---
kind: "section"
citation: "48 C.F.R. § 1503.1003"
title: "48"
number: "1503.1003"
heading: "Requirements."
url: "https://uscodex.org/cfr/48/1503.1003"
---

# §1503.1003. Requirements.

- (a) **A contractor's system of management controls should provide for—**
  - (1) A written code of business ethics and conduct and an ethics training program for all employees;
  - (2) Periodic reviews of company business practices, procedures, policies and internal controls for compliance with standards of conduct and the special requirements of Government contracting;
  - (3) A mechanism, such as a hotline, by which employees may report suspected instances of improper conduct, and instructions that encourage employees to make such reports;
  - (4) Internal and/or external audits, as appropriate;
  - (5) Disciplinary action for improper conduct;
  - (6) Timely reporting to appropriate Government officials of any suspected or possible violation of law in connection with Government contracts or any other irregularities in connection with such contracts; and
  - (7) Full cooperation with any Government agencies responsible for either investigation or corrective actions.
- (b) Contractors who are awarded an EPA contract of $1 million or more must display EPA Office of Inspector General Hotline Posters unless the contractor has established an internal reporting mechanism and program as described in [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 5 U.S.C. 301 and 41 U.S.C. 1707.

### Source

Source: 81 FR 31178, May 18, 2016, unless otherwise noted.