Potential Consequences for Failure to Comply with Disclosure Obligations

In a recent article for Reuters, I warned of the potential consequences if government contractors fail to comply with their disclosure obligations. I outlined the types of proceedings government contractors with federal contracts and grants with a total value greater than $10 million must report on the Federal Awardee Performance Integrity and Information System (FAPISS) in accordance with FAR 52.209-7, which include:

1. Criminal proceeding resulting in a conviction or other acknowledgment of fault.
2. Civil proceeding resulting in a finding of fault with a monetary fine, penalty, reimbursement, restitution, and/or damages greater than $5,000, or other acknowledgment of fault.
3. Administrative proceeding resulting in a finding of fault with either a monetary fine or penalty greater than $5,000 or reimbursement, restitution, or damages greater than $100,000, or other acknowledgment of fault.

Citing a recent, although unsuccessful, Government Accountability Office (GAO) bid protest, I demonstrated how “failure to make those disclosures can put awards at risk, among other serious consequences.”

The full article, “Failure to Disclose Can Cost You a Government Contract,” was published by Reuters on July 7 and is available online or in the PDF provided by the outlet.