Strategies for Protecting Your Business in Government Contracting

Government contracting is very promising for companies big and small, but it also comes with its own set of unique challenges. Compliance, billing, cybersecurity – these are all very highly regulated subjects that need to be addressed carefully so that they can stay out of trouble. New cases of government contracting litigation point to some lessons and trends that companies can take into consideration to protect themselves. We will review a few of these examples and offer advice for contractors with government agencies in this article. 

Recent Government Contracting Lawsuits: Key Highlights and Takeaways

Loper Bright Enterprises v. Raimondo (2024)

One of the most influential cases in 2024 for government contractors, Loper Bright Enterprises v Raimondo, brought back the Chevron deference doctrine that had previously granted agencies great leeway in interpreting statutes. In this case, the Supreme Court shows that agency interpretations won’t automatically be given sway, and contractors will have more time to object to regulations affecting their business. You can read the full court opinion here.

Contractors engaged by the government ought to be willing to challenge agency meanings that feel too vague or expansive. Businesses can be well advised about problematic interpretations that don’t always conform to the statutory intention with the right legal advice. Whitcomb Selinsky’s government contracting services provide support for contractors dealing with agency decisions and contract disputes, including breach of government contracts and contract termination disputes.

False Claims Act Settlements in FY 2023

Fiscal year 2023 has seen the most successful settlements and judgments under the False Claims Act (FCA) – one of the government’s primary tools for combating fraud – in history. Most of these were overpayments, misbilled contracts, and compliance violations that reflected DOJ’s ongoing emphasis on financial transparency when it comes to government contracts. You can read the DOJ’s official statement here.

Staying in strict alignment with billing and regulatory requirements is more important than ever for government contracting companies. Correct cost attribution and billing can save businesses from hefty fines. It’s a precaution to preventively comply (particularly with regard to record-keeping and billing accuracy).

Protecting Your Business: Key Strategies

Implement Robust Compliance Programs

A comprehensive compliance program is one of the best ways to guard against legal risks in government contracting. This kind of program should encompass all relevant regulations for your contracts, including billing, cybersecurity, and reporting requirements. Our team has extensive experience helping businesses establish effective compliance programs to protect them from costly errors and potential liability.

Maintain Proper Record-Keeping and Billing Practices

Many of the False Claims Act lawsuits are based on incorrect records and billing. If you get cost allocation wrong or you invoicing it incorrectly, you may be accused of overcharging and will be fined harshly. Simple documentation and frequent internal audits make sure you adhere to contract and not make costly mistakes.

If you use technology to automate recordkeeping and billing, you can reduce the likelihood of errors and increase productivity. Being well-documented, open and unified also gives you a better case if audits or investigations occur. See Whitcomb Selinsky’s contract dispute services for more tips on how to safeguard your business from conflict.

Ensure Cybersecurity Compliance

Federal cybersecurity regulations are growing and going unchecked can be costly and illegal. Many government contractors were sued or penalized over cyber-attacks in the last few years. Government data needs to be protected by contractors following processes such as Cybersecurity Maturity Model Certification (CMMC).

The compliance with federal cybersecurity standards is a must, not only for data security, but to stay eligible for government contracts. Our team offers information on how to meet and comply with federal cybersecurity standards so your business stays secure and compliant.

Contract Disputes and Protests: Navigating Disputes and Claims

Understanding the Post-Chevron Landscape

The potential end of Chevron deference may reshape how contract disputes and contract termination disputes are handled, providing contractors more options to challenge unfavorable agency decisions. Having experienced legal representation can make a significant difference when addressing disputes over contract terms or agency interpretations.

For businesses facing disputes over agency rulings or contract terms, the shift away from Chevron deference offers new opportunities to contest interpretations that impose unreasonable demands. 

Bid Protest Strategies

Bid protests are a major component of government contracting, providing companies with a way to contest awards they believe were unfairly decided. Recent bid protest cases emphasize the importance of understanding bid requirements and being prepared for potential challenges. Whitcomb Selinsky can assist contractors in developing bid protest strategies, helping to improve their chances of securing government contracts.

Conclusion

Government contracting is a good deal, but it’s a hard sell. The recent incidents make it critical to always have robust compliance programs, intelligent billing and strong cybersecurity. Learn from these mistakes and take preventive steps so companies do not face litigation and penalties that are expensive. Whitcomb Selinsky’s law firm offers specialized assistance for government contract disputes and government contract claims, as well as other contract claims. Contact us for government contracting services to see how we can help with your compliance and law enforcement.