DO YOU HAVE $11M TO THROW AWAY? MAKE SURE YOUR PEOPLE – AND YOUR SUBS PEOPLE- ARE QUALIFIED

To get a piece of business contractors –both prime and sub – will sometimes “forget to pay attention” to bid specifications requiring properly trained or security-cleared personnel.  Similarly, they may start a project with qualified people and then switch them out post-award for less qualified people.  The temptation to get the job is substantial and, hey, we all trust our people, right?  Two contractors recently found out the hard way that federal agencies actually do expect you to provide qualified and cleared people and, if you’re a prime, to monitor who and what your subs use on a project.  Netcracker Inc. paid $11.4 million for providing tech workers without the proper security credentials.  Its partner, CSC, paid over $1 million for its failure to properly manage its subcontractor.  In addition to showing that the government will check up on your people, this case also shows that they expect you to check up on your subs people.  Netcracker now also faces a potential civil suit from their former partner.  Want to add insult to injury?  The whistleblower who filed the case walked away with $2.3M as part of the settlement.  Both primes and subs need to provide what and who they say they will.