In fiscal year 2022 alone, the Federal Government is estimated to have spent over $1 trillion in grant and assistance programs – a little less than double the Federal Government's estimated procurement budget for the same year. This spending reflects a trend in recent years towards making more Federal dollars available for more assistance programs. The American Rescue Plan Act, the Infrastructure Investment and Jobs Act, and even the CHIPS Act (to name a few), have created significant financial incentives for largely commercial entities to partner for the first time with the Federal Government. What marks a shift in policy are the primary partners the Federal Government is targeting for these funding opportunities: for-profit, commercial companies for providing broadband infrastructure or developing semiconductors domestically. These programs are geared towards incentivizing non-traditional grant recipients to take a bite at this ever-growing apple. From a business perspective, the trillions of dollars ripe for the taking seem too good an opportunity to pass up – but as we know from our experience in the procurement sector, doing business with the Federal Government is a different beast entirely from the commercial marketplace.
Because we understand the need for commercial companies to comprehend the risks and compliance obligations associated with taking federal grant dollars from the government before entering into these agreements, we put together the Sheppard Mullin Federal Grants Survival Guide: Answers to Key Questions For Commercial Organizations Receiving Federal Assistance Funding. We anticipate updating the Survival Guide from time to time to reflect new Q&As and best practices from our experience entering the Federal grant space. Our Sheppard Mullin team is here to answer any questions you might have about the Guide itself, or doing business with the Federal Government more broadly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.