Many statutes and the FAR address in detail requirements for proper and accurate pricing, cost accounting, certifications of compliance, and other ethical and business conduct. Failing to comply with any one of these many laws or regulations may subject contractors and subcontractors alike to substantial liability under the False Claims Act and other fraud-related statutes. Enforcement by the Department of Justice and various agency Offices of Inspector General (OIG) has increased significantly over the last few years, and headlines regularly highlight the millions of dollars recovered from defense, aerospace, construction and health care companies. Additionally, private individuals (“whistleblowers”) can bring qui tam lawsuits against an organization, even when the government does not, and collect money for such violations. Likewise, businesses performing work with or for the government are subject to extensive ethics rules and obligations.
Practices