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Rumor Has It

Forget burden of proof. A new proposal says allegations alone should prevent businesses from receiving federal contracts.

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This story appears in the November 1999 issue of Entrepreneur. Subscribe »

Federal procurement officials may soon be able to prevent companies from receiving federal contracts simply because of whispers that a company has broken labor, occupational-safety or other federal laws. The three big federal procurement agencies (the Department of Defense, the General Services Administration and NASA)--who together control the Federal Acquisition Regulation (FAR)--proposed that change in July.

Currently, FAR says a federal procurement officer can keep a company from receiving a contract only if the company has an unsatisfactory record of compliance with laws and regulations.

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