An article by Corporate/Real Estate partner Robert Bodansky and Labor & Employment counsel Regina Grattan was published in the December 27 issue of Bloomberg BNA’s Federal Contracts Report. In the article, Bob and Regina outline the equal employment opportunity and affirmative action obligations imposed on federal contractors, and explain how the laws change depending on the dollar amount of the contract.
According to the authors, it is not uncommon to acquire a company without knowing that it performs government contracting work, which involves many reporting obligations. They emphasize, “The lesson to be learned here is clear: you need to make sure as part of your due diligence whether the target company or property has any contract or, indirectly, a subcontract with the federal government. If it does, you need to work with someone knowledgeable in government contracting and OFCCP regulations to help structure the deal before you close, so as to minimize any unanticipated consequences.”