By

Kyle Fiet

15 December 2015

New DFARS Clauses Raise Spectre of FCA Liability For Use of Overly Broad Confidentiality Agreements

On October 29, 2015, the Department of Defense (DOD) added two new clauses to the Defense Federal Acquisition Regulation Supplement (DFARS), which raise the potential for liability under the False Claims Act.  The new clauses, DFARS 252.203-7996 and 252.203-7997, were added to comply with the Consolidated and Further Continuing Appropriations Act, 2015, Pub. L. 113-235, div. E, tit. VII, § 743 (2014), and subsequent appropriations acts, which prohibit the use of appropriated funds for federal government contracts with businesses that restrict employee whistleblowing to authorities.

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