Government contractors can be excused if they’re a bit paranoid about whether federal agencies are seemingly looking at their every move.  Agency IG’s, DCAA, DCMA, DOL, SBA, and EPA are just some of the entities that can knock on a contractor’s door.  A recent Wall Street Journal editorial also makes clear that the thick clouds of government oversight aren’t limited to contractors.  “Companies representing about 40% of the market capitalization of the S&P 500 are under investigation by the Justice Department for something,” wrote the Journal on October 16^th.  “Make money, or build a better mousetrap, and sooner or later Uncle Sam is coming after you,” they state.  Even companies that have done nothing wrong may still be examined.  Success drives scrutiny across the oversight spectrum.  All of this adds to the cost of doing business whether it’s increased outside legal expenses, or the time taken up by addressing each potential problem.  Federal contractors aren’t unique in this circumstance but do have the distinction of having an entire additional set of rules and regulations from commercial market companies.  Companies selling to the government, especially those with larger profiles, must increasingly bake in the cost of legal compliance and defense fees as part of their business operation.  A small investigation here and small inquiry there can quickly eat into the bottom line of an unprepared company.   While this, of course, can increase prices charged to government agencies and simultaneously help drive less committed companies out of the market all together, that does not seem to be a risk overseers calculate.  All successful companies, including contractors, must understand that increased oversight is a growing cost of doing business and plan accordingly.