Government Contractors: Avoiding False Claims

A contract with the government can be a lucrative and secure source of funding for your company for, potentially, dozens of years. Engaging in business with the government, however, is no straightforward task and may deal loops and turns that the private sector is rarely burdened by. Boiled down to its simplest terms, a government contractor must provide accurate claims for payment for the goods and/or services it provides to the government or government agency. Although this sounds simple enough, it only takes one or two managers of your business who believe they can flirt the edge of honest billing to end up in a world of issues. In an attempt to stem off these fraudulent claims against it, the Federal government passed the original False Claims Act in 1863 in attempt to stop suppliers of goods to the Union army from defrauding the army out of well needed resources. The Act was used sparingly for quite some time following its enactment, but regained public attention in the…

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