The Federal Acquisition Regulation (FAR) is a set of governmental requirements that UAB, as an organization that provides goods or services to the U.S. government, must follow. These requirements apply to federal contracts. The UAB Enterprise Code of Conduct, as well as its expectation that UAB employees will raise ethical questions or concerns, is particularly relevant to the selected FAR provisions that appear below:
Significant FAR Requirements
FAR 52.203-13, Contractor Code of Business Ethics and Conduct
And FAR 52.204-14, Display of Hotline Poster
A. Code of Business Ethics and Conduct (FAR 52.203-13(b)(1)(i))
Requires contractors to have a written code of business ethics and conduct, and make a copy of the code available to each employee engaged in the performance of the contract.
B. Training (FAR 52.203-13(c)(1))
Requires an ongoing business ethics and compliance program, including conducting effective training programs on the contractor’s standards and internal control system. The training shall be provided to the contractor’s principals and employees, and as appropriate, the contractor’s agents and subcontractors.
C. Periodic Reviews (FAR 52.203-13(c)(2)(ii)C))
Contains specific requirements for companies to perform periodic reviews of company business practices, procedures, policies, and internal controls, including:
- Monitoring and auditing to detect criminal conduct;
- Periodic evaluation of the effectiveness of the business ethics awareness and compliance program and internal control system (especially if criminal conduct has been detected); and
- Periodic assessment of the risk of criminal conduct, with appropriate steps to design, implement, or modify the business ethics awareness and compliance program and the internal control system as necessary to reduce the risk of criminal conduct identified though this process.
D. Internal Reporting Mechanism (FAR 52.203-13(c)(2)(ii)(D))
Requires the contractor’s internal control system to provide for an internal reporting mechanism, such as a hotline, which allows for anonymity or confidentiality, by which employees may report suspected instances of improper conduct, and instructions for employees to make such reports.
E. Disciplinary Action (FAR 52.203-13(c)(2)(ii)(E))
Requires contractor’s internal control system to provide for disciplinary action for improper conduct or for failing to take reasonable steps to prevent or detect improper conduct.
F. Disclosure of Improper Conduct (FAR 52.203-13(c)(2)(ii)(F))
Provides detailed requirements for making timely disclosure of improper conduct. This provision requires contractors to disclose, in writing, to the agency Office of the Inspector General, with a copy to the contracting officer, whenever the contractor has credible evidence that a principal, employee, agent, or subcontractor has violated Federal criminal law involving fraud, conflict of interest, bribery, or violations with the gratuities regulations or the False Claims Act (FAR 52.203-13(c)(2)(ii)(F)).