Overview
This section mandates the inclusion of FAR clause 52.203-5, "Covenant Against Contingent Fees," in specific federal solicitations and contracts to prevent unethical "influence peddling" in the procurement process.
Key Rules
- Mandatory Inclusion: Contracting officers are required to insert clause 52.203-5 in all applicable solicitations and contracts.
- Dollar Threshold: The requirement only applies to procurements exceeding the Simplified Acquisition Threshold (SAT).
- Exemptions: The clause is not required for the acquisition of commercial products or commercial services as defined in FAR Parts 2 and 12.
Practical Implications
- Contracting Officers must verify the procurement type and value to ensure the clause is properly omitted from commercial or low-value buys while strictly included in large-scale non-commercial acquisitions.
- Contractors must ensure that any commissions or fees paid to third parties for securing a contract are paid only to "bona fide" employees or established commercial agencies to avoid breaching this covenant.