Overview
FAR 3.701 establishes the administrative framework for addressing contracts tainted by corruption, such as bribery or illegal information disclosure, while providing a mechanism to deter future misconduct in government procurement.
Key Rules
- Administrative Remedy Triggers: Remedies may be pursued if there is a final conviction for bribery, conflict of interest, or the exchange of protected procurement information for value/advantage.
- Agency Head Authority: An administrative remedy can also be triggered by an agency head’s determination that bid, proposal, or source selection information was improperly disclosed or received to gain a competitive advantage.
- Scope of Misconduct: The regulation covers specific acts including bribery, conflicts of interest, and the exchange of "thing[s] of value" for sensitive acquisition data.
- Goal of Deterrence: Beyond addressing specific instances of fraud, the subpart is intended to discourage similar unethical behavior by all parties involved in the award, performance, and administration of contracts.
Practical Implications
- Contractors risk having their contracts voided or rescinded through administrative action, which can occur independently of, or in addition to, criminal proceedings.
- This section underscores the "zero tolerance" policy for procurement integrity violations, placing a heavy burden on contractors to maintain strict internal controls over sensitive bid and proposal information.