Overview
FAR 3.1004 prescribes the specific conditions under which contracting officers must include clauses regarding contractor ethics programs and the physical display of fraud hotline posters in federal solicitations and contracts.
Key Rules
- Contractor Code of Business Ethics and Conduct (FAR 52.203-13): This clause is mandatory for solicitations and contracts expected to exceed $7.5 million with a performance period of 120 days or more.
- Display of Hotline Poster(s) (FAR 52.203-14): This clause is required if the contract exceeds $7.5 million (or a lower agency-specific threshold) and the agency has a poster or uses disaster assistance funds, unless:
- The acquisition is for a commercial product or commercial service; or
- The contract is performed entirely outside the United States.
- Administrative Duties: The Contracting Officer (CO) is responsible for identifying the specific posters and providing the necessary website links or contact information within the text of the hotline clause.
- Agency Flexibility: Agencies have the authority to establish a reporting threshold lower than the standard $7.5 million for the hotline poster requirement.
Practical Implications
- Compliance Readiness: Large-scale contractors must have a formal written code of ethics and internal control systems ready for implementation to meet the requirements of FAR 52.203-13.
- Operational Setup: For non-commercial domestic projects over $7.5 million, contractors must ensure that agency-specific fraud hotline posters are physically displayed at work sites or on company websites as directed by the CO.