Taking a competitor's proprietary data, or letting a new hire bring it to you, can be a federal crime under the Economic Espionage Act. In the tight world of government contracting, the line between competitive intelligence and theft matters.
Progress payments and interim billing let contractors get paid before final delivery, but they rest entirely on honest reporting of costs and completion. Overstate what you have done, and a cash-flow tool becomes a False Claims Act case.
A defense contractor paid $4.6 million after allegedly reporting a near-perfect cybersecurity score while its real score was deeply negative. The gap between what it certified and what it had is the whole case.
If your work reaches overseas, the Foreign Corrupt Practices Act bars paying foreign officials to win business and demands accurate books and records. Its reach is broad, and a local agent's bribe can become your federal crime.
The government purchase card makes small buys fast, which is exactly why it is a magnet for misuse, split purchases, and fraud. The dollar amounts look tiny, but the enforcement is not. Here is how to keep it clean.
U.S. sanctions bar you from doing business with blocked persons and countries, and OFAC liability is strict, meaning intent is not required. For contractors, screening your supply chain and payments is no longer optional.
A defense parts supplier will pay $4.9 million to resolve claims it used another company's identification code without permission and delivered parts that failed quality standards. A lone whistleblower pressed the case even after DOJ declined.
If you handle covered defense information, DFARS 252.204-7012 requires safeguarding it and reporting a cyber incident to DoD within 72 hours. Missing the clock, or misstating your safeguards, is where False Claims Act exposure begins.
Filing a claim or request for equitable adjustment is your right when the government owes you. But inflate it or certify it falsely, and the same claim can trigger fraud penalties and forfeiture. Know where the line is.
Giving anything of value to a federal official to influence an official act is bribery, a serious felony under 18 U.S.C. 201. Even a gratuity given because of an official act is illegal. The line is thinner than most contractors think.
