Legal Opinion on Offshore Outsourcing
One of the most controversial issues facing the private geospatial community is the practice of sending work to offshore subcontractors. The MAPPS Board has spent a considerable amount of time debating this issue and considering what position MAPPS should take on legislation and public policies related to offshoring.
MAPPS, as a trade association, cannot and does not tell its members how to do business. The association, can, however, (1) advocate certain legislation and government policy; and (2) keep its members informed of current law and regulations to assist its members in determining their compliance with such laws and regulations.
It is in that later matter that the Board decided to engage a prominent Washington, DC law firm to analyze current Federal law and regulation. The firm of Crowell & Moring was asked, "If a U.S. firm wins a Federal contract and then, without the government's knowledge, sends the work to an offshore subcontractor, would that U.S. firm be in violation of any current law or regulation?"
The opinion of Crowell & Moring is that such a scenario indeed violates several laws, including the Brooks Act for A/E services, the False Claims Act, the Truth in Negotiation Act and the Service Contract Act.
While we can have a healthy debate over whether Congress should enact additional laws regarding offshoring of services, the MAPPS Board believes it is important that current law is properly enforced. We are distributing this letter to you, our members, so you know your responsibilities and stay fully in compliance with the law. As outlined in this letter, the penalties for violating the law are severe.
We hope you find this helpful. To view the full opinion,
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