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Service Contractor Employee Personal Conflicts-of-Interest

Service Contractor Employee Personal Conflicts-of-Interest. FAR Case 2007-017. FAR Advance Notice of Proposed Rulemaking. A FAR Advance Notice of Proposed Rulemaking (ANPR) was published in the Federal Register on March 26, 2008.

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Service Contractor Employee Personal Conflicts-of-Interest

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  1. Service Contractor Employee Personal Conflicts-of-Interest FAR Case 2007-017

  2. FAR Advance Notice of Proposed Rulemaking • A FAR Advance Notice of Proposed Rulemaking (ANPR) was published in the Federal Register on March 26, 2008. • The notice did not propose specific regulatory language. Instead, the ANPR stated our interest in determining if, when, and how -- service contractor employees’ personal conflicts-of-interest need to be addressed.

  3. The notice stated that we are also interested in – • Whether greater disclosureof contractor practices; • Specific provisions; or • Reliance on specific principles -- would be most effective and efficient in promoting ethical behavior.

  4. The ANPR asked for written comments by May 27, 2008. (Federal Register, Vol. 73, No.59, Wednesday, March 26, 2008, pages 15961 – 15962.) • There was also a companion ANPR that addressed similar questions. The other ANPR focused on Contractor Organizational Conflicts-of-interest. The other ANPR was also published in the Federal Register on March 26, 2008. (beginning on page 15962)

  5. These 2 ANPRs are in addition to 2 other recent FAR Cases that address contractor ethics – those 2 are – • FAR Case 2006-007 – Contractor Code of Business Ethics and Conduct (published as a FAR final rule in the Federal Register on November 23, 2007); and • FAR Case 2007-006 – published very recently as a revisedproposed FAR rule in the Federal Register on May 16, 2008) (beginning on page 28407)

  6. The later 2 FAR rules (2006-007 and 2007-006) essentially – • Require contractors to have a code of business ethics (and a fraud hotline) and • If adopted as proposed, would require contractors to report possible violations of criminal law – in connection with award or performance of Federal contracts and subcontracts -- and violations of the civil False Claims Act. (In essence, this would mandate contractor fraud disclosure.)

  7. Thus, we have at least 4 possible FAR amendments on contractor ethics – that are currently being considered. • That begs the questions – how much is enough? What more, if anything, do we need in this area?

  8. That brings us back to FAR Case 2007-017 – the ANPR that we issued to gather input from the public regarding service contractor employee personal conflicts-of-interest. • Why did we issue an ANPR for this when we have several other FAR ethics changes in the works?

  9. We issued this ANPR (and the companion ANPR) in reaction to recommendations from the Acquisition Advisory Panel – authorized by section 1423 of the Services Acquisition Reform Act. (DOD Auth. Act 2004).

  10. The Advisory Panel noted increased agency reliance on contractor employee performance of functions previously performed by government employees. • The Panel found a need to ensure that the increased contractor involvement in agency activities does not undermine the integrity of Government decision-making.

  11. The Advisory Panel recommended that the FAR Council determine when contractor personal conflicts-of-interest need to be addressed, and whether: • greater disclosure; • specific prohibitions; or • reliance on specified principles will accomplish the end objective.

  12. We published the ANPR to get opinions from various stakeholders in Federal acquisition. This is your opportunity – to weigh-in on these important issues.

  13. ANPRs • Service Contractor Employee Personal Conflicts-of-Interest, FAR Case 2007-017, Advance Notice of Proposed Rulemaking (ANPR) (Federal Register, Vol. 73, No.59, March 26, 2008, pages 15961 – 15962.) • Organizational Conflicts-of-Interest, FAR Case 2007-018, Advance Notice of Proposed Rulemaking (ANPR), (Federal Register, Vol. 73, No.59, March 26, 2008, pages 15962 – 15963.)

  14. Proposed Rule and Final Rule • Contractor Compliance Program and Integrity Reporting, FAR Case 2007-006, (2nd Proposed Rule), Federal Register, Vol. 73, No. 96, May 16, 2008, pages 28407 – 28410. • Contractor Code of Business Ethics and Conduct, FAR Case 2006-007, (Final Rule), Federal Register, Vol. 72, No. 225, November 23, 2007, pages 65873 – 65882.

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