Confidentiality Agreements or Statements

March 20, 2017 -- On January 13, 2017, The Department of Defense (DoD), the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) issued a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the Consolidated and Further Continuing Appropriations Act, 2015, that prohibits the use of funds, appropriated or otherwise made available, for a contract with an entity that requires employees or subcontractors to sign an internal confidentiality agreement that restricts such employees or subcontractors from lawfully reporting waste, fraud, or abuse to a designated Government representative authorized to receive such information. The final rule can be found in the Federal Register at 82 FR 4717.

The rule includes a mandatory flowdown clause, FAR 52.203-19 Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements (Jan 2017) which Lockheed Martin will include in supplier contracts as required. In accordance with this clause, Lockheed Martin is notifying you that the confidentiality provisions contained in the terms and conditions of any current subcontracts and purchase orders or other contracts such as proprietary information nondisclosure agreements shall not be construed to prohibit or otherwise restrict you, as a subcontractor of Lockheed Martin from lawfully reporting waste, fraud, or abuse to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such information under the procurement.

The foregoing rule is consistent with Lockheed Martin’s existing policies with respect to reporting wrongdoing. Lockheed Martin’s standard terms and conditions of purchase include a clause entitled “Communication with Lockheed Martin Customer” which expressly permits, among other things, communications of the nature covered by the final rule. We encourage you to visit our Ethics page on our company website where you will find a link to resources suppliers. Please contact us if you would like more information about this requirement or related matters.