Contract clauses
Contracts over $7.5 million and lasting 120 days or more must include ethics and fraud prevention clauses, with additional hotline poster requirements unless exceptions apply.
Overview
FAR 3.1004 prescribes the use of specific contract clauses to promote ethical conduct and fraud prevention in government contracting. It requires contracting officers to include the Contractor Code of Business Ethics and Conduct clause (FAR 52.203-13) in solicitations and contracts expected to exceed $7.5 million with a performance period of 120 days or more. Additionally, it mandates the inclusion of the Display of Hotline Poster(s) clause (FAR 52.203-14) for contracts exceeding $7.5 million (or a lesser agency-established threshold), except for commercial products/services or contracts performed entirely outside the U.S. The regulation also details requirements for identifying and providing fraud hotline posters and allows agencies to set lower thresholds for poster display based on internal policies.