oboloo FAQ's

Does The Procurement Integrity Act Apply To Contractors?

Does The Procurement Integrity Act Apply To Contractors?

“Attention all contractors! Are you familiar with the Procurement Integrity Act? As a contractor, it’s essential to know your rights and responsibilities when working with the government. In this blog post, we’ll dive deep into whether or not the Procurement Integrity Act applies to you and how it could impact your business operations. Get ready to gain valuable insights and stay compliant!

What is the Procurement Integrity Act?

The Procurement Integrity Act of 2002 (Public Law 107-201) is a United States law that was intended to improve the integrity and accuracy of government contracting by creating penalties for individuals who violate procurement rules.

The law applies to contractors, subcontractors, and suppliers who receive federal money. The statute imposes criminal and civil penalties on those who knowingly and willfully make false statements or falsify documents in connection with government contracts. The consequences can be significant, including fines, imprisonment, or both.

Penalties for violating the act can be particularly severe for companies that have been convicted of similar offenses in the past. As a result, companies are careful to avoid any violations of the law.

What are its goals?

The procurement integrity act (PIA) applies to federal contractors and subcontractors. The PIA requires contractors and subcontractors to comply with federal procurement laws, regulations, and guidance. The PIA also prohibits contractors from discriminating in their hiring or contracting practices on the basis of race, color, religion, sex, national origin, age, or disability.

The PIA was enacted in 1990 to address the widespread corruption and bribery of government officials by private contractors. Since its enactment, the PIA has been used to penalize a number of corrupt contractors. For example, in 2007, two construction companies were fined $21 million for submitting fraudulent bids on government contracts.

The PIA is a complex statute with a number of provisions that require compliance by both federal contractors and subcontractors. For example, federal contractors must keep accurate records of their transactions with the government and make these records available for inspection by agency officials. Subcontractors must also maintain accurate records of their dealings with federal contracting agencies.

Do contractors fall under the purview of the PIA?

The Procurement Integrity Act (PIA) is a federal statute that regulates government contracts. The PIA covers a wide range of procurement practices, from financial integrity to the use of best practices in contracting. The act applies to all federal agencies, including contractors.

The PIA establishes financial and performance standards for government contractors. Financial standards require contractors to maintain accurate books and records of their finances, while performance standards require contractors to meet specified quality and time goals. In addition to financial and performance requirements, the PIA covers a variety of procurement practices, such as the use of blind bidding and competition limited to domestic suppliers.

Contractors are subject to many of the same procurement regulations as government agencies. For example, contractors must comply with financial and performance standards, use best practices in contracting (including compliance with export control laws), and disclose any conflict of interest in their bids or proposals.

Although the PIA applies to all federal agencies, it is most heavily enforced against government contractors who violate its provisions. Government agencies can suspend or revoke contractor certifications, impose fines ranging from $25,000 to $100 million, or even jail contractors for criminal violations. Contractors who are convicted of a felony related to their work as a contractor can also lose their certification and be barred from future government contracts.

How does the PIA apply to contractors?

The Procurement Integrity Act (PIA) is one of the foundational statutes for protecting government procurement. The PIA was created to prevent and deter bribery, kickbacks, and other corrupt practices in government contracting.

The PIA applies to both federal and state governments. It prohibits contractors from engaging in any corrupt or fraudulent conduct in connection with any contract or subcontract. This includes offering, giving, promising, rendering or providing anything of value to a government official in order to obtain or retain business.

Penalties for violating the PIA can include fines and imprisonment. Contractors should take the time to familiarize themselves with the PIA’s provisions so they can avoid potential sanctions.


In short, the procurement integrity act applies to contractors in much the same way as it does to government entities. This means that contractors are expected to abide by all applicable laws and regulations, and that authorities have the authority to take appropriate action if a contractor fails to do so. Contractors should also be aware of their rights under the procurement integrity act, which can help them protect themselves from unwarranted scrutiny or retribution from their government counterparts.

Want to find out more about procurement?

Access more blogs, articles and FAQ's relating to procurement

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers


Feel free to contact us here. Our support team will get back to you as soon as possible

© 2024 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971