Mandatory Disclosure: A New Reality

On November 12, 2008, the FAR Council will publish the long-awaited final acquisition rule imposing mandatory disclosure obligations on federal contractors and subcontractors for "significant overpayments," violations of Federal criminal law involving fraud, conflict of interest, bribery or gratuity violations, and violations of the civil False Claims Act. Federal contractors executing a new contract after December 12, 2008, including a commercial item contract or one performed overseas, expected to exceed $5 million and with a performance period of at least 120 days, will be required to make timely disclosures to the agency Inspector General and Contracting Officer and will face potential suspension or debarment for knowing failure to make such disclosures.