Breaking down the rule

The government amended the Federal Acquisition Regulation in November to require contractors to share credible criminal allegations related to contracts with the agency involved and its inspector general. Contractors must also report overpayments. The rule replaces voluntary disclosure measures that had been in place.

Here’s a breakdown of the rule requirements. Contractors must:


  • Establish and maintain specific internal controls to detect and prevent improper conduct connected to a government contract.

  • Inform the agency’s IG and the contracting officer whenever the contractor has credible evidence of a crime involving fraud, conflict of interest or bribery.

  • Create an internal control system within 90 days after a contract’s award, unless the contracting officer allows more time. The regulation lets contractors work out the details of the system to “the highest ethical standards they consider to be appropriate.”


The rule also allows the government to suspend or debar a company if an executive or manager doesn’t make the required disclosures. The suspension and debarment could come as long as three years after the final payment on a contract.

The rules become effective Dec. 12.

Source: The Federal Register

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Rising Stars

Meet 21 early-career leaders who are doing great things in federal IT.

Featured

  • SEC Chairman Jay Clayton

    SEC owns up to 2016 breach

    A key database of financial information was breached in 2016, possibly in support of insider trading, said the Securities and Exchange Commission.

  • Image from Shutterstock.com

    DOD looks to get aggressive about cloud adoption

    Defense leaders and Congress are looking to encourage more aggressive cloud policies and prod reluctant agencies to embrace experimentation and risk-taking.

  • Shutterstock / Pictofigo

    The next big thing in IT procurement

    Steve Kelman talks to the agencies that have embraced tech demos in their acquisition efforts -- and urges others in government to give it a try.

  • broken lock

    DHS bans Kaspersky from federal systems

    The Department of Homeland Security banned the Russian cybersecurity company Kaspersky Lab’s products from federal agencies in a new binding operational directive.

  • man planning layoffs

    USDA looks to cut CIOs as part of reorg

    The Department of Agriculture is looking to cut down on the number of agency CIOs in the name of efficiency and better communication across mission areas.

  • What's next for agency cyber efforts?

    Ninety days after the Trump administration's executive order, FCW sat down with agency cyber leaders to discuss what’s changing.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group