Client Alert

New Regulation Requires Government Contractors to Self Report Possible Criminal and Civil Violations

December 02, 2008

Kirby D. Behre and Bradley W. Bloodworth

New Federal Acquisition Regulations require Government contractors to disclose certain possible violations of federal criminal law and the Civil False Claims Act and to implement specific internal controls to prevent and detect improper conduct. The Regulations provide for suspension or debarment of Government contractors who knowingly fail to meet the disclosure or internal control requirements, and apply to any contract or subcontract greater than $5,000,000 and more than 120 days in duration, including contracts performed outside the United States and contracts for the acquisition of commercial items. The new requirements are effective December 12, 2008, but portions apply to ongoing contracts.

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