Subcontracting in the federal marketplace has many considerations for both primes and subs, one of which is prime contractor responsibility for the conduct of subcontractors. This obligation appears in many aspects of the prime/sub relationship, including liability for passing false claims from the subcontractor through to the government. One way to mitigate or avoid the severe penalties of the False Claims Act in this type of circumstance is for primes to have a due diligence plan for verifying that the information submitted by the subcontractor is correct.
Our government contracts posts are published by Attorney Kristi Morgan Aronica. She serves as counsel to prime contractors and subcontractors in the government contracts market throughout Texas and nationally.