The Network, Inc. Alerting Contractors for Federal Agencies
about New Compliance Regulations
Norcross, Georgia, November 29, 2007
The Network, the leading provider of ethics and compliance hotline programs
for nearly 25 years, is alerting contractors with over $5 million in
U.S. government business about an addition to the Federal Acquisition
Regulations (FAR). FAR Subpart 3.10, “Contractor Code of Ethics
and Business Conduct,” if approved, will strengthen ethics and
compliance regulations. The U.S. General Services Administration (GSA)
proposed these revisions to help address recent fraud against the government. These
revisions will require companies with over $5 million in government contracts
to ensure they have the following:
- A written code of ethics and business conduct
- An employee ethics and compliance training program in place
- Internal control systems adequate for the size of the company and
its involvement in government contracting
The new federal requirements were approved on November 23, 2007. Deadlines
for complying will be extremely short (30-90 days). Penalties for failing
to satisfy these new requirements will range from serious (e.g., payment
delays) to severe (e.g., payment forfeiture, and possibly even debarment
from the federal procurement arena). Government contractors should
review their compliance programs to ensure that they are in line with
the anticipated regulations. The Network will continue to monitor these
developments and provide updates on FAR Subpart 3.10.
About The Network, Inc.
The Network, Inc. has helped clients collect information and address critical
issues such as ethics, risk management and service quality for nearly 25
years. The company provides global services such as hotlines, insurance
claim reporting and employee communications to thousands of organizations
spanning every industry, including nearly 50% of the Fortune 500. www.tnwinc.com
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