliance subject matter requirements.  To further assist clients, in 1988 we authored The Government Contract Compliance Handbook, which is published by Thomson-West, and is now in its fourth edition.  The Handbook presents practical information for government contractors on their compliance obligations and on how to develop and implement a compliance program.  We routinely assist clients in designing and maintaining effective compliance programs and in demonstrating their corporate responsibility to government procurement officials.