Author's Note on the Revised Edition
Shortly after Federal Procurement Ethics: The Complete Legal Guide went to the printer, the government made several significant additions to its procurement ethics rules. The full text of these additional rules can be found in the Federal Register at 73 FR 67064 (published November 12, 2008) and also reprinted in Appendix B. In May 2009, Congress added more rules that made significant changes to the False Claims Act—changes that all government contractors need to know not only to comply with the anti-fraud laws, but to comply with the recently added training requirements that make training in the False Claims Act an essential element of corporate ethics training programs.
This latest addition to the procurement ethics rules made it clear that is was now time to update this book to incorporate the government's additions to its procurement ethics rules as well as the revisions to the False Claims Act.
The important 2008 changes affected five key areas:
All government contractors and subcontractors now have a "self-disclosure" duty.
A business ethics awareness and compliance program and an internal control system must now include certain required components.
Commercial item contracts or subcontracts over $5 million with a period of performance of over 120 days now impose a requirement that the contractors and subcontractors have a code of business ethics but not a business ethics awareness and compliance program and an internal control system.
Contracts and subcontracts over $5 million with a period of performance of over 120 days performed outside the United States are now subject to the ethics requirements.
Flowdown requirements are now imposed on contracts and subcontracts that are for commercial items or that will be performed outside the United States.
Congress also made changes to the False Claims Act:
Subcontractors now can violate the False Claims Act.
A contractor failing to report overpayments can violate the False Claims Act.
We hope this revision gives you plain-English explanations of these complex rules and that this book continues to be the complete legal guide to procurement ethics.
