When does a conflict of interest become a False Claims Act liability—and how can contractors protect themselves throughout the contracting lifecycle?
Habib Ilahi, False Claims Act Practice Chair, along with Partner Kendra Perkins Norwood and Associate Marlee Egierski, examine this critical compliance challenge in their latest Law360 article, “FCA Deal Shows Conflict Review Must Go Beyond Bid Stage.”
Their article analyzes the recent $7.75 million Sierra Nevada Company settlement with the DOJ and what it reveals about the evolving enforcement landscape for organizational and individual conflicts of interest. Key insights include the distinction between organizational conflicts of interest (OCIs) and personal ethics violations, the importance of treating conflict review as a continuous compliance function rather than a one-time proposal exercise, and how contractors must navigate overlapping regulatory regimes, from FAR Subpart 9.5 to postgovernment employment restrictions, to avoid False Claims Act exposure and administrative enforcement actions.
