Contractors are increasingly under the scrutiny of Government auditors, investigators and regulators searching for fraud, waste and abuse in Government contracting, as well as corporate misconduct by publicly traded corporations. Even apparently innocent mistakes can be perceived as a violation of law resulting in significant problems for contractors, which can range from damage and penalty claims to forfeiture on the civil side and from investigations to criminal prosecution on the criminal side. Recognizing the importance of these issues to government contractors, P&A’s experienced lawyers offer legal representation and counsel that ranges from avoidance (developing and implementing compliance programs and oversight) to the defense of our clients in litigation—both civil and criminal.

In this minefield of potential liability, our Government contract and compliance attorneys represent clients in connection with Government audits and investigations of suspected contract fraud, including potential violations of federal statutes such as the False Claims Act and the Truth in Negotiations Act. This often involves advising our clients on how to properly respond to subpoenas, search warrants and informal requests for information by inspector generals, auditors of the Defense Contract Audit Agency, and investigative officers of federal agencies. We also have the resources and expertise to represent our clients before grand juries. Our compliance group includes lawyers with substantial civil fraud experience, as well as a former criminal prosecutor and a former federal investigative agent.

Our attorneys have conducted numerous internal investigations to independently determine whether clients may be at risk and to advise their management teams accordingly. We also assist clients in developing or revising their internal corporate processes and procedures to avoid compliance problems and to convince the Government that our clients are responsible contractors that should not be suspended or debarred.

Sometimes Government auditors question whether certain costs are allocable, allowable and reasonable under federal cost principles as a matter of contract administration to determine if a potential false claim may be involved. Our attorneys have extensive experience with the complex and esoteric cost accounting rules that apply to Government contracts and advise their clients accordingly.

Besides investigating and advising clients on compliance with federal civil and criminal statutes, our attorneys have investigated potential violations of the Sarbanes-Oxley Act by publicly traded contractors and have provided advice to our clients’ management teams as to ways that their internal controls may be improved to avoid Sarbanes-Oxley compliance problems.

Our compliance capabilities include the representation of clients in civil and criminal actions brought under the qui tam provisions of the federal False Claims Act, as well as the comparable false claims statutes of individual states. Our experience includes audits and investigations arising from alleged defective pricing, labor and per diem mischarging, and product substitution, among others. In one recent False Claims Act case, our attorneys obtained summary judgment for two different clients against a qui tam plaintiff’s claims for millions of dollars for alleged false claims. In another False Claims Act case, our attorneys successfully mediated a multi-million dollar U.S. Department of Justice claim.that had been filed in federal district court.