Enforcement highlights and trends from 2016-17
With a reinvigorated focus on TAA compliance, an increase in False Claims Act (FCA) cases, and President Trump’s “Buy American” executive order, contractors should expect increased scrutiny of their TAA compliance efforts.
- In April 2017, the General Services Administration (GSA) Office of the Inspector General issued a memorandum summarizing the results of its audit of TAA compliance across Federal Acquisition Service (FAS) purchasing programs. Here were some of the observations:
- FAS can further develop controls to detect TAA noncompliance, including providing guidance on how to use its online data dashboard
- Instances where TAA noncompliance was not always remediated
- Schedule solicitations including an outdated TAA clause
Failure to comply with the TAA can result in a False Claims Act suit from the U.S. government, which can impose major damages on companies that have allegedly defrauded government agencies. In FY 2017 alone, there were a total of 799 FCA cases, resulting in $3.7 billion in federal recoveries.