Under A Microscope: Government Contractors, Audits, and Various Investigations

The government is truly a unique customer. Through a complex combination of statutes, regulations, and contract clauses, a company that provides goods and services to the government is subject to various audits and investigations of a nature that simply does not exist in standard commercial contracting. The government, in many cases, has the right to determine whether the facts presented by a contractor during negotiations were accurate, current, and complete.  

In addition, if a contractor is paid on the basis on its costs of performance, the government may audit the costs claimed by the contractor to determine whether they are reasonable and correctly reflect the costs incurred. If the government determines that the contractor has not provided accurate information and that inaccuracies increased the contract price or resulted in overpayments, the government may reduce the contract price or initiate claims against the contractor to recover overpayments. When a contracting agency believes that the actions violate statutes, the agency can request an investigation by its Inspector General or refer the matter to the Department of Justice for possible actions under the False Claims Act.

In this course, attorneys Ray Monroe, Cameron Hamrick, and Ted Ebert address the audit and investigative authorities of the government, explain the government's remedies for violations, and provide advice on responding to government audits and investigations. The course draws on both their knowledge of government contracts law and their practical experience to outline how to survive and, even better, avoid government audits and investigations.

Learning Objectives:

1. Identify the source of the government's rights to audit and investigate government contractors and the scope of these rights
2. Discuss the typical subject matter of government audits and investigations and which organizations within the government perform the audits and investigations
3. Appreciate the potential liability for matters typically audited and investigated by the Government
4. Respond to document requests and interview requests in audits and investigations
5. Address the importance of mitigating the risks of being a federal government through integrated corporate governance, risk management, and compliance (GRC) "infrastructure"