3M Government Contract Compliance Space for 3M Montage © 3M Company and Eckland & Blando LLP 2011 FAPIIS Compliance in a large, mostly commercial, company

3M Government Contract Compliance

Space for 3M Montage

© 3M Company and Eckland & Blando LLP 2011

FAPIIS Compliance in a large, mostly commercial, company

Jim Anderson, 3M CompanyTim Connelly, Eckland & Blando LLP

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FAPIIS Compliance - Agenda

3M Company Demographics

3M Challenges

3M Solution and FAPIIS Tools

Lessons Learned


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3M Company Demographics

Fortune 100 Multinational Diversified Technology Company: Total Company 2010 Sales: $26.7B U.S. sales 2010: $9.2B Federal direct sales 2010: ______ State sales, direct & indirect 2010: ______

Consistently > $10MM current active Federal Ks ~ 33,000 U.S. employees (~ 80,000 worldwide)


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3M Challenges

Highly decentralized Six operating business segments 45 business units and U.S. subsidiaries Manufacturing operations in 28 states

Wide variety of products sold, including sales to state & local governments, in virtually every state

Administrative proceedings and settlements managed at the business unit level

Expertise in government contracting laws, regulations & process concentrated in Government Contract Compliance Department (GCC)


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3M Challenges (continued)

Information for “representation” entered into FAPIIS is “current, accurate and complete as of the date of submission of [an] offer” IAW FAR 52.209-7(c): Qualifying Federal or State “proceeding”? Is it “in connection with” award or performance (A/P) of Federal

contract/grant?

Information is “updated” semi-annually to FAPIIS IAW FAR 52.209-9(a): Qualifying Federal or State “proceeding”? Is it “in connection with” A/P of Federal contract/grant?


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The 3M Solution

Semi-annual survey of 34 Division attorneys Educate sufficiently, but avoid “FAR 101” Valid poll Request interim updates

Create a tool Serve as FAPIIS reference Easily navigable Adaptable for future FAPIIS expansion

Supplemented by ongoing training & other GCC tools


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3M Semi-Annual FAPIIS Survey

Is/are there any reportable proceeding(s) for the business unit/staff unit/U.S. subsidiary/International subsidiary for which you are assigned as 3M legal counsel?

o Noo Yes (you will be contacted)o Don’t know (you will be contacted)


3M FAPIIS Tool: to identify qualifying proceedings

52.209-7(c)(1)

52.209-7(c)(1)(i)

52.209-7(c)(1)(ii)

52.209-7(a)

52.209-7(c)(1)(iii)

52.209-7(c)(1)(iv)

52.209-7(c)(1)



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3M FAPIIS Tool: “in connection with…” determination


NOTNOT

MAY BE MAY BE

UNCLEAR


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Effective aid in identifying “qualifying proceedings”: But, 3M is not the “subject” of APA rulemaking

“In connection with” guidelines fit, so far… Need to clarify that GCC makes this determination

Useful tool adaptable for next phase of FAPIIS implementation

Lessons Learned


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Lessons Learned (continued)

TexConsinLand Matter: “Formal” State admin proceeding for violation of permit Compromised with acknowledgement of fault Compromise included qualifying monetary penalty

Determined not “in connection with” A/P of Federal contract: Single purpose commercial plant

Acknowledgement of fault v. facts suggesting permit limits were exceeded


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FAPIIS Compliancein a large, mostly commercial, company

Questions?

Jim Anderson, 3M Company, 651-733-4407

Tim Connelly, Eckland & Blando LLP, 612-236-0165


Documents

3M Government Contract Compliance Space for 3M Montage © 3M Company and Eckland & Blando LLP 2011 FAPIIS Compliance in a large, mostly commercial, company