SUBPART 203.70--contractor standards of conduct
203.7000 Policy.
203.7001 Procedures.
203.7002 Contract clause.
203.7000 Policy.
Government contractors must
conduct themselves with the highest degree of integrity and honesty. Contractors should have standards of conduct
and internal control systems that—
(1) Are suitable to the
size of the company and the extent of their involvement in Government
contracting,
(2) Promote such
standards,
(3) Facilitate timely
discovery and disclosure of improper conduct in connection with Government
contracts, and
(4) Ensure corrective
measures are promptly instituted and carried out.
203.7001 Procedures.
(a) A contractor's
system of management controls should provide for—
(1) A written code of business ethics and
conduct and an ethics training program for all employees;
(2) Periodic reviews of company business
practices, procedures, policies, and internal controls for compliance with
standards of conduct and the special requirements of Government contracting;
(3) A mechanism, such as a hotline, by which
employees may report suspected instances of improper conduct, and instructions
that encourage employees to make such reports;
(4) Internal and/or external audits, as
appropriate;
(5) Disciplinary action for improper conduct;
(6) Timely reporting to appropriate Government
officials of any suspected or possible violation of law in connection with
Government contracts or any other irregularities in connection with such
contracts; and
(7) Full cooperation with any Government
agencies responsible for either investigation or corrective actions.
(b) Contractors who are
awarded a DoD contract of $5 million or more must display DoD Hotline Posters
prepared by the DoD Office of the Inspector General unless—
(1) The contract will be performed in a foreign
country; or
(2) The contractor has established an internal reporting mechanism and program, as described in paragraph (a) of this section.
203.7002 Contract clause.
Use the clause at 252.203-7002,
Display of DoD Hotline Poster, in solicitations and contracts expected to
exceed $5 million, except when performance will take place in a foreign
country.