Key Subcontracting Issues Including Flow-Down and Paid-if-Paid Provisions

Lorman Education Services


Government Contracts + Public Procurement


The saying goes that two heads are better than one, and this is especially the case when pursuing government contract opportunities. It is a prime contract that has a contractor performing without any partners. Even large defense contractors with an extensive library of forms, however, can fall victim to certain traps that can lurk in the subcontract. Failure to comply with legal requirements, provide true and correct certifications, or negotiate adequate protection of one’s interests can not only impact company bottom lines, but also subject one to liability under the civil False Claims Act, potential civil and criminal liability under federal fraud statutes, and potential administrative sanctions, such as suspension or debarment. These reference materials will cover some of the more important issues in a subcontract and provide valuable checklists and references for small business concerns, protecting intellectual property rights, and preserving ones status as a commercial item provider.

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