Understanding Implications of Compliance to Government Contracts

Nishat Ruiter, VP and Associate General Counsel, CA Technologies

Government contracts are complex instruments that require rigour, discipline and foresight well beyond the signature and execution of the deal. These contracts have unique obligations and duties not generally intuitive, and are intertwined with administrative and regulatory conditions that tether the actions of a company to financial, operational and legal obligations. In-house counsel must take into consideration the long term implications and prepare its client to avoid unacceptable legal risk that results from inability to meet these obligations. This paper offers in-house counsel tools to assist in sifting through these issues and suggests a process that equips them to evaluate these overall risks. It necessitates a thorough and comprehensive understanding of the company’s operations and practices. To become familiar with common government obligations and recurring themes, tangible markers found in these contracts are reviewed. Implications of terms such as most favoured nation pricing will also be identified. Finally, by adopting the suggested methods presented, in-house counsel and their clients can avoid unacceptable legal consequences and equip them to understand government compliance standards.