Watch Your Step: Avoiding False Claims Act Violations from Limitations in Subcontracting and Performance of Work Requirements

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Members of the government contracting community are familiar with the contracting opportunities offered specifically to small and disadvantaged businesses. The availability of small business contracts and set-aside contracting opportunities through the U.S. Small Business Administration’s 8(a), Mentor-Protégé, and various set-aside programs (such as those available for service-disabled veteran-owned small businesses or women-owned small businesses), offer important opportunities for small businesses to grow without competing against mega companies with endless resources. However, certain requirements for performing contracts under these programs can cause confusion and even liability under the False Claims Act for contractors who don’t watch their steps throughout contract performance.