JUSTICE PRESS RELEASE SHOWS CONTRACT COMPLIANCE ENFORCEMENT ALIVE & WELL
The Department of Justice obtained more than $3.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government in FY’17 according to a recent DOJ release. While about two-thirds of the amount was in health-care related fraud, government contract compliance continues to be a top focus area for civil False Claims Act work. Schedule contracts, specifically, continue to receive attention. Indeed, it is likely that some part of the health-care number is related to cases against VA Schedule contract holders. The DOJ press also cited the resolution of a case against IT 70 Schedule contractor CA, Inc., where the firm agreed to pay $45 million to resolve allegations that it did not comply with various aspects of its Schedule contract. There are reportedly a substantial number of current civil False Claims Act cases involving GSA and VA Schedule contractors. Even before any fines or penalties are levied, these actions can cost contractors millions in legal fees and lost productivity. Suddenly, a sound investment in an experienced contract manager and a reasonable compliance program seem like bargains. Make sure your company, including senior management, understands that compliance is part and parcel of your life as a government contractor.