Gail D. ZirkelbachJason M. CrawfordCharles Baek

On November 14, 2016, the Department of Defense issued a class deviation prohibiting DoD agencies from awarding FY 2017 funds to companies that require employ­ees or subcontractors to sign internal confiden­tiality agreements or statements that restrict them from lawfully reporting waste, fraud, or abuse. As described here, the deviation comes at a time of increased scrutiny—and potential enforcement actions—from government agencies regarding the use of internal confidentiality agreements. A FAR Final Rule that would incorporate the requirement in all contracts is expected in the near future.