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Message to industry: 'do the right thing'.


Recent headlines have raised concerns about how federal procurements were handled on a variety of levels. Even if you think you know the rules, they could change or be interpreted differently, affecting the sufficiency of your offer, representations, certifications and ultimately, your performance. Certifications could become outdated, or worse, inaccurate. Profits could be affected.

The self-proclaimed "House Democratic Waste, Fraud and Abuse Truth Squad" introduced a bill entitled the Clean Contracting Act, H.R. 6069 (CCA (1) (Common Cryptographic Architecture) Cryptography software from IBM for MVS and DOS applications.

(2) (Compatible Communications A
) last fall. The bill then was referred to various committees for consideration. Some form of the CCA may pass in the 110th Congress.

These proposed changes are a harbinger har·bin·ger  
n.
One that indicates or foreshadows what is to come; a forerunner.

tr.v. har·bin·gered, har·bin·ger·ing, har·bin·gers
To signal the approach of; presage.
 of things that may come. The CCA proposes changes across the procurement landscape. For example, under the CCA, "commercial items" requiting "minor modifications" to meet federal government requirements or containing "modifications of a type customarily available in the commercial marketplace" would no longer be considered "commercial items."

Agencies would be prohibited from hiring contractors to perform contract oversight if such contractors, or their related entities, had a conflict of interest relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 the work the contractor would oversee. A contractor's ability to mitigate an apparent or actual conflict might be eliminated. Both sides of the revolving door would be tightened, and government procurement Government procurement, also called public tendering, is the procurement of goods and services on behalf of a public authority, such as a government agency. With 10 to 15% of GDP in developed countries, and up to 20% in developing countries, government procurement accounts  officials would be forced to disclose contractor job offers made to their relatives to deter corruption. Contractors evidencing a pattern of violating certain laws would be barred from receiving federal contracts. Only contractors affirmatively determined to have a "satisfactory record of integrity and business ethics business ethics, the study and evaluation of decision making by businesses according to moral concepts and judgments. Ethical questions range from practical, narrowly defined issues, such as a company's obligation to be honest with its customers, to broader social " could be awarded contracts. These determinations could be protested.

Scope and availability of sole source, other than competitively awarded, flexible contracting, and cost reimbursement procurements would be limited. Plans for these procurements would be required and subjected to audit, Government Accountability Office The Government Accountability Office (GAO) is the audit, evaluation, and investigative arm of the United States Congress, and thus an agency in the Legislative Branch of the United States Government.  and/or congressional review. "Monopoly contracts"--a task or delivery order contract of more than $10 million awarded to a single contractor--would be prohibited absent a stated exception. The quantity and dollar value of the work prime and subcontractors Could subcontract under cost reimbursement contracts would be limited. Cost contract award fee consideration would be limited, too. More information, down to the task order level, would be captured, subject to agency oversight and audit, and reports to Congress and the public.

The House Reform Committee would be authorized to conduct hearings on waste, fraud and abuse in federal contracts. Whistleblower whis·tle·blow·er or whis·tle-blow·er or whistle blower  
n.
One who reveals wrongdoing within an organization to the public or to those in positions of authority: "The Pentagon's most famous whistleblower is . .
 protections would be enhanced.

Whether or not the CCA is enacted, it is clear the new Congress will expect more from procurement officials and contractors alike. Procurements will be more closely examined; investigations far more likely. In such an environment, contractors--to serve clients and shareholders--need to think about whether current compliance efforts suffice. Do they establish a culture of good business ethics and integrity? Does the message get delivered from the top and passed down through all levels? Are good business ethics and integrity, compliance with applicable laws, enforced by both a carrot and a stick?

A solid corporate and operations ethics culture is good business and can lead to great rewards. Employees and officers conditioned to act with ethics and integrity are more likely to spot potential problems.

Early problem identification enables easier, faster and potentially cheaper problem resolution. Contractors recognizing potential problems at an early stage find more creative solutions to address those problems. Better planning, results in better offers and increases chances of success. Risks are greatly reduced. A compliance culture encouraging early problem identification will enable a contractor to mobilize faster to address problem activities.

The government searches for responsible primes who make good on their promises. Primes seek subcontractors who do the same. Contractors who encourage good business ethics and integrity perform better, and are more desirable to government and prime contractor alike. Whether a small, medium or large business, if you contract with the government, you will benefit from a working compliance program. The bottom line is more business and the satisfaction that comes from knowing you did the right thing.

Susan Warshaw Ebner is special counsel at Buchanan Ingersoll & Rooney P.C. Janice M. Menker is director of government acquisition policy and an ethics officer at Concurrent Technologies Corp. The opinions expressed here are solely those of the authors and are not intended to provide legal advice or represent the view of NDIA NDIA National Defense Industrial Association
NDIA New Doha International Airport (Qatar) 
 or the NDIA Ethics Committee ethics committee A multidisciplinary hospital body composed of a broad spectrum of personnel–eg, physicians, nurses, social workers, priests, and others, which addresses the moral and ethical issues within the hospital. See DNR, Institutional review board. .

NDIA Ethics Committee

Joe Reeder, Chairman

Attorney, Greenberg Traurig Greenberg Traurig LLP is an international law firm with approximately 1,700 attorneys and governmental professionals in 29 locations in the United States, Europe and Asia. Its presence in Europe is supplemented by strategic alliances with Olswang (offices in London, United Kingdom  LLP LLP - Lower Layer Protocol  

Thomas Culligan

Tofie M. Owen, Jr.

Senior Vice President for Corporate Development, SAIC SAIC - http://saic.com.  

John D. Illgen

Vice President, Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S.  Simulation

Technologies Corporation

Lawrence Skantze

Gen., USAF (Ret.)

W. John Stoddart

Executive Vice President and President Defense, Oshkosh

Truck Corporation

James McAleese

Principal, McAleese & Associates

Dr. Vincent J. Ciccone

President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , RASco Inc.

Steven Talkovsky

Crowell & Moring LLP

Richard D. McConn

President, M International Inc.
COPYRIGHT 2007 National Defense Industrial Association
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Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:ETHICS CORNER
Comment:Message to industry: 'do the right thing'.(ETHICS CORNER)
Author:Menker, Janice M.
Publication:National Defense
Date:Mar 1, 2007
Words:795
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