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Overview

FAR 3.903 establishes statutory protections for contractor and subcontractor employees, prohibiting retaliation against those who disclose evidence of waste, fraud, abuse, or safety violations related to Federal contracts to authorized entities. It ensures that employees can report misconduct without fear of discharge, demotion, or discrimination.

Key Rules

  • Prohibition of Reprisal: Contractors and subcontractors are strictly forbidden from retaliating against employees for disclosing information they reasonably believe evidences gross mismanagement, gross waste of funds, abuse of authority, public health/safety dangers, or legal violations related to a Federal contract.
  • Authorized Recipients of Disclosures: For a disclosure to be protected, it must be made to specific parties, including:
    • Members of Congress or Congressional committees.
    • Inspectors General or the Government Accountability Office (GAO).
    • Federal employees responsible for contract oversight (e.g., COs or CORs).
    • The Department of Justice or law enforcement agencies.
    • Courts or grand juries.
    • The contractor’s own internal management or employees responsible for investigating misconduct.
  • Executive Branch Influence: Reprisals are prohibited even if requested by an executive branch official, unless the request is a non-discretionary directive within that official's authority.
  • Judicial/Administrative Proceedings: Any employee providing evidence in a proceeding related to waste, fraud, or abuse on a Federal contract is legally deemed to have made a protected disclosure.

Practical Implications

  • Contractors must ensure internal HR policies and management training programs emphasize that reporting misconduct—even internally to a supervisor—is a protected activity that cannot result in adverse employment actions.
  • The broad definition of "authorized entities" means contractors cannot restrict an employee's right to report issues directly to the government, and any attempt to do so could result in regulatory non-compliance and legal liability.

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