The sphere of government
consulting is full of unique terms. One of those terms that you’ll encounter
more than others is called DCAACompliance. However, the agency never certifies contractors as “compliant.”
Complying with the DCAA means following the guidance and recommendations of the
agency so that a contractor remains compliant with the federal laws and staying
ready for audits at all times.
The consequences
You’ll find a lot of
information on the internet about complying with the DCAA. However, as a government
contractor, you should also be aware of the consequences of non-compliance.
Those who make this mistake usually get exposed by audits, whistleblowers,
investigation, Freedom of Information Act requests, and others. Illegal or
unethical conduct can lead to debarment, suspension, contract voiding or
termination, getting listed in the Excluded Parties List System, and civil and
criminal penalties.
Criminal & civil penalties
Civil penalties from
non-compliance get determined with every violation and invoice. The government
has the right, as well as the ability to recoup a lot of money. As a result,
the contractor is always at risk of paying the government almost three times
the original damage. Criminal penalties are significantly more serious. Otherwise,
the contractor may end up in prison for several years.
Debarment
Debarment is yet another
severe punishment the federal government can enforce upon a contractor. If
someone gets debarred, they don’t have to worry about DCAA Audit. Instead, they should look for ways to attract more
contracts because debarred contractors may never get any other contract. The
government won’t consider solicitation proposals and bids unless the head of
the agency finds a reason compelling enough to do so in writing.
Final words
In the end, it’s worth
mentioning that a contractor’s misconduct can also lead to contract voiding or
termination. The FAR provides agencies with the ability to void and rescind
contracts. It does so only if it runs into instances of bribery, receipt or
disclosure of contractor bid or proposal info, or interest-related conflicts.
