Richard Arnholt Warns Government Contractors About Potential Consequences for Failure to Comply with Disclosure Obligations

July 12, 2022
Reuters

In an article for Reuters, Bass, Berry & Sims attorney Richard Arnholt warned of the potential consequences if government contractors fail to comply with their disclosure obligations. Richard outlined the types of proceedings government contractors with federal contracts and grants with a total value greater than $10 million must report on the Federal Awardee Performance Integrity and Information System (FAPISS) in accordance with FAR 52.209-7, which include:

  1. Criminal proceeding resulting in a conviction or other acknowledgment of fault.
  2. Civil proceeding resulting in a finding of fault with a monetary fine, penalty, reimbursement, restitution, and/or damages greater than $5,000, or other acknowledgment of fault.
  3. Administrative proceeding resulting in a finding of fault with either a monetary fine or penalty greater than $5,000 or reimbursement, restitution, or damages greater than $100,000, or other acknowledgment of fault.

Citing a recent, although unsuccessful, Government Accountability Office (GAO) bid protest, Richard demonstrated how “failure to make those disclosures can put awards at risk, among other serious consequences.”

The full article, “Failure to Disclose Can Cost You a Government Contract,” was published by Reuters on July 7 and is available online or in the PDF provided by the outlet.