Difference between revisions of "Compliance Programs"
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| − | If you have been awarded a contract whose value exceeds $5M and performance period is 120 days or more, you should have | + | If you have been awarded a contract whose value exceeds $5M and performance period is 120 days or more, you should have [[FAR 52.203-13 - Contractor Code of Business Ethics and Conduct]] in your contract. That clause requirements are as follows: |
(1) Within 30 days after contract award, unless the Contracting Officer establishes a longer time period, '''the Contractor shall—''' | (1) Within 30 days after contract award, unless the Contracting Officer establishes a longer time period, '''the Contractor shall—''' | ||
Revision as of 09:17, 7 August 2014
Contents |
Overview
An effective compliance program is good business practice, and in some cases required to do business with the US Government.
The primary purpose of a compliance program is the:
- Prevention of fraud and fraud allegations,
- Ensuring compliance with applicable laws and regulations,
- Ensuring contract compliance,
- Ensuring employees are properly trained in the areas of laws and regulations, and
- Reduces misconduct
- Required and Expected
- Protects the Organization and Management
- Prudent Business Practice
Requirements
If you have been awarded a contract whose value exceeds $5M and performance period is 120 days or more, you should have FAR 52.203-13 - Contractor Code of Business Ethics and Conduct in your contract. That clause requirements are as follows:
(1) Within 30 days after contract award, unless the Contracting Officer establishes a longer time period, the Contractor shall—
• (i) Have a written code of business ethics and conduct; and
• (ii) Make a copy of the code available to each employee engaged in performance of the contract.
(2) The Contractor shall—
• (i) Exercise due diligence to prevent and detect criminal conduct; and
• (ii) Otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.
Non-Compliance
Fraud, or fraud allegations can have severe consequences to contractors. Those consequences range from suspension, to outright debarment, and Non-compliance with applicable laws and regulations and contract compliance can have severe consequences in possible exclusion from government programs by debarment, avoidance of criminal charging and conviction, having questioned costs, and paying penalties for non-compliance. If you are debarred or suspended you will be placed on the "'''Excluded Parties List System (EPLS).''' Thus it is essential to an effective compliance program to ensure employees are properly trained, and regulary conduct training to keep employees current with laws and regulations.
