FAR 52.203-13 is a clause in the Federal Acquisition Regulation (FAR) that is included in most federal government contracts. This clause is entitled “Contractor Code of Business Ethics and Conduct,” and it requires contractors to implement significant compliance requirements related to business ethics and conduct.

The purpose of this clause is to ensure that contractors maintain the highest standards of integrity and ethics in all aspects of their business operations, especially when conducting work on behalf of the federal government. The clause requires contractors to establish and maintain a written code of business ethics and conduct that addresses a variety of issues, including:

1. Conflicts of interest: Contractors must establish policies and procedures to prevent conflicts of interest between their employees and the government, and to ensure that any potential conflicts are disclosed and resolved.
2. Fraud and False Claims: Contractors must establish policies and procedures to prevent fraud, waste, and abuse, and to ensure that employees report suspected fraud or false claims.
3. Whistleblower Protections: Contractors must establish policies and procedures to protect employees who report suspected wrongdoing, and to prohibit retaliation against whistleblowers.
4. Gifts and Gratuities: Contractors must establish policies and procedures to prevent the giving or receiving of gifts or gratuities that could create the appearance of impropriety.
5. Compliance with Laws and Regulations: Contractors must establish policies and procedures to ensure compliance with all applicable laws and regulations, including those related to labor standards, environmental protection, and equal employment opportunity.

The FAR 52.203-13 clause requires contractors to certify that they have implemented a code of business ethics and conduct that meets these requirements, and to report any violations of this code to the contracting officer. Failure to comply with the requirements of this clause can result in significant penalties, including suspension or debarment from future government contracts.

Learn more: https://www.acquisition.gov/far/52.203-13

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