ONE PROCUREMENT SYSTEM – TWO STANDARDS: CONTRACTORS NEED TO KNOW WHERE THEY STAND WHEN IT COMES TO COMPLIANCE

A recent Government Accountability Office (GAO) report finding that federal agencies improperly compensate hourly rate, “blue collar” workers 75% of the time is just the latest example of issues that result in agencies getting a slap on the wrist while contractors engaging in the same behavior would be in line for keel hauling.  GAO said that agencies sometimes pay more than prevailing wage rates for covered workers, but also sometimes underpay them.  Any contractor offering hourly rate services knows well that they would face fines, legal fees, and potentially other sanctions for engaging in the same behavior, yet the impact on agencies seems to be minimal.  Another recent case of “do as I say not as I do” comes from GSA where the CIO’s office did a less than thorough job of ensuring Trade Agreements Act (TAA) compliance when acquiring security cameras.  Although that episode earned the CIO a trip to the Congressional woodshed, most contractors would trade that for the multiple years of litigation and fines that can come from their not complying with the TAA.  These are just two recent examples of a federal double standard of which contractors absolutely need to be aware.  Contractors are held to higher standards when it comes to complying with acquisition rules.  They can also find themselves identified as scapegoats when agencies try to share the blame for mishaps.  Companies should ensure that all their government interactions are covered with a reliable, transparent paper trail.  “Get it in writing” is an established best practice that can protect companies when compliance checks are made.  They need to also remember that, when it comes to complying with acquisition rules, what’s sauce for the goose is not always sauce for the gander.