An article published on Monday, February 11 in Washington Technology explains how, as of the end of 2007, the Federal Acquisition Regulation (FAR) now contains a subpart requiring contractors to establish a code of business ethics and conduct. This will only apply for contracts valued in excess of $5 million or with a period of performance greater than 120 days, but it also carries with it a requirement that all large businesses implement ongoing business ethics training. Several other requirements are also included, and more are likely to follow later in 2008. For more details, read the full article: Business ethics the latest addition to FAR
What does this mean for you? First and foremost, it is essential that you learn what parts of the FAR will apply to your contracts and how to remain fully in compliance. While your company may not have any ethics issues or violations of procurement law, if this subpart applies to your contracts, you will still have to meet the various reporting, training, and other ongoing requirements. Prepare early – get your official ethics systems in place early so compliance is not even a concern. And if you don’t enjoy staying up late at night to pour over the FAR and various contract requirements, let us help. We’ll be happy to guide you to success.