New Compliance Plan Requirements for Governmental Contractors

If your company has a contract with the Federal Government valued greater than $5 million that entails a performance period of over 120 days, recent regulations now require you to have a written code of business ethics and conduct.

In recent years, Federal authorities have undertaken several initiatives aimed at stamping out perceived fraud in the governmental contracting process. On December 24, 2007 two new additions to the Federal Acquisition Regulation (FAR 52.203-13 and FAR 52.-203.14) went into effect requiring entities with Federal contracts above the threshold amount to have a written code of business ethics and conduct and to post fraud hotline posters within 30 days of the contract award. The written code must be distributed to every employee engaged in the "performance of the contract”.