MAIL BAG! TAKING THE CO’S WORD

Week Ahead reader J. Lawrence asks, “Our company wasn’t sure if our new product was Trade Agreements Act compliant.  Our CO said during a phone call that she thought it was.  Can we proceed?”  Great question, J.  First, it’s important to remember that Trade Agreements Act (TAA) compliance ranks second only to Price Reductions Clause compliance in terms of whistleblower cases.  You could say they’re catching fire.  Whether you’re talking to a CO, tax professional or, dare we say, contract consultant, an oral opinion is worth the paper it’s written on.  This item could be on your Schedule contract long after your CO, or you, retire.  Even if that’s not true here, CO’s have reliably short memories when auditors get involved.  The short answer is “get it in writing.”  While you often will not be able to get a CO to respond to most questions with an affirmative response, posing your question in an e-mail in the form of, “we understand that our product is compliant, please respond via e-mail or letter if you feel differently” is a best practice for your procurement file.  Even better would be to get additional outside, written advice or opinions from attorneys or industry experts.  TAA compliance should not become a Hunger Games scenario for your company.  Make sure you don’t have to offer yourself as tribute.