Contractors Face Tougher Ethical Standards

Adam Bartolanzo and John Chierichella of Sheppard, Mullin, Richter & Hampton argue that the expectation of adherence to the law in government contracting is not a reciprocal two-way street. They state that contractors face heavy punishment if they err in accounting for what they charge the government, but government agencies may be careless or even intentionally misapply funds, with relative impunity. They point out that the government itself writes the law and defines the terms it uses, giving it an inherent advantage. As a possible solution to such an inequity, they suggest “adjusting the standard applied to contractors by requiring willful misconduct as a condition of the treble damages that hang like the Sword of Damocles.”