Category Archives: Government Subcontracting

Subcontracting Plan – A Guide for Prime Contractors

Government agencies are required to award a certain percentage of their contracting funds to small businesses. Each year, these requirements receive more examination and reinforcement from the SBA, elected officials, and the public at large. In the current economic climate, with job creation a high priority, small business set-asides are under more scrutiny than ever. Read more…

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Subcontractor Fraud and the False Claims Act

On June 9th, 2008 the Supreme Court unanimously ruled to increase the burden of proof on the government’s side when prosecuting subcontractor fraud under the False Claims Act.

The False Claims Act is known as a “whistleblower” act; it allows people not affiliated with the government to make a claim of fraud against a federal contractor, on behalf of the government. This gives people with inside information a chance to expose federal contract fraud from within – and often receive a portion of the damages for doing so. Read more…

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Subcontracting Opportunities with Colleges and Universities

Higher educational institutions such as colleges and universities are often a good source of contract opportunities, especially in industries such as construction and maintenance. However, many government subcontractors overlook the fact that university departments are often themselves pursuing government contracts. Increased competition in the public sector can make subcontracting opportunities scarce. Having a solid working relationship with relevant departments in your local higher learning institutions can be a hidden wellspring of subcontracting opportunities. Read more…

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Privity in Subcontracting Revisited

Privity of contract is something that affects every government subcontractor, even if it never really comes up. Knowing your rights under contract privity will be crucial if a subcontract dispute ever arises.

Simply put, privity is a legal term having to do with the contractual ties between parties; if privity of contract exists, it means that the contractual ties are close enough that one party can bring a claim against the other party should something go wrong. For a government subcontractor, there is rarely a contract with the government. Instead, the subcontractor’s entire contractual relationship is with the prime, who in turn directly contracts with the government agency. So privity of contract exists between the agency and the prime, and between the prime and the subcontractor, but not between the agency and subcontractor. This complex relationship has its advantages and disadvantages. Read more…

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Things to Remember when Finalizing a Subcontracting Agreement

Participating in a subcontracting job can be a positive work experience, building up your resume as well as new industry contacts. It can also be a nightmarish mess of roadblocks, misunderstandings, and disputes. A big part of what can make or break your subcontracting experience is put in place before the work even begins: in the subcontracting agreement. Read more…

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