Red Flags in Government Contracts
The government-contract red flags compliance teams look for.
The list
- Vendor owned 50%+ by a designated official or state entity
- Vendor jurisdiction in a sanctioned region
- State-linked payment rails
- Fresh vendor with a large first contract payment
- Subcontractors with sanctioned-adjacent owners
- Payments routed through sanctioned intermediaries
Why procurement gets flagged
Government exposure runs through supply chains and state-linked vendors. The Russia program's reach over state entities makes the ownership surface central.
The control
Screen the vendor, its owners, and its jurisdiction before contracting and before each payment; flag the patterns above; fail closed; log every decision.