Honoring Special Obligations to Our Government Customers
HOW WE WIN
We consider it a privilege to serve government customers and take care to fulfill our special obligations to them.
WHY WE PUT VALUES FIRST
We are customer driven. We recognize that government customers often have different requirements than customers in the private sector. We must pay close attention to these requirements and follow them precisely. This will ensure that we focus on what is important to our customers and avoid penalties that could harm our business or reputation.
WHAT WINNING LOOKS LIKE
We show our commitment to serving government customers by:
- Familiarizing ourselves with the critical requirements of our government contracts
- Complying with all applicable laws for contracts with governments and on exports of products or data, as well as our Federal Government Contracting Policy
- Following rules on hiring or working with current or former government employees
- Knowing precisely how and when to respond to government solicitations for content
- Being mindful of information that is classified or has other special restrictions
- Ensuring that every document or communication is accurate and truthful
- Where required, using current, accurate and certified cost or pricing data when submitting proposals
- Avoiding receipt of unauthorized information about competitors
WHY GOVERNMENT CONTRACTS HAVE SPECIAL REQUIREMENTS
The countries whose governments we serve have laws designed to help ensure that: public funds are spent appropriately; government procurement and contracting processes are managed transparently, honestly, responsibly and consistently; and that national security and the public interest are protected.
Many of our government contracts are with the United States Federal Government. Examples of laws and regulations that impose complex and strict requirements on these contracts include:
- Federal Acquisition Regulation (FAR) governs the way in which government agencies purchase or lease goods and services
- Defense Federal Acquisition Regulation Supplement (DFARS) covers defense industry procurement requirements
- International Traffic in Arms Regulations (ITAR) governs the export and import of defense-related articles and services
THINK FIRST
Q:
I manage procurement for Federal Government contracts. I have just discovered that, a couple of months ago, a supplier made a very minor change to the specification of a component used in products sold to government customers. The supplier told me we weren’t informed of the change because it was so minor and, arguably, improved the component. However, I’m worried that recent shipments to our customers may not be compliant with the relevant government contracts due to this change.
A:
You are right to be concerned. When dealing with government customers, we must follow the contract requirements precisely. If we fail do so—even in a way that seems trivial and inconsequential, or even a change that we think improves the item—the resulting breach of contract could trigger not only financial penalties but, potentially, the risk of being suspended or even debarred from government work. The issue must be reported to the Law Department immediately for advice on how to proceed, as it may require disclosure to the government.