The government continues to prioritize fraud involving government contractors, as the Department of Justice’s (DOJ) most recent annual report on civil fraud recovery shows.

Although the majority of government recoveries are related to the healthcare industry, the government still recovered hundreds of millions of dollars in 2022 alone not related to the healthcare industry. Government contractors have faced a broad array of allegations in False Claims Act (FCA) cases, including those related to eligibility for government programs, false certifications, provision of defective products, and the receipt of kickbacks. To illustrate these areas of enforcement risk, this post summarizes recent key settlements involving government contractors.

Continue Reading on InsidetheFalseClaimsAct.com

On March 22, the Department of Defense (DOD) issued a proposed rule that would amend the Defense Federal Acquisition Regulations (DFARS) to require certain contractors to provide the Defense Contract Management Agency (DCMA) with relevant export authorizations (i.e., export licenses, exemptions, or exceptions). Currently, contractors are only required to make their export authorizations available for DCMA personnel to review at the contractor’s site. This rule would change that by shifting the burden to federal contractors.

Continue Reading Department of Defense to Require Contractors Proactively Provide DCMA with Export Authorizations

I recently outlined the requirements that government contractors must observe when using Disadvantaged Business Enterprises (DBEs). A DBE is categorized as “for-profit businesses which are at least 51% owned and controlled by socially and economically disadvantaged individuals.” The Infrastructure Investment and Jobs Act (IIJA) emphasizes the use of DBEs when awarding contracts and requires that prime contractors commit a certain amount of the award to DBEs that perform a “commercially useful function.” While not explicitly defined, “there is a presumption that the DBE is not performing a ‘commercially useful function’ when it performs less than 30% of the contract’s total cost with its workforce,” I explained in the article.

Continue Reading Compliance Considerations for Government Contractors Using Disadvantaged Business Enterprises

On August 9, 2022, the CHIPS and Science Act was signed into law allocating $52.7 billion in funding to the semiconductor industry. The legislation represents a historic investment in a critical industry and is designed to drive innovation and global economic competitiveness.

Continue Reading First CHIPS Opportunity Lays Out Requirements and Application Process 

You are reading Bass, Berry & Sims’ February 2023 edition of our Monthly Enforcement Roundup, where we bring notable enforcement actions, policy changes, interesting news articles, and a bit of our insight to your inbox every month.

To stay up to date, subscribe to our GovCon & Trade blog. If you have questions about any of the actions mentioned and how they relate to your business, contact our firm’s international trade team. We welcome your feedback and encourage sharing this newsletter with anyone interested.

February saw several interesting enforcement actions. From a Chinese “spy balloon’s” cross-country journey to the first anniversary of the war in Ukraine, the news of the day seemed to drive much of the enforcement activity. Let’s get into it!

Continue Reading International Trade Enforcement Roundup – February 2023

On December 19, 2022, the U.S. Small Business Administration (SBA) issued a proposed rule that would amend the SBA regulations to implement Section 870 of the National Defense Authorization Act (NDAA) of 2020. Section 870 makes noteworthy changes to the requirements a federal contractor must adhere to when attempting to obtain subcontracting credit for lower-tier subcontracts. 

Continue Reading SBA Proposed Rule Permits Prime Contractors to Receive Subcontracting Credit from Any Tier

I am looking forward to participating in a webinar titled, “Federal Government Contracts: New SBA Certification Program for Veteran-Owned Small Businesses” hosted by Strafford on February 28, 2023, from 1:00 pm-2:30 pm EST. Our panel will guide counsel on navigating the SBA certification program for VOSBs and SDVOSBs effective Jan. 1, 2023. We will review eligibility requirements, crucial certification procedures, and compliance obligations for entities and joint ventures. The panel will also offer certification best practices for receiving future set-aside or sole-source federal government contracts.

Continue Reading [WEBINAR] Federal Government Contracts: New SBA Certification Program for Veteran-Owned Small Businesses

Over the last few years, the government has shifted away from lowest price technically acceptable valuations placing a larger importance on past performance. The past performance requirement can sometimes create obstacles for firms who lack the required substantive past performance bonafides. A recent Government Accountability Office (GAO) decision offers another avenue as the agency attributed the past performance of two joint venture (JV) partners who previously worked as a prime and subcontractor on similar contracts to their Mentor-Protégé JV. 

Continue Reading Joint Venture Past Performance Can Be Gleaned from Previous Prime-Sub Relationships

All government contractors routinely review and negotiate subcontractor agreements. Whether you are the prime or the subcontractor, these agreements are critical for delivering solutions to government customers and capturing federal compliance requirements.

Please join our panel of Bass, Berry & Sims Government Contracts experts – Richard Arnholt, Todd Overman, and Sylvia Yi – along with our in-house colleague, Chad Pryor, Chief Counsel, Public Sector at TTEC, to discuss the art of negotiating subcontractor agreements and best practices for ensuring a successful relationship for both parties.

The webinar will take place on Monday, March 6, 2023, from 1:00 p.m. – 2:00 p.m. ET. Click here to register.

Continue Reading Register Now | Subcontract Negotiation Strategy and Best Practices Webinar

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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