Government Contracts and False Claims
Companies that secure government contracts and grants become subject to the financial, accounting and legal requirements of the granting government agency. Although the precise requirements of government agencies will vary, the following principles generally apply:
• Countries have adopted general rules for selling goods or services to their governments or obtaining grants;
• Purchasing or granting government agencies adopt their own specific requirements, which will be extensive and require companies to make changes to their systems of internal controls; and
• Failure to adhere to purchasing or granting government agency requirements can result in significant fines, penalties (especially under the U.S. False Claims Act or “whistleblower” legislation) and prohibitions against further contracts with the government.
The attorneys at MDO Partners have represented government contractors and grantees in private legal practice, have obtained and administered grants as the executive director of a university’s multidisciplinary trade law center, and counseled corporations and associations on government contract issues as in-house counsel. This extensive experience can be invaluable to clients in all aspects of government contracts and grants, especially avoiding the significant pitfalls in this complex area.