Mandatory Disclosure Rules
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Contractors Must Self-Report
When contractors violate certain laws or receive overpayments from the government, they are required to self-report this instances. These rules were enacted in November in 2008 and have two components.
A new basis for suspension and debarment from Government Contracting:
A knowing failure by a Principal to timely disclose "credible evidence" of:
- (1) Violations of certain criminal fraud laws, including conflict of interest, bribery, or gratuity violations,
- (2) Violations of the civil False Claims Act, or
- (3) Significant Government Overpayments
Contract Clause 52.203-13
A new contract clause FAR 52.203-13 requires contractors to report violations of the same criminal fraud laws, or civil False Claims Act, if there is credible evidence of such violations. The contract clause only applies to contracts or contract modifications that were awarded after December 12, 2008, and that are expected to exceed $5M in value and performed over more than 120 days.
Grounds for Suspension
The new grounds for Suspension and Debarment are applicable to all Government Contractors. This means, that every company that contracts with the federal government, regardless of contract size, the type of good or service or place of performance, must disclose credible evidence of a listed violation. If the contractor does not disclose, the contractor automatically risks suspension or debarment for failute to timely disclose.
