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.

The Fed 100

Save the date for 28th annual Federal 100 Awards Gala.

Featured

  • computer network

    How Einstein changes the way government does business

    The Department of Commerce is revising its confidentiality agreement for statistical data survey respondents to reflect the fact that the Department of Homeland Security could see some of that data if it is captured by the Einstein system.

  • Defense Secretary Jim Mattis. Army photo by Monica King. Jan. 26, 2017.

    Mattis mulls consolidation in IT, cyber

    In a Feb. 17 memo, Defense Secretary Jim Mattis told senior leadership to establish teams to look for duplication across the armed services in business operations, including in IT and cybersecurity.

  • Image from Shutterstock.com

    DHS vague on rules for election aid, say states

    State election officials had more questions than answers after a Department of Homeland Security presentation on the designation of election systems as critical U.S. infrastructure.

  • Org Chart Stock Art - Shutterstock

    How the hiring freeze targets millennials

    The government desperately needs younger talent to replace an aging workforce, and experts say that a freeze on hiring doesn't help.

  • Shutterstock image: healthcare digital interface.

    VA moves ahead with homegrown scheduling IT

    The Department of Veterans Affairs will test an internally developed scheduling module at primary care sites nationwide to see if it's ready to service the entire agency.

  • Shutterstock images (honglouwawa & 0beron): Bitcoin image overlay replaced with a dollar sign on a hardware circuit.

    MGT Act poised for a comeback

    After missing in the last Congress, drafters of a bill to encourage cloud adoption are looking for a new plan.

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