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P1250095226zNeQT

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... requirements, international sales, and foreign military sales. ... Engage in on-going program reviews. Program Blueprint. Standards. Foundations. Identify ... – PowerPoint PPT presentation

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Title: P1250095226zNeQT

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A Blueprint for Success The Contractor Code of
Ethics and Business Conduct
Breakout Session Presented by Dr. Tomi Bryan,
President General Counsel
FedLinx, Inc. Date April 15,
2008 Time 320p.m. 420 p.m.
806
3
Why You Will Be Glad You Came!

This program examines the following
The new Contractor Code of Ethics and Business
Conduct
The footprint for creating a code
Some best practices for meeting the new
requirements
Goal to have a compliance program in place that
meets the FAR Requirements

4
NEW FAR PART 3.10

Mandates implementation of a Code of Business
Ethics and conduct
Mandates implementation of an Awareness Program
and internal control systems

5
NEW FAR PART 3.10

3.1002 Policy.
(a) Government contractors must conduct
themselves with the highest degree of integrity
and honesty.
(b) Contractors should have a written code of
business ethics and conduct. To promote
compliance with such code of business ethics and
conduct, contractors should have an employee
business ethics and compliance training program
and an internal control system that

6
NEW FAR PART 3.10

3.1002 Policy continued
(1) Are suitable to the size of the company and
extent of its involvement in Government
contracting
(2) Facilitate timely discovery and disclosure of
improper conduct in connection with Government
contracts and
(3) Ensure corrective measures are promptly
instituted and carried out.

7
The Requirements

Suitable to the size of the company and extent of
its involvement in Government contracting
means the level of sophistication and complexity
of the written code of business ethics and
conduct is driven by number of government
contracts awarded to the contractor and size of
the business

8
What Contracts Are Covered 3.1004

Companies with contracts and subcontracts that
have an expected value over the life of the
contract of more than 5 million and a
performance period of over 120 days

9
What Contracts Are Covered 3.1004

Contract or subcontract is not for commercial
items
Contract or subcontract must not be performed
entirely outside the United States

10
Building a Program that Complies with FAR 3.10

New regulation mandates a compliance program
New regulation offers no guidance on how to
create one
Where does one look to build a compliance
program?

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Building a Program that Complies with FAR 3.10

Best place to start is a gap analysis
What should our companys program look like,
taking into account the size of your company and
the amount of government business it has
What is the current state of the companys
compliance program
Close the gaps!

12
Creating the Gap Analysis A Baseline

Stiff penalties are possible for those who fail
to comply with the laws and rules of government
contracting. This handbook, written by the law
firm of Seyfarth Shaw LLP, will help you keep up
with government contracting requirements. It
explains each segment of compliance, including
offenses and penalties, conducting compliance
audits, responding to criminal investigations,
procurement information, defective pricing, time
charging, progress payments, product
substitution, unallowable costs, cost accounting
standards compliance, contract claims,
acquisitions and mergers, domestic preference
requirements, international sales, and foreign
military sales.

13
Designing the Program

A blueprint for managing responsibilities
Identify the regulatory, statutory and agency
foundations for the program
Draw compliance standards from the regulations,
statutes, and agency requirements

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Designing the Program

A blueprint for managing responsibilities
continued
Develop a policy for each standard
Establish and implement processes for each of the
policies
Engage in on-going program reviews

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Program Blueprint
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Designing the Program Best Practices

The starting point for any government contracting
compliance program should be the Federal
Sentencing Guidelines
Updates to the Guidelines impose new, tougher
standards for ethical behavior and compliance
Six factors are used to assign a culpability
score to organizations
The Guidelines apply to all organizations (large
or small)

17
Determining the Culpability Score

There are four factors that increase punishment
There are two factors that mitigate punishment,
including the existence of an effective
compliance and ethics program

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Requirements for an Effective Program