DON’T CUT COMPLIANCE CORNERS, EVEN IN A PANDEMIC

Anecdotal information is emerging about contractors rushing to meet federal customer needs on an increasingly-wide range of pandemic-related projects, but failing to ensure that they maintained compliance with applicable contract terms.  We don’t mean to seem school-marmish, but the reality is that contractors must comply with applicable contract terms and conditions whether serving a client with an urgent need or in the normal conduct of business.  Additionally, contractors cannot “assume” that rules were waived.  While some waivers have been issued for pandemic-related acquisitions they are very closely defined.  It is important to have those waivers in your contract file, too, before you cut a corner.  The “my customer told me it would be ok” defense doesn’t work without an actual document to back it up.  Experienced contractors know all too well that customers will also hedge on whether they said something was “ok” if a compliance issue arises.  Remember that customers are just as wary of their inspectors general as you are.  Competitors, too, will be watching.   The annals of False Claims Act litigation show that competitors absolutely know enough about each other’s business to be suspicious and take action when they believe a violation has occurred.  The result could be costly litigation for your company and/or a hit to your reputation, even though you thought you were doing your patriotic duty to help a customer in need.  Cutting a corner now doesn’t help anyone if you end up running into a wall later on.