BLOG: Building Compliance: Construction Industry Concerns Under FCA

August 28, 2019
By Sarah L. Nash
The Department of Justice (DOJ) has settled and obtained judgments in excess of $2.8 billion for false claims against the government last year. Over $2.1 billion of these cases arose from lawsuits filed under the qui tam provisions of the False Claims Act (FCA) which incentivizes whistleblowers to file claims. Government contractors in the construction industry – both primes and subs – face a higher risk of FCA liability because of the complicated nature of construction contracts and prevailing wage obligations. Below we discuss the top FCA issues facing construction contractors and protection strategies for avoiding them.

BLOG: Cybersecurity Meets the FCA: What the Chinese Telecom Ban Means for Government Contractors

August 27, 2019
By Peter B. Ford and Anna R. Wright
Government contractors are required to comply with a new set of prohibitions on telecommunications equipment acquired from certain Chinese companies, and they may face False Claims Act liability since the prohibitions require certification that they have not used prohibited products. These prohibitions come from the John S. McCain National Defense Authorization Act for Fiscal Year 2019,* which contains a number of provisions intended to keep U.S. government funds from moving to Chinese government-owned corporations. Section 889 in particular lists companies the Chinese government owns that are now prohibited sources of supply for telecommunications equipment. Effective August 13, 2019, these prohibitions are incorporated into the FAR in Subpart 4.21.

BLOG: The Big Miss: When Job Misclassification Strikes Hard

August 23, 2019
By Nichole D. Atallah
Everywhere you look companies are being hit hard with claims of misclassification of workers under labor regulations. So far in August 2019, Department of Labor (DOL) has announced over $2 Million in damages paid to employees, and this doesn't even include voluntary settlements handled outside of DOL. In fact, General Dynamics was recently hit with a $170,000 settlement regarding claims that the company misclassified call center workers under the Service Contract Act (SCA). To avoid such penalties and to remain legally compliant, employers—including government contractors—should seek experienced legal counsel to help them properly classify a position, as well as create a system for future classifications.

BLOG: Prepare Now to Secure "Controlled Unclassified Information"

August 21, 2019
By Emily J. Rouleau
Nowadays, many people are familiar with at least some types of protected information, whether in the form of personal health information or government-classified information. But, contractors working with the Department of Defense ("DoD") must remember to protect another type of information: controlled unclassified information ("CUI"). Failure by government contractors to put processes in place that protect CUI could result in the loss of contracting opportunities or potential False Claims Act-related litigation.

BLOG: Why Government Contractors Should Know About the Delaware LLC Division Statute

August 20, 2019
By Kathryn L. Hickey
Relatively often in the government contracting industry a business finds itself in the position where, for one reason or another, it needs to split, fracture, or otherwise reorganize its operations by separating one line of business or division into a separate entity. When prime federal contracts are transferred from one entity to another, it often necessitates a novation agreement with the contracting government agency. Many government contractors discover the novation process to be relatively lengthy and burdensome, with the potential to delay or hinder the ultimate business objectives, and traditional corporate restructurings can be cumbersome and inefficient. The Delaware Limited Liability Company Act (DLLCA) LLC Division Statute provides a potential streamlined path to entity reorganization.
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