If your organization plans on being, or is currently a federal contractor, then you should well understand that the very large U.S. Government pie of awarded goods and services amounts to more than $450 Billion on an annual basis. If you want a piece of that 
pie then you must comply with the Contractor Code of Business Ethics and Conduct.
Becoming a federal contractor is very different than being a commercial contractor. Becoming a federal contractor is to understand that in 2018 there will be greater emphasis placed on ethical behavior. The changing rules around what is important to those who review applications will make compliance increasingly difficult. At the outset of this post on ethics I would start with some broad brushstrokes.
Procurement
New regulations as to ethical behavior expected of federal contractors will intensify in the months, but regardless of what is being purchased the entire “transaction” is intended to bolster the public’s trust in all aspects of the contract.
Whether a vendor sells the government battleships or is a five-person organization that does HVAC training, the workplace is expected to comply with a Contractor Code of Business Ethics. To ignore issues such as sexual harassment, bribery, religious, racial or gender discrimination is to invite a permanent loss of government “business.”
While an explanation of all aspects of the Federal Contractor Code of Business Ethics and Conduct is impossible to state within this post, there are important common elements that we should all understand and internalize in 2018:
- Every contractor must be transparent and diligent in making certain there is no unethical, criminal misconduct. Ignorance is not bliss. For example, should complaints be made of sexual or discriminatory behaviors anticipate a major penalty. Poor choices on the part of employees will result in severe consequences.
- It is the duty of every organization to promote an atmosphere of ethical conduct.
- With the context of the Federal Contractor Code of Business Ethics and Conduct, if an organization uncovers unethical behaviors, it must be reported to the Office of the Inspector General, and the Contracting Officer.
- Reporting unethical behavior must occur whenever the organizational who adhering to a Federal Contractor Code of Business Ethics and Conduct has credible evidence that a violation has occurred. This includes accidental overpayments, fraud or suspected illegal gifts and bribes.
- If the contracting officer suspects problems, contractors and their subcontractors must demonstrate full cooperation. They must submit to audits, investigatory actions and agree to corrective actions. Ethical behavior is no longer a cat and mouse game. Cooperation, not obfuscation, is key to maintaining an ethical relationship.
Maintaining an Ethical Code in 2018 – Contractor Code of Business Ethics and Conduct
As 2018 gets underway, any organization that is currently considering or has become an organization that adheres to the Federal Contractor Code of Business Ethics and Conduct must at least have the following actions in place:
- Contractors must have an ongoing business ethics awareness and compliance program.
- The person, committee or department assigned to maintaining a Federal Contractor Code of Business Ethics and Conduct must have a level of authority high up in the company. Ethical behavior should not be relegated to a low-level employee.
- The organization must make certain that the person ultimately assigned to heading the Federal Contractor Code of Business Ethics and Conduct program has not violated ethical policies in the past.
- It is expected in 2018 that the Federal Contractor Code of Business Ethics and Conduct within an organization undergo periodic reviews of business practices, procedures and internal controls which includes monitoring and auditing.
- There must be routine program evaluation, especially if the company has reported any violations or criminal conduct.
- It is expected under the guidelines of Federal Contractor Code of Business Ethics and Conduct that disciplinary actions for improper conduct were enacted when problems occurred. It comes back around to mandatory disclosure.
While the Federal Contractor Code of Business Ethics and Conduct for any organization can be complex or simple and straightforward, what is not in doubt in that employees must be trained and the training must be reinforced.
In 2018 and the years ahead, for federal contractors to ignore their ethical obligations is not just an organization failure but may result in a catastrophic loss of business and severe legal penalties.
Don’t say your organization wasn’t warned ahead of time. 2018 will mark the ethical template for all future adherence to any Federal Contractor Code of Business Ethics and Conduct. Please take it seriously.
-YOUR COMMENTS ARE WELCOME!
