52.203-13 — Contractor Code of Business Ethics and Conduct
Researched by the BidStride Research Team
What This Clause Requires
Requires contractors with contracts over $6M exceeding 120 days to maintain a written code of ethics and have an ongoing awareness program and internal control system.
Official Regulation Text
See 48 CFR 52.203-13 for the full regulatory text. This clause requires contractors to adopt a written code of business ethics, establish an awareness program, maintain an internal control system, and timely disclose violations of federal criminal law related to the contract.
Compliance Checklist
- Adopt a written code of ethics within 30 days of contract award
- Establish an employee awareness program
- Maintain an internal control system with a mechanism for anonymous reporting
- Timely disclose violations of federal criminal law to agency IG
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with subcontracts above $6,000,000 where the subcontractor will perform work covered by this clause. Typically appears in contract Sections H, I.
Related Clauses
Frequently Asked Questions
The code must address: compliance with federal law, proper billing and invoicing, conflicts of interest, protection of government property, anti-bribery and kickback prohibitions, and whistleblower protections. It must be distributed to all employees.
You must provide a mechanism for anonymous reporting of suspected violations — typically a hotline, web portal, or ethics email address. Many contractors use third-party ethics hotline services to ensure independence and anonymity.
Credible evidence of violations of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations. You must report within a reasonable time — generally interpreted as within 14 days of forming reasonable belief that a violation occurred.
The ethics hotline/internal controls requirement only applies to contracts over $6M exceeding 120 days AND where the contractor is not a small business. Small businesses are exempt from the internal control system requirement but must still have a written code of ethics.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.