Top Legal Issues for Government Contracting
Contracting with the federal government can be a growth opportunity for your business. However, there are many legal requirements you need to be aware of when working with the government; not knowing the rules and regulations could lead to the suspension or debarment of your business.
To dive in deeper, we recently hosted a live podcast on recent changes in suspension and debarment. An expert panel covered top legal issues that could potentially lead to suspension or debarment if not handled properly. Check out highlights from the podcast below.
Tax & Felony Reporting
The IRS will determine, based on tax findings, if a company is in good standing to receive government contracts. If the IRS finds a company ineligible for future contracts, there are two consequences that a company could face, suspension or debarment.
Mandatory disclosure is an important aspect of government reporting requirements. In 2008, regulations were put into place for government contractors to inform the government in a timely manner if they had credible evidence of a violation of certain criminal or civil laws, or significant overpayment on a contract. Failure to provide disclosure could be a basis for suspension or debarment.
Human Trafficking Reporting
Human trafficking has become an increasing concern for the government. If a company operates internationally, the risk of being noncompliant may increase because of hired recruiters who may have business practices that fall under the U.S. government’s definition of human trafficking.
Cyber Security Reporting
Cyber security is another major issue that not only affects the commercial sector, but also the government sector. The Department of Defense (DOD) handles cyber incidents, and has issued new rules that apply to certain government contracts, such as a 72-hour reporting period for cyber incidents during which the DOD needs to be notified.
The Yates Memo
The Yates Memo provides guidance on how to prosecute corporate crimes. The memo focuses on individuals within an organization, rather than just an organization itself, and it requires companies to give information on individual perpetrators. Business owners should be aware of what the Yates Memo outlines and think about how to handle situations when the memo may apply to them.
Three Things You Can Do This Week:
- Schedule Time With Your Lawyer: Your lawyer can give you all the details on recent changes in government contracting and help make sure you’re in compliance with any and all regulations. Set up an appointment this week to make sure you’re business is safe.
- Determine Your Human Trafficking Risks: Recent changes in human trafficking laws could affect your business. Consider Dun & Bradstreet’s Human Trafficking Risk Index to help determine if you may be at risk for human trafficking in your supply chain.
- Update Your Team/Suppliers: Make sure the appropriate teams members and partners have been updated on legal changes so your business can stay compliant. Set up a meeting with your team and your suppliers after speaking to your lawyer and brief them on the new changes.