Numerous recent multimillion-dollar settlements underscore the legal threats facing companies that sell commercial goods and services to the federal government. Not only can the government bring suit, but even competitors are now alleging procurement fraud based on violations of contracting requirements unique to the government. Fortunately, companies have ways to mitigate these risks.
The federal government is the largest consumer in the world. To acquire commercial goods and services to meet the government’s needs, the General Services Administration, through its Multiple Award Schedule program, establishes long-term government-wide contracts that contain pre-negotiated prices and terms. Agencies can directly acquire supplies and services using this program, without having to conduct a full-blown acquisition. In fiscal year 2005 alone, the government spent more than $33 billion through these contracts.
