Federal Acquisition Regulations (FAR)

Date: 2/29/08
Title: Federal Acquisition Regulations (FAR)

Dear Colleagues,

If your company receives a government contract award "expected to exceed" $5 million with a performance period of 120 days or more, you should be aware of the new language in the mandated solicitation and contract clauses of the Federal Acquisition Regulation (FAR).  The new requirements apply only to new contracts awarded on or after December 24, 2007.  Within 30 days of a contract award, the contractor must prepare a written code of business ethics and conduct and provide it to all employees engaged in the performance of the contract.  Contractors must also:

• "promote" compliance with its code of business ethics and conduct, and
• display Fraud Hotline Posters as required by the agency Office of the Inspector General (OIG).

The regulations require the contractor to establish, within 90 days of the contract award, an "ongoing business ethics and business conduct awareness program."  The amendments suggest that the contractor's internal control system shall: (1) facilitate timely discovery of improper conduct in connection with government contracts, and (2) ensure corrective measures are promptly instituted and carried out. 

Small businesses are subjected to all aspects of the amendments, except for the requirement to implement an employee awareness program and an internal control systems. 

For further information, please refer to the attached PDF of the Federal Register.

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC.  It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.