President Barack Obama has promised sweeping reforms to the federal government's procurement process for later this year, but several recent reforms have already changed the regulatory landscape for businesses contracting with the federal government.

Through a combination of new legislation, administrative rulemakings related to the American Recovery and Reinvestment Act of 2009, and several new Executive Orders, the federal government continues to impose new compliance burdens onto contractors.

Furthermore, the Department of Labor's proposed budget for fiscal year 2010 calls for a significant increase in funding and staffing for the Office of Federal Contract Compliance Programs, the office charged with enforcing federal laws and executive orders requiring contractors to take affirmative action in employment.

Government contracting has always carried compliance costs, and these reforms will not be the last major changes in government contracting policy this year. Still, adherence to these new policies does not require existing government contractors to abandon the practices that have made them successful federal contractors in the past.

These changes, as well as those anticipated for the second half of the year, will require businesses to turn anew to their ongoing compliance efforts to ensure that all employees and agents are equal partners in continued contracting success. Businesses new to government contracting should devote special attention to internal training, particularly for those employees dealing directly with government officials or managing employee relations.

Click here to read details in the full "Economic Recovery Alert" from Godfrey & Kahn.

-- Briggs, Finerty and Kurlinski are attorneys at Godfrey & Kahn.