How to Develop a Litigation Hold Policy Builder for Government Contractors

 

Four-panel comic showing the development of a Litigation Hold Policy Builder for government contractors. Panel 1: Three professionals in suits discuss compliance, with one saying, 'We need to ensure compliance with our litigation hold policy.' Panel 2: A developer at a laptop says, 'I'll create a tool to help generate and manage litigation hold notices,' displaying a screen labeled 'Litigation Hold Policy Builder' with input fields. Panel 3: Close-up of the tool's interface with fields for 'Matter Name,' 'Description,' and 'Preservation Period' and a 'Create Notice' button. Panel 4: Two team members excitedly say, 'This tool will improve our document preservation processes!' and 'It will make litigation holds so much easier!' while smiling at each other."

How to Develop a Litigation Hold Policy Builder for Government Contractors

Government contractors face unique challenges when it comes to legal compliance, especially regarding litigation holds.

Developing a reliable Litigation Hold Policy Builder ensures data preservation, minimizes legal risks, and supports regulatory requirements.

In this post, we'll walk you through creating an effective Litigation Hold Policy Builder tailored for government contractors.

Table of Contents

Understanding Litigation Hold Requirements

A litigation hold is a process used to preserve all forms of relevant information when litigation is reasonably anticipated.

Failure to implement a proper litigation hold can result in sanctions, fines, and reputational damage.

Government contractors are often subject to stricter standards due to their handling of sensitive government data and compliance obligations such as the Federal Acquisition Regulation (FAR).

Essential Components of a Litigation Hold Policy Builder

When developing a Litigation Hold Policy Builder, ensure it includes these core elements:

  • Trigger Identification: The system should recognize events that necessitate a hold (e.g., receipt of a subpoena).

  • Notification Templates: Standardized communications to custodians and key stakeholders.

  • Custodian Management: Tracking who received the litigation hold and their acknowledgment.

  • Data Mapping: Identifying where potentially relevant information is stored across systems.

  • Audit Trails: Comprehensive logs showing steps taken to issue, monitor, and release holds.

Step-by-Step Development Process

1. Assess Legal and Regulatory Requirements

Start by consulting with legal counsel to understand specific requirements under federal, state, and agency-specific regulations.

For contractors, compliance with FAR, DFARS, and other frameworks like CMMC is critical.

2. Map Information Systems and Data Sources

Identify all repositories where relevant data could reside: email servers, cloud storage, local drives, and enterprise systems.

3. Build Notification and Tracking Mechanisms

Automate notifications to employees with easy-to-understand instructions and ensure systems log responses and acknowledgments.

This ensures defensibility if challenged during discovery.

4. Integrate with Existing Compliance Programs

Your Litigation Hold Policy Builder should seamlessly integrate with your overall records retention, cybersecurity, and compliance programs.

This alignment improves efficiency and strengthens legal defensibility.

5. Test and Refine Your System

Before full rollout, conduct mock drills and testing scenarios to identify gaps or improvements needed in your litigation hold process.

Best Practices for Government Contractors

Government contractors should also adopt industry-specific best practices when developing their litigation hold procedures:

  • Early Involvement of Legal Teams: Engage legal counsel from the start to shape your litigation hold strategies.

  • Training and Awareness: Regularly train staff on recognizing triggers for litigation holds and following preservation instructions.

  • Consistent Documentation: Keep detailed records of all litigation hold communications, acknowledgments, and releases.

  • Third-Party Vendor Coordination: Ensure subcontractors and cloud providers comply with your litigation hold requirements as well.

Conclusion

Developing a Litigation Hold Policy Builder tailored for government contractors is a proactive step toward regulatory compliance and risk mitigation.

By embedding automation, legal oversight, and defensible processes, contractors can better navigate legal challenges while maintaining operational integrity.

Stay proactive—build your Litigation Hold Policy Builder today!


For more on building compliance systems, check out the [U.S. General Services Administration's Records Management Resources](https://www.archives.gov/records-mgmt/rcs).


Important Keywords:

Litigation Hold Policy, Government Contractor Compliance, Data Preservation, Legal Risk Management, eDiscovery Readiness