A paper on “Contractor Responsibility: Toward An Integrated Approach To Legal Risk Management”

In recent essays, I have discussed how counterfeit parts avoidance and detection has emerged as an area of business and legal risk that aerospace and defense (A&D) contractors should incorporate into compliance programs. The following article describes the current landscape of heightened US Government demands for contractor responsibility and provides a backdrop for issues I have described about the imbalanced approach to counterfeit prevention described within the proposed DFARS rule on “Detection and Avoidance of Counterfeit Electronic Parts”….

Contractor Responsibility: Toward An Integrated Approach To Legal Risk Management” By Steven A. Shaw, Mike Wagner, and Robert Nichols (March 2013)

The principal author is Steven Shaw, former USAD Deputy General Counsel (Contractor Responsibility), and now with Covington & Burling.

In his role as USAD Deputy General Counsel (Contractor Responsibility), Mr Shaw and his staff pursued due diligence with US defense contractors concerning counterfeit part incidents associated with the US Senate Armed Services Committee’ investigation in 2011.

“In this era of heightened Government demands for contractor responsibility, Government contractors face myriad risks. The authors of this briefing paper have been involved, in one capacity or another, in some of the largest Government enforcement actions facing contractors. They have prosecuted and defended criminal and civil actions against contractors, negotiated the resolution of civil actions involving substantial fines and penalties, and handled suspension and debarment actions with multi-billion dollar contracting implications. They have also seen shareholder suits against board members and executives and have witnessed c-suite executives lose their jobs (and a few companies go out of business) due to their failures to comprehend and manage the risks relating to contractor responsibility. This briefing paper is designed as a guide for Government contractors—including their boards of directors, c-suite executives, and legal counsel who bear fiduciary duties for managing corporate risks— for undertaking risk management strategies to avoid such problems.”

Increased Enforcement Actions Against Contractors
■ False Claims Act
■ Foreign Corrupt Practices Act
■ UK Bribery Act & Other International Anticorruption Laws
Administrative Suspensions & Debarments
■ Suspension & Debarment Policy
■ Bases For Suspension & Debarment
■ Trends In Suspension & Debarment
Responsibilities & Liabilities Of Corporate Boards & Executives
■ Civil Liability Of Corporate Directors
■ Statutory & Regulatory Developments
Managing Contractor Accountability Risks In Today’s Business Environment
■ Creating Robust Compliance & Ethics Programs
■ Conducting Internal Investigations
■ Negotiating Settlements & Navigating Suspension & Debarment Importance Of Coordinating Risk Management Efforts

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