Update to the Federal Acquisition Regulations

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to amplify the requirements for a contractor code of business ethics and conduct, an internal control system, and disclosure to the Government of certain violations of criminal law, violations of the civil False Claims Act, or significant overpayments.

On November 12, 2008 the Department of Defense published amendments to the Federal Acquisition Regulation: Federal Register Volume 73, No.219 page 67064 -67093. Key is the amendment to 52.203-13 that enlarges the requirements for a contractor’s code of business ethics and conduct.

Under 52.203-13(c)(2)(F) requires:

Timely disclosure, in writing, to the agency OIG, with a copy to the Contracting Officer, whenever, in connection with the award, performance, or closeout of any Government contract performed by the Contractor or a subcontractor thereunder, the Contractor has credible evidence that a principal, employee, agent, or subcontractor of the Contractor has committed a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 U.S.C. or a violation of the civil False Claims Act (31 U.S.C. 3729-3733).

These amendments go into effect on December 12, 2008.

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