SHOULD SOMEONE ELSE HOLD YOUR CONTRACT? CREXIT NOT A CURE

Contract compliance can be burdensome. Pricing disclosures, country of origin issues, small business matters, and a slew of special contract clauses all require specialized knowledge, and expense, in order to conduct all but the simplest transactions. Companies sometimes throw up their corporate hands and decide to let someone else carry the load for them. This contractor exit, or “crexit”, is often thought to end a company’s obligation to pay attention to government business rules. Not so fast. Even if you’re selling through a re-seller, the feds still have ways to get to you if there’s a problem. Did you supply pricing information to that re-seller? The government can still look at your books to ensure it was accurate. Certify proper country of origin? They can check that, too. The fact is that whether or not you’re a prime contractor, your company must pay attention to government contract rules because many of them apply to suppliers and subcontractors. Our experience, in fact, is that the whole “arms length” relationship business makes companies more vulnerable to problems because of the false sense of security that comes from not being a prime. The bottom line is that if the feds want you, they will find a way to get to you. Better to be prepared than caught by surprise.