Overview
This section defines the scope of FAR Subpart 3.2, establishing that its regulations regarding contractor gratuities apply to all executive agencies while narrowing the scope of specific punitive measures.
Key Rules
- General Scope: The subpart is applicable to all executive agencies of the federal government.
- Exemplary Damages Restriction: The authority to seek exemplary damages (punitive financial penalties) for gratuity violations is limited strictly to the Department of Defense (DoD).
- Statutory Basis: The DoD’s specific authority regarding exemplary damages is derived from 10 U.S.C. 4651.
Practical Implications
While all federal contractors must adhere to the rules against providing gratuities to government personnel, those contracting with the Department of Defense face higher financial risk due to the specific threat of exemplary damages in the event of a violation.