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.