Overview
This section mandates the inclusion of FAR clause 52.203-3, "Gratuities," in federal solicitations and contracts to prevent the offering of gifts or favors to government personnel.
Key Rules
- Mandatory Insertion: Contracting officers must include the clause at FAR 52.203-3 in solicitations and contracts.
- Threshold: The requirement applies only to contracts with a value exceeding the Simplified Acquisition Threshold (SAT).
- Exemptions:
- Contracts for personal services.
- Agreements between military departments or defense agencies and foreign governments that do not involve the obligation of Department of Defense appropriated funds.
Practical Implications
- Contractors must implement strict internal controls to ensure employees do not offer gifts to government officials, as violating the resulting clause can lead to contract termination and debarment.
- The government has a specific contractual remedy to penalize unethical attempts to influence the award or performance of a contract.