Washington, D.C. December 12, 2008. The Civilian Agency Acquisition Council and its Department of Defense have approved new rules governing federal contracting which go into effect today.
These rules, the result of a rulemaking proceeding initiated by the General Services Administration and the Department of Defense, now require all major federal contractors to implement “internal controls to detect and prevent improper conduct.” It also requires all contractors to self-report violations of the False Claims Act. Failure to implement these reforms can result in contractor “suspension or debarment.”
“Federal contractors are now required to establish effective internal ‘employee concerns’ programs permitting employee whistleblowers to step forward and report fraud. The rules specifically mandate corporate disclosures of violations of the False Claims Act. These reforms will help save taxpayers billions of dollars and assist employee who courageously blow the whistle on fraud,” said Stephen M. Kohn, President of the National Whistleblower Center.
The relevant portion of the new rules is attached here.