Government Contracts Lawyer & Attorney : Sheppard Mullin Law Firm : Bids, Licenses, Awards, Conflict of Interest.

On April 23, 2008, the U.S. House of Representatives passed H.R. 3033, "Contractors and Federal Spending Accountability Act," agreeing by voice vote that GSA would maintain a centralized database of government contractors.  The GSA database would collect information on contract defaults, suspensions, and debarments, as well as "any civil or criminal proceeding, or any administrative proceeding" for which a contractor paid at least $5,000 in restitution, that has been "concluded" by the federal or state governments.  If a contractor committed in a three-year period more than one offense for which it could be debarred, the contracting officer must affirmatively demonstrate the contractor's responsibility prior to award.

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Do assure that the Government person with whom you are dealing has actual authority to bind the Government.

Do remember to “get it in writing.”

Do recognize that the Government wants your intellectual property -- address that issue before you sign a contract.

Do treat certifications in your contracts with a seriousness of purpose – unless you have a thing for orange jump suits and iron bars.

Do seek “commercial item” status whenever possible – it mitigates significant cost, accounting, and IP risks.

Don’t for a moment think that subcontractors are not “Government contractors” – just read the flow downs if you ever think otherwise.

Don’t treat your Multiple Award Schedule Contract as just another commercial contract -- the items may be “commercial” but the contract most assuredly is not.

Don’t have your “Compliance” and “Contract Administration” functions report through “Sales” – you will be “uncomfortable” explaining that hierarchy in an enforcement proceeding.

Don’t take the client to lunch.

Don’t ever underestimate the multi-layered power of the Government – or its willingness to use it against you.

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