Rules that come with public contracts
Companies that sell to federal, state, or city governments take on obligations that ordinary commercial customers do not impose. Federal contracts pull in procurement regulations and agency supplements by reference, and those can govern pricing disclosures, labor standards, cybersecurity, and domestic sourcing. State and city contracts in New York carry requirements of their own, including rules limiting contact with agency staff during a procurement and programs for minority- and women-owned business participation. The False Claims Act is the main enforcement tool on the federal side, and New York has a state counterpart; both allow whistleblowers to file suits on the government's behalf.
Where contractors get into trouble
Problems often start with ordinary business practices carried into a government setting. Billing for work that was not performed as described, misstating small business or minority-owned status, and failing to pass required terms down to subcontractors are common sources of exposure. Keep the full contract file, including incorporated clauses, certifications, and representations made at bid time, along with timekeeping and invoicing records. Treat employee concerns seriously and avoid any appearance of retaliation, because whistleblower complaints often begin internally. Some federal contractors also have a duty to disclose credible evidence of certain violations to the government.
Reviewing your position
Our review maps which governments you contract with, the contract types involved, and the clauses that create the most risk for your business. If an audit, a request for information, or a subpoena has arrived, we start with its deadlines and scope. If a possible problem has surfaced internally, we discuss how to investigate it, whether a disclosure obligation applies, and how to protect eligibility for future contracts, since suspension and debarment can be as consequential as any financial penalty. For subcontractors, we also review the flow-down terms accepted from the prime contractor, because those can carry obligations similar to a direct government contract.
