Long-time reader T. Selleck writes, “My CEO has had it with being a federal prime contractor.  We still want to sell to federal agencies, but we’re going to let someone else hold the contract.”  This is a popular, but dangerous, approach for commercial companies to consider these days, T.  With all of the new rules and increased oversight, some could make a legitimate complaint that federal business is best left to full-time federal primes.  Yet, not being a prime often means that companies that still have their products sold into this market aren’t paying attention.  To be clear:  Whether or not you’re a prime, if your stuff is being sold in the federal market your firm may be on the hook for complying with a host of contract-related rules.  Dismantling your entire federal enterprise is probably the worst thing a former prime can do.  Many times such companies end up being part of an audit or whistleblower investigation and have no idea that they were doing anything wrong (not an excuse) and have no idea how to defend themselves (an expensive lesson).  Not all businesses are set up to be prime contractors, but subcontractors, a class that can include suppliers depending on the views of specific enforcement agencies, must be aware of what their responsibilities are and ensure that compliance remains an important part of even their indirect federal business.