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ARTICLE · 21 JULY 2014

State False Claims Act Analysis: Does Your State Contract Prohibit Offshore Outsourcing?

Offshoring, or "the import from abroad of goods or services that were previously produced domestically," is a major part of today's business landscape.

United StatesGovernment, Public Sector

So your company has been diligently trying to comply with state and federal government contracting regulations. You pay your service employees in accordance with the Service Contract Act, you file your EEO-1s and VETS 100s, you monitor state campaign contributions, and you follow all of the additional requirements in your compliance plan. You think your company is "golden." Right? Maybe. Are you "offshoring" services under your contract, or the data related to your state and/or Medicaid government contracts? This easily overlooked issue has been percolating to the top of the list for government agencies, state attorneys general, and perhaps, qui tam plaintiffs' attorneys.

Offshoring, or "the import from abroad of goods or services that were previously produced domestically,"1 is a major part of today's business landscape, and government contracting at both federal and state levels is no exception. The issue of offshore outsourcing of services first drew attention

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