The new federal contracting rule that requires all companies doing business with the federal government to have an effective ethics and compliance program in place hasn’t even started yet, and already there is clamoring to change it.
Federal Acquisition Rule Subpart 3.10, which will come into effect on Dec. 24, compels companies with government contracts and sub-contracts worth more than $5 million and lasting longer than 120 days to establish a written code of ethics and business conduct within 30 days of winning a contract. The rule also states that contractors must establish an employee ethics and compliance training program and an internal control system “proportionate to the size of the company” within 90 days after a contract is awarded.
