A balancing act winter education conference contracting february 23 2007
Download
1 / 44

A Balancing Act Winter Education Conference Contracting February 23, 2007 - PowerPoint PPT Presentation


  • 139 Views
  • Uploaded on

National Contract Management Association The Cape Canaveral Chapter. A Balancing Act Winter Education Conference Contracting February 23, 2007. Contract Compliance for Government Contractors. Dr. Ralph “Mike” Criss. Is This The View from Your Window?. What is Compliance?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' A Balancing Act Winter Education Conference Contracting February 23, 2007' - hayden-fulton


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
A balancing act winter education conference contracting february 23 2007

National Contract Management Association

The Cape Canaveral Chapter

A Balancing Act

Winter Education Conference Contracting

February 23, 2007


Contract compliance for government contractors

Contract Compliance for Government Contractors

Dr. Ralph “Mike” Criss



What is compliance
What is Compliance?

People make choices, or choose behaviors, based on their understandings of what is proper and expected under the circumstances.


What is compliance1
What is Compliance?

  • Making Choices in a Framework

    • Behaviors

  • Government Contract Compliance

    • Government Contract Is The Basis

  • A Compliance Program

    • Framework For Choice Making


Ethics
Ethics

  • Ethics & Compliance Are Related

  • Ethics

    • Why People Make Choices

    • Personal Preferences

    • Morals

  • Compliance

    • External Activity (Behaviors)

    • Organizational Structures


Take away
Take Away

  • Hire People With Ethics

    • They Make the Right Choices

  • Tell Them The Rules So They Can Comply

    • Can Choose the Right Behavior


The framework
The Framework

  • Organizational Guidelines

  • The Contract

  • Federal Sentencing Guidelines

  • A Charter and A Committee

  • Internal Control System


An overview of the organizational guidelines
An Overview of the Organizational Guidelines

Paula Desio, Deputy General Counsel, United States Sentencing Commission, has written a very nice one page summary of the organizational guidelines.

She includes eight key criteria for an effective compliance program.

Desio, Paula. An Overview of the Organizational Guidelines, United States Sentencing Commission, Organizational Guidelines,

http://www.ussc.gov/orgguide.htm


Organizational guidelines
Organizational Guidelines

  • Oversight by high-level personnel

  • Due Care in delegating substantial discretionary authority

  • Effective Communications to all levels of the organization


Organizational guidelines1
Organizational Guidelines

  • Reasonable steps to achieve compliance, which include systems for monitoring, auditing, and reporting suspected wrongdoing without fear of reprisal

  • Consistent enforcement of compliance standards including disciplinary mechanisms

  • Reasonable steps to respond to and prevent further similar offenses upon detection of a violation


Company policy

Time keeping

Expense reporting

Gifts and gratuities

Fraternization

Labor Laws

Sharp Business practices

Discriminatory Practices

Harassment in the Workplace

Violence in the Workplace

Procurement and Contracts

Company Policy

Internal Controls



Federal sentencing guidelines
Federal Sentencing Guidelines

  • Part A-Offenses Against the Person

  • Part B-Basic Economic Offenses

  • Part C-Offenses Involving Public Officials and Violations of Federal Election Campaign Laws

  • Part D-Offenses Involving Drugs

  • Part E-Offenses Involving Criminal Enterprises and Racketeering

  • Part G-Offenses Involving Commercial Sex Acts, Sexual Exploitation of Minors, and Obscenity

  • Part H-Offenses Involving Individual Rights

  • Part J-Offenses Involving the Administration of Justice

  • Part K-Offenses Involving Public Safety

  • Part L-Offenses Involving Immigration, Naturalization, and Passports

Taken from the United States Sentencing Commission Guidelines Manual and reflect the sentencing guidelines as of November 1, 2005.

http://www.ussc.gov/2005guid/gl2005.pdf


Federal sentencing guidelines1
Federal Sentencing Guidelines

  • Part M-Offenses Involving National Defense and Weapons of Mass Destruction Treason, Sabotage, Espionage and Related Offenses, Evasion of Military Service, Prohibited Financial Transactions and Exports, and Providing Material Support to Designated Foreign Terrorist Organizations, Nuclear, Biological, and Chemical Weapons and Materials, and Other Weapons of Mass Destruction

  • Part N-Offenses Involving Food, Drugs, Agricultural Products, and Odometer Laws

  • Part P-Offenses Involving Prisons and Correctional Facilities

  • Part Q-Offenses Involving the Environment

  • Part R-Antitrust Offenses

  • Part S-Money Laundering and Monetary Transaction Reporting

  • Part T-Offenses Involving Taxation

  • Part X-Other Offenses


A charter and a committee
A Charter and A Committee

  • Corporate and Executive Committees

    • Who Should Serve?

  • Operational Level Committees

  • Vision Statement

  • Charter

  • Employee Reporting – Hotlines

Internal Controls


A balancing act winter education conference contracting february 23 2007

The Process

Is As Important As The Product

I attribute this phrase to Mr. Jim Dyer, colleague and friend. I do not know if he was this first to say it, but it was from him I heard it first. Jim, as of this writing is a contract manager for Parsons Engineering


A balancing act winter education conference contracting february 23 2007


The decision
The Decision the rules.

Taking responsibility for compliance always comes down to personal choice no matter what level you are in the organization.


Responsibility
Responsibility the rules.

  • Being Personally Responsible Means That You Have Made A Choice To Do The Right Things

  • It Also Means That You Don’t Tolerate Noncompliant Behaviors From Yourself Or Co-workers (At Any Level)

    This Is Difficult


The reality
The Reality the rules.

  • If People Choose To Be Noncompliant

    • It Is Hard To Stop Them

  • Compliance Is A Knowledge Activity

  • If People Know The Rules, and

  • Understand Why They Exist

  • They Will Not Normally Knowingly Violate Them (Ethics)


The reality1
The Reality the rules.

  • If People Are Going To Knowingly Violate The Rules

  • They Need To Know What The Consequences Can Be

  • For Some, They Will Comply Simply Because They Know There Are Consequences

Internal Controls


Take away1
Take Away the rules.

  • Reimbursablity Is Based On Compliance

  • Or Stated Another Way, Being Compliant Ensures Your Company Gets Paid For The Work It Performs


By following the processes the government and the public it represents is ensured
By Following The Processes, The Government, And The Public It Represents, Is Ensured:

  • That They Are Receiving A Fair Bargain

  • Competition Is Properly Obtained

  • Social Programs Are Supported

  • Transactions Are Transparent

  • Their Best Interests Are Protected


More specifically
More Specifically, It Represents, Is Ensured:

  • Auditors Will Have Confidence That What They See Is Representative Of The Company’s Processes

  • The Need For Additional Auditing And Investigating Is Minimized

  • So Are The Costs Of Meeting Government Requirements

Internal Controls


What is a compliance program
What is a Compliance Program? It Represents, Is Ensured:

  • It’s a Choice

  • It’s Leadership

  • Training Programs

  • Rewards and Consequences

  • Roles


Choice
Choice It Represents, Is Ensured:

  • No System Or Program Can Make People Behave In A Compliant Way.

  • People Must Choose To Do So.

  • Employees Must Be Selected That Will Make The Right Choices When They Understand What Choices They Can Make And What Is Expected


Leadership
Leadership It Represents, Is Ensured:

  • Everybody is a Leader

  • No Tolerance Policy

  • A Method to Report

    • Chain of Command

    • Investigations

    • Surveys

    • Hotlines


Training programs
Training Programs It Represents, Is Ensured:

  • Formal

  • In House

Training is How an Employee Learns the Rules


Some formal training

Procurement Integrity It Represents, Is Ensured:

Bribery and Illegal Gratuities Statute

Anti-Kickback Statute

Lobbying

Standards of Ethical Conduct for Employees of the Executive Branch

Berry Amendment

Trade Agreements Act

Foreign Ownership Control and Influence (FOCI)

Foreign Corrupt Practices Act

Export Control

False Claims Act

Some Formal Training


Informal training
Informal Training It Represents, Is Ensured:

  • Consistent

  • Talk the Walk

  • Walk the Walk

  • Involve Everyone

  • Make a Commitment

  • Use In-House and Outside Trainers


Rewards and consequences
Rewards and Consequences It Represents, Is Ensured:

  • Compliant Behaviors Should Be Openly Rewarded

  • Noncompliant Behaviors Need To Have Visible Consequences

Internal Controls


Roles
Roles It Represents, Is Ensured:

  • Executive Management Must Take A Proactive Role In Leading The Compliance Program

  • They Must Challenge Their Functional Managers To Support The Elements Of The Compliance Program And Find Innovative Ways To Implement It

  • Mostly However, The Executive Manager Has To Set The Example


Sustaining the program
Sustaining the Program It Represents, Is Ensured:

  • Once A Compliance Program Has Been Implemented, Sustaining It Becomes Important

  • The Downside Of Not Sustaining The Program Is That Management Loses Credibility And Adherence Is Likely To Be Worse Than If No Program Had Existed


What compliance programs are not
What Compliance Programs Are Not It Represents, Is Ensured:

  • Programs That Solely Point To Their Audit Efforts

  • Rely On The Number Of Findings

    • Not Successful Or Effective

  • Inspection Programs

    • Inspection Programs Belong More In The Realm Of Quality Control


Successful and effective compliance programs
Successful And Effective Compliance Programs It Represents, Is Ensured:

Tie Quality Control, Audit, Corporate Governance, and Common Sense Together


Is this your idea of taking a risk
Is This Your Idea of Taking a Risk? It Represents, Is Ensured:


Taking the risk

Taking the Risk It Represents, Is Ensured:

What Do the Following People Have in Common?


A balancing act winter education conference contracting february 23 2007

Randy “Duke” Cunningham It Represents, Is Ensured:

David Safavian

Darleen Druyun

Kevin Marlowe

Tom Spellissy

Robert Stein

Jeff Mazon

Glenn Powell

Stephen Seamans

Christopher Cahill

Andrew Rose

Lloyd Holliman

Mitchell Kendrix


Indictments and convictions

INDICTMENTS AND CONVICTIONS It Represents, Is Ensured:


A balancing act winter education conference contracting february 23 2007

Since 2004, there have been at least 20 indictments or convictions of government officials and contractors for corruption related to procurement. These have included the conviction of a senior Republican congressman, the indictment of the top White House procurement officials, and the conviction of one of the most senior procurement officials at the Air Force. Corruption has tainted a wide array of contract initiatives, including the reconstruction in Iraq, the response to Hurricane Katrina, and major Defense Department procurements.

Dollars Not Sense

Government Contracting Under the

Bush Administration

Prepared for

Rep, Henry A. Waxman

United States House of Representatives

Committee on Government Reform – Minority Staff

Special Investigations Division

June 2006


Following the rules is not enough
Following the Rules is not Enough… convictions of government officials and contractors for corruption related to procurement. These have included the conviction of a senior Republican congressman, the indictment of the top White House procurement officials, and the conviction of one of the most senior procurement officials at the Air Force. Corruption has tainted a wide array of contract initiatives, including the reconstruction in Iraq, the response to Hurricane Katrina, and major Defense Department procurements.


You need common sense

You Need Common Sense convictions of government officials and contractors for corruption related to procurement. These have included the conviction of a senior Republican congressman, the indictment of the top White House procurement officials, and the conviction of one of the most senior procurement officials at the Air Force. Corruption has tainted a wide array of contract initiatives, including the reconstruction in Iraq, the response to Hurricane Katrina, and major Defense Department procurements.


A balancing act winter education conference contracting february 23 2007

Questions? convictions of government officials and contractors for corruption related to procurement. These have included the conviction of a senior Republican congressman, the indictment of the top White House procurement officials, and the conviction of one of the most senior procurement officials at the Air Force. Corruption has tainted a wide array of contract initiatives, including the reconstruction in Iraq, the response to Hurricane Katrina, and major Defense Department procurements.