Ethics training program now required for some federal contractors

Workplace learning and performance professionals working with federal contractors should be aware of recent changes to the Federal Acquisition Regulation (FAR), which establishes rules for federal agencies in acquiring goods and services.

The new rules establish a policy that all federal contractors should have a written code of business ethics and conduct, and an ethics and compliance training program. Contractors should also establish an internal control system that facilitates discovery of improper activity in connection with federal contracts, and ensures corrective measures are instituted promptly.

While in some cases compliance with the policy is voluntary, for some large contracts the requirements are mandatory.  Contractors submitting bids for contracts of $5 million or more where performance of the contract is expected to exceed 120 days, must adopt their written code of ethics within 30 days and implement the training and internal control system components within 90 days of the contract award. A copy of the code of ethics must be provided to each employee working on the contract.

The new rules do not spell out required elements for the training program, allowing for flexibility in design and implementation. The new requirement does not apply to small businesses. To view the final rule, visit www.regulations.gov and search “FAR Case 2006-2007.”