The Government Contractor - Michael Schaengold

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    Michael Schaengold, a partner in the firm’s Washington office, was featured in an article in The Government Contractor on July 14, 2010, about the Department of Defense’s institutionalization of operational contract support for overseas operations.

     

    A recent subcommittee report found that contractors working in combat zones paid Afghan warlords and militia commanders to provide supply-chain security, according to The Government Contractor. The Department of Defense has said that they have little visibility into the inner-workings of how the subcontractors operate.

     

    An interim rule was implemented that, according to the article, requires contractors to report executive compensation and first-tier subcontractor awards on contracts expected to be worth $25,000 or more, except classified contracts and contracts with individuals.

     

    The rule “creates the significant risk of public scrutiny not only for contractors and subcontractors, but for the individual personnel,” Mr. Schaengold said. “Contractors should be alert to Government attempts to impose modifications on them (to add this clause) to existing contracts, which could lead to the potential for contractor requests or adjustment in contracting price.”

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