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DOJ Opens Contract Fraud Rule Review

News release, March 6, 2008: “U.S. Senator Claire McCaskill…expressed her concern with a loophole included in a Bush Administration proposal that would exempt overseas federal contractors from being required to report criminal activity, including contractors in Iraq and Afghanistan. In a letter to Jim Nussle, Director of the Office of Management and Budget, McCaskill conveyed concerns that this loophole, if not closed, would be a setback for efforts to improve contracting oversight and accountability…Well-documented reports of fraud, waste, and abuse by contractors in Iraq and Afghanistan highlight the need for more oversight…Nearly every Inspector General dealing with U.S. contracting overseas, including the Office of the Special Inspector General for Iraq Reconstruction (SIGIR), has spoken out against efforts to implement this loophole. SIGIR has said it is “important for the loophole to be closed in order to ensure good government oversight.”

  • Summary: “The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are proposing to amend the
    Federal Acquisition Regulation (FAR), at the request of the Department of Justice (DoJ), in order to require contractors to have a code of ethics and business conduct, establish and maintain specific internal controls to detect and prevent improper conduct in connection with the award or performance of Government contracts or subcontracts, and to notify contracting officers without delay whenever they become aware of violations of Federal criminal law with regard to such contracts or subcontracts.” Federal Acquisition Regulation; FAR Case 2007–006, Contractor Compliance Program and Integrity Reporting. Agencies: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). Action: Proposed rule. November 14, 2007.
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