FALL 2020 TODAY’S GENER AL COUNSEL
Compliance
Companies May Unknowingly Be Subject to Government Contracting Regulations By Ambika J. Biggs
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s surprising as it may seem, many companies do not realize that they are considered government contractors and are subject to certain federal regulations. This often happens because government contracting is a relatively small part of their business or is handled by a separate division of the company. Or else, businesses that
do not directly contract with the federal government do not realize that they are subject to federal regulations that apply to subcontractors. When people hear “government contractor,” they tend to think of large defense and technology companies, which receive billions in contracting funds each year. However, there are a wide variety of
businesses that aren’t typically thought of as government contractors — sporting goods and game stores, barber shops and salons, even amusement parks. A government contractor is defined as a company that contracts with the federal government for the purchase, sale or use of personal property or non-personal services. In essence, it is a company that
