Procurement & Government Contracting Compliance: What You Need To Know

Source:NATLAWREVIEW

Government spending is massive. In fact, “the US government is the single largest consumer in the world, spending more than $760 billion on products and services each year.” For businesses seeking to access this market, an understanding of procurement and contracting compliance is critical.

As Erin Felix of Polsinelli aptly puts it, “in the market for government contracts, compliance pervades all aspects of a company’s life.”

Compliance in a Nutshell

The Federal Acquisition Regulation (FAR) outlines the foundational rules by which executive agencies should operate as they seek to acquire goods and services. In addition to the FAR, individual agencies maintain their own supplement, each tailored to the agency’s mission and procurement practices. For example, the Department of Defense (DoD) maintains the Defense Federal Acquisition Regulation Supplement.

As contractors prepare for the bidding process, they should thoroughly review FAR, the relevant supplement(s), and any additional obligations based on the procurement type to ensure they are fully eligible and prepared to participate legally, operationally, and strategically.

Once bidding begins, contractors must remain vigilant and be prepared to challenge solicitations or evaluations if they see an error or inconsistency.

Once a contract is awarded, operational compliance is essential. Less visible but equally important are regulatory obligations like wage and hour laws, affirmative action compliance, cybersecurity standards, and ‘Buy American’ sourcing.

Procedural compliance becomes important as well, especially under the Contract Disputes Act, which dictates how contractors can raise claims and navigate disputes.

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