Justice Department says it is necessary to make reporting mandatory because "few companies have actually responded" to voluntary disclosure rules.

Federal Contractors Could Be Forced to Self-Report Crimes | By Dana Hedgpeth | Washington Post Staff Writer | Thursday, November 15, 2007; Page D02

The Justice Department has proposed tough new regulations for those who do business with the government, a reflection of the growing number of fraud, bribery and waste cases arising from the multibillion-dollar federal procurement process, say industry experts and regulators.

The new rules would require federal contractors to report themselves if any of their employees -- or subcontractors -- violate a criminal law related to a contract worth more than $5 million while that work is being done. If a contractor is caught not reporting its violations, it could be suspended or barred from doing business with the government for up to three years.
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Currently, contractors can voluntarily report themselves. But the Justice Department says it is necessary to make reporting mandatory because "few companies have actually responded" to voluntary disclosure rules.

Having companies turn themselves in "hasn't worked" Spivack said, "so now they're saying, 'We're going to force you to turn yourself in, and if you don't and we find out later, we're going to keep you from doing business with the federal government.' That's giving the government the gun and the bullets and asking them not to shoot you." ...