Be Sure To Exercise Care In Vetting Your Supply Chain
July 19, 2018
Now, more than ever before, contractors need to employ good contracting and subcontracting practices to secure their supply chains. Government contractors are required to deliver what they promise in their proposals and, ultimately, under their contracts. As a prime contractor, or higher tier subcontractor, you are responsible for the integrity and compliance of your supply chain. Recent developments may make that supply chain a potential trap for the unwary unless you are taking adequate steps to vet your suppliers:
- Supply Chain Risk clauses: Department of Defense (DoD) is including several clauses in acquisitions and contracts that warrant your increased attention. DFARS 252.239-7018 Supply Chain Risk clause is being included in DoD information technology procurements. This clause allows DoD to decide not to award a contract, or to cancel one that has been awarded, if DoD considers the prime contractor or its supply chain to pose “the risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of a national security system… so as to surveil, deny, disrupt, or otherwise degrade the function, use, or operation of such system.” DFARS 252.246-7007 Contractor Counterfeit Electronic Part Detection and Avoidance System and DFARS 252.246-7008 Sources of Electronic Parts require contractors to protect against counterfeit electronic parts in all tiers of their supply chain. Contractors and subcontractors must employ trusted sources, maintain traceability, and report on actual or suspect counterfeit parts. FAR 52.204-21 Basic Safeguarding of Covered Contractor Information Systems, as well as DFARS 252.204-7012 , Safeguarding Covered Defense Information and Cyber Incident Reporting , require contractors and their subcontractors to comply with specific cyber security controls and cyber incident reporting requirements.
- DHS Binding Operational Directive (BOD) Ban on Products : The Department of Homeland Security (DHS) has authority to ban the use of certain products that pose risks to the national security. In Fall 2017, DHS issued its first BOD 17-01, requiring government agencies to take steps to scan, identify and remove/replace Kaspersky products in their systems.
- Other Legal Bans on Products : In December 2017, Congress passed the National Defense Authorization Act for FY 2018, prohibiting the use of any software platform developed in whole, or in part, by Kaspersky Lab. Effective July 16, 2018, FAR 52.204-23 Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities will be included in procurements and resultant contracts; the clause also may be added to existing contracts through a bilateral amendment.
- Tariffs and Other Actions: President Trump’s National Security Strategy issued in December 2017 identified national security risks posed by certain economic activities of foreign countries. Tariffs and other actions are being taken to address these concerns.
- Private Lawsuits and Government Investigations : Counterfeit parts continue to infiltrate the market. Counterfeit parts may involve the theft of a company’s intellectual property, and result in the loss of sales and good will for the company’s brand. In addition, counterfeit parts that do not work as intended pose significant safety and security risks to the United States, other countries, and our citizens. Private companies as well as the Government are seeking to address this problem. For example, in 2018, CISCO Systems filed a lawsuit against two Florida companies for importing and selling counterfeit electronic parts. One of these companies is a government contractor and is now under investigation by the Defense Logistics Agency.
Key Takeaways –
- Failing to adequately protect the integrity of your supply chain has untold costs. Take steps to protect your supply chain by vetting your suppliers and their products throughout the procurement lifecycle.
- Track notices of product and supplier risks and bans to reduce your supply chain risks.
- Negotiate and include appropriate clauses in your contracts to assure supply chain integrity and to identify appropriate processes and remedies for reporting, correcting and obtaining recourse in the event of a problem.
- Identify your incident response team members and develop a plan so you can take the necessary steps to prepare for and address any detected quality or performance problem, actual or suspected counterfeit part or cyber incident.
A safe and secure supply chain is in everyone’s interest. If you are a government contractor or subcontractor and have questions about your supply chain responsibilities, or the impact of these supply chain risk rules and requirements, contact Susan Warshaw Ebner , or your FortneyScott contact, for assistance.
November 20, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities. We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies.
On Tuesday, December 2, at 2pm EST , join attorneys from Novus Law Firm and FortneyScott and an I/O Psychologist from DCI as we discuss the scope of data being requested by the federal government and how to ensure that your institution is prepared. To register for this complimentary webinar, please CLICK HERE . Higher Education continues to be targeted by the Administration’s enforcement efforts to ensure compliance with federal anti-discrimination laws. Employment and admissions practices are subject to increased scrutiny by multiple federal agencies. For instance, both the Department of Justice (DOJ) and Health & Human Services (HHS) have issued Civil Investigation Demand (CID) letters requiring the submission of voluminous data and documents. These investigations pose significant risks, including potential civil and criminal lability, and the loss of federal contracts and grants. Additionally, the Department of Education (ED) has proposed major changes to the Integrated Postsecondary Education Data System (IPEDS) which, if implemented, would require institutions to report up to six years of detailed admissions data including applicant demographics and admissions criteria for undergraduate and graduate programs. Given this rapidly changing legal compliance landscape, higher education institutions should be prepared for government investigations that scrutinize wide-ranging practices, including those related to employment, admissions, and compensation. We will cover: Responding to federal agency investigations, which can include CIDs & scope of data production How to prepare for a potential investigation How the proposed IPED revisions may impact reporting burdens How federal agencies may use and share institute data Prospective data analytics that should be conducted
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities. We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc . This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance.
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18 th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc. This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
November 20, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities. We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies.
On Tuesday, December 2, at 2pm EST , join attorneys from Novus Law Firm and FortneyScott and an I/O Psychologist from DCI as we discuss the scope of data being requested by the federal government and how to ensure that your institution is prepared. To register for this complimentary webinar, please CLICK HERE . Higher Education continues to be targeted by the Administration’s enforcement efforts to ensure compliance with federal anti-discrimination laws. Employment and admissions practices are subject to increased scrutiny by multiple federal agencies. For instance, both the Department of Justice (DOJ) and Health & Human Services (HHS) have issued Civil Investigation Demand (CID) letters requiring the submission of voluminous data and documents. These investigations pose significant risks, including potential civil and criminal lability, and the loss of federal contracts and grants. Additionally, the Department of Education (ED) has proposed major changes to the Integrated Postsecondary Education Data System (IPEDS) which, if implemented, would require institutions to report up to six years of detailed admissions data including applicant demographics and admissions criteria for undergraduate and graduate programs. Given this rapidly changing legal compliance landscape, higher education institutions should be prepared for government investigations that scrutinize wide-ranging practices, including those related to employment, admissions, and compensation. We will cover: Responding to federal agency investigations, which can include CIDs & scope of data production How to prepare for a potential investigation How the proposed IPED revisions may impact reporting burdens How federal agencies may use and share institute data Prospective data analytics that should be conducted
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities. We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc . This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance.
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18 th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc. This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
During the first months of the Trump Administration employers have faced unprecedented challenges in understanding and keeping up with the rapidly changing legal environment. To assist our clients in successfully navigating these challenges, FortneyScott is initiating a four-month, complimentary training program addressing Workplace Legal Compliance. These new, original trainings will occur during September through December, 2025 and will include 4 monthly webinars, at least 4 podcasts of DC Insider—Employer Update and timely alerts as developments unfold. The trainings are designed to provide substantive updates and to assist employers in addressing the latest developments as part of their organization’s comprehensive workplace legal compliance program. How to Participate : Register now for the FortneyScott Workplace Legal Compliance webinars, podcast notifications and alerts: Register for all 4 webinars (September 18, October 23, November 20 and December 18). Register for notifications of new podcast episodes of DC Insider—Employer Update. Register for Workplace Legal Compliance alerts and updates. If you have an immediate questions or feedback, please contact any of the FortneyScott attorneys or email info@fortneyscott.com . Additional Background : Workplace legal compliance is essential for mitigating risk, protecting employees, and fostering a positive and reputable company culture. Adhering to federal, state, and local laws concerning labor, safety, and discrimination prevents costly penalties, lawsuits, and operational disruptions. Beyond simply avoiding legal and financial consequences, compliance builds trust with employees and other stakeholders by demonstrating a commitment to ethical conduct. This creates a fair and safe work environment that boosts employee morale, increases retention, and enhances overall productivity. By proactively managing legal responsibilities, an organization strengthens its reputation and brand image, which in turn can attract top talent and create a competitive advantage in the marketplace. FortneyScott’s Workplace Legal Compliance supports employers in meeting these objectives. Ultimately, legal compliance is not only a regulatory obligation – it is a strategic investment in the long-term success and integrity of your organization.
We are pleased to announce that FortneyScott attorney David Fortney has been recognized as one of The Best Lawyers in America for 2026, in recognition of outstanding achievement and contributions to the field of Labor and Employment law. This marks a continuation of his recognition in The Best Lawyers in America since 2008, reflecting a sustained commitment to excellence, innovation, and leadership. It underscores the impact of his work within the professional community. We extend our congratulations on this well-deserved recognition.
The U.S. Department of Justice (DOJ), Civil Division is sending Civil Investigative Demands (CIDs) to federal contractors seeking information on their DEI practices, under its authority to investigate False Claims Act (FCA) claims. Flowing from President Trump’s Executive Order 14173, which seeks to limit DEI efforts, the DOJ recently launched the Civil Rights Fraud Initiative, which utilizes the FCA to investigate and pursue claims against recipients of federal funds (including federal contractors) that their DEI practices violate federal civil rights laws. The focus of these investigations will likely be: Discriminatory preferences/goals: DEI programs that assign benefits or burdens based on race, ethnicity, or national origin. Use of proxies to mask discrimination: Practices using criteria like "cultural competence" or "lived experience" as proxies for protected characteristics in hiring or promotion decisions. Segregation in the workplace: Limiting membership in affinity groups or separating employees by protected characteristics during training. Discriminatory training programs: DEI training that promotes stereotypes, excludes individuals based on protected characteristics, or creates a hostile environment. Failure to protect against antisemitism: Institutions accepting federal funds that do not adequately address antisemitism or other civil rights violations. Organizations found to be in violation of the FCA can face significant penalties, including treble damages (three times the amount of damages incurred by the government), civil penalties for each false claim, and reputational harm. As a result, all federal contractors and grant recipients should be on high alert for any communication from DOJ and should immediately notify internal counsel if any such communication is received. Please contact your FortneyScott attorney or email us at info@fortneyscott.com for additional information on how to be prepared and to respond to these DOJ investigations and other best practices recommendations.
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys for an in-depth webinar covering what these changes may mean for your organization. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure.
