© Sheppard Mullin Richter & Hampton LLP 2012

Everything You Always Wanted To Know About Government Contracts Compliance In Five Easy Slides

Jonathan S. AronieJune 4, 2013

“It takes 20 years to build a reputation, and five minutes to ruin it. . . . .” -Warren Buffett

Five High Risk Areas

Country of Origin Rules

GSA Schedule Price Reductions Clause

Mandatory Disclosure Rule

Labor Qualifications Requirements

Gifts & Gratuities Rules

“A child of five would understand this. Send someone to fetch a child of five.” -Groucho Marx

Five Risks of Non-Compliance

Breach of contract action

Termination

False Claims Act violation

Suspension/debarment

Criminal prosecution

“I busted a mirror and got seven years of bad luck, but my lawyer thinks he can get me five.” -Steven Wright

Five Unfortunate Developments

COs are far less willing to be creative

GSA has elevated price over value

Fiscal constraints are stressing Government and industry

Relators (plaintiff whistleblowers) are bolder

DCAA is more aggressive (if that is even possible)

Five Best Practices

Understand the terms of your contracts, and internalize them

Develop an effective compliance program that includes written policies, training, and monitoring

Reward compliance and discipline non-compliance

Keep good records

Demonstrate management commitment to compliance (tone at the top)

Five Rules For Healthy Living

Do not steal. Do not lie. Do not deceive.

Never do anything you wouldn’t want to see on the front page of the NYT.

Turn square corners.

Get it in writing.

Remember: You can’t be justa little pregnant

“Every man is a fool for at least five minutes every day; wisdom consists of not exceeding the limit.” -Elbert Hubbard

QUESTIONS?Jonathan S. Aronie

202.218.0039jaronie@sheppardmullin.com

“At my lemonade stand, I used to give the first glass away free and charge five dollars for the second glass. The refill contained the antidote..” -Emo Phillips