48 C.F.R. PART 203—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
Title 48 - Federal Acquisition Regulations System
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36288, July 31, 1991, unless otherwise noted.
Report violations and suspected violations of the following requirements in accordance with 209.406–3 or 209.407–3 and DoDD 7050.5, Coordination of Remedies for Fraud and Corruption Related to Procurement Activities: (a) Certificate of Independent Price Determination (FAR 3.103). (b) Procurement integrity (FAR 3.104). (c) Gratuities clause (FAR 3.203). (d) Antitrust laws (FAR 3.303). (e) Covenant Against Contingent Fees (FAR 3.405). (f) Anti-kickback Act (FAR 3.502). (g) Prohibitions on persons convicted of defense-related contract felonies (203.570). [69 FR 74990, Dec. 15, 2004] (d)(4) For purposes of FAR 3.104–5(d)(4) only, DoD follows the notification procedures in FAR 27.404(h). However, the first sentence in FAR 27.404(h) does not apply to DoD. [56 FR 36288, July 31, 1991, as amended at 62 FR 2612, Jan. 17, 1997] (h) The DoD Inspector General has designated Special Agents of the following investigative organizations as representatives for conducting inspections and audits under the Anti-Kickback Act of 1986: (i) U.S. Army Criminal Investigation Command. (ii) Naval Criminal Investigative Service. (iii) Air Force Office of Special Investigations. (iv) Defense Criminal Investigative Service. [56 FR 36288, July 31, 1991, as amended at 60 FR 29497, June 5, 1995] This subpart implements 10 U.S.C. 2408. For information on 10 U.S.C. 2408, see PGI 203.570–1. [71 FR 14100, Mar. 21, 2006] DoD has sole responsibility for determining the period of the prohibition described in paragraph (b) of the clause at 252.203–7001, Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies. The prohibition period— (a) Shall not be less than 5 years from the date of conviction unless the agency head or a designee grants a waiver in the interest of national security. Follow the waiver procedures at PGI 203.570–2(a); and (b) May be more than 5 years from the date of conviction if the agency head or a designee makes a written determination of the need for the longer period. The agency shall provide a copy of the determination to the address at PGI 203.570–2(b). [69 FR 74990, Dec. 15, 2004] Use the clause at 252.203–7001, Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies, in all solicitations and contracts exceeding the simplified acquisition threshold, except solicitations and contracts for commercial items. [64 FR 14398, Mar. 25, 1999. Redesignated at 69 FR 74990, Dec. 15, 2004] The authority to act for the agency head under this subpart is limited to a level no lower than an official who is appointed by and with the advice of the Senate, without power of redelegation. For the defense agencies, for purposes of this subpart, the agency head designee is the Under Secretary of Defense (Acquisition, Technology, and Logistics). [56 FR 36288, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995; 65 FR 39704, June 27, 2000] Government contractors must conduct themselves with the highest degree of integrity and honesty. Contractors should have standards of conduct and internal control systems that— (1) Are suitable to the size of the company and the extent of their involvement in Government contracting, (2) Promote such standards, (3) Facilitate timely discovery and disclosure of improper conduct in connection with Government contracts, and (4) Ensure corrective measures are promptly instituted and carried out. (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 a DoD contract of $5 million or more must display DoD Hotline Posters prepared by the DoD Office of the Inspector General unless— (1) The contract will be performed in a foreign country; or (2) The contractor has established an internal reporting mechanism and program, as described in paragraph (a) of this section. Use the clause at 252.203–7002, Display of DoD Hotline Poster, in solicitations and contracts expected to exceed $5 million, except when performance will take place in a foreign country.
Title 48: Federal Acquisition Regulations System
PART 203—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST
Section Contents
§ 203.070 Reporting of violations and suspected violations.
203.104 Procurement integrity.
203.104-5 Disclosure of proprietary and source selection information.
203.502-2 Subcontractor kickbacks.
203.570 Prohibition on persons convicted of frauds or other defense-contract-related felonies.
203.570-1 Scope.
203.570-2 Prohibition period.
203.570-3 Contract clause.
203.703 Authority.
203.7000 Policy.
203.7001 Procedures.
203.7002 Contract clause.
§ 203.070 Reporting of violations and suspected violations.
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Subpart 203.1—Safeguards
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203.104 Procurement integrity.
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203.104-5 Disclosure of proprietary and source selection information.
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Subpart 203.5—Other Improper Business Practices
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203.502-2 Subcontractor kickbacks.
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203.570 Prohibition on persons convicted of frauds or other defense-contract-related felonies.
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203.570-1 Scope.
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203.570-2 Prohibition period.
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203.570-3 Contract clause.
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Subpart 203.7—Voiding and Rescinding Contracts
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203.703 Authority.
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Subpart 203.70—Contractor Standards of Conduct
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203.7000 Policy.
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203.7001 Procedures.
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203.7002 Contract clause.
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