DoD Prohibits FY17 Funds for Contractors with Restrictive Confidentiality Agreements

On November 14, 2016, DoD issued a class deviation prohibiting its agencies from awarding FY17 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, there has been increased scrutiny by government agencies in recent years of the use of internal confidentiality agreements, and a FAR final rule on the subject is expected in the near future.