Overview
FAR Subpart 3.1 establishes the ethical framework and "above reproach" standards required for federal acquisitions, mandating complete impartiality and the avoidance of even the appearance of a conflict of interest. It implements the Procurement Integrity Act, setting strict rules for the protection of sensitive information, prohibiting illegal gratuities, and regulating the professional movement of officials between the government and private contractors.
Key Rules
- Standards of Conduct: Government personnel are prohibited from soliciting or accepting gratuities, gifts, or favors from any entity seeking or doing business with their agency.
- Independent Pricing: For most fixed-price contracts, offerors must submit a "Certificate of Independent Price Determination" (FAR 52.203-2) to certify that their prices were reached without communication or collusion with competitors.
- Procurement Integrity Prohibitions: No person may knowingly disclose or obtain "contractor bid or proposal information" or "source selection information" before the award of a contract.
- Employment Contact Reporting: Any agency official participating "personally and substantially" in a procurement exceeding the simplified acquisition threshold who is contacted by an offeror regarding non-Federal employment must report the contact in writing and either reject the possibility or disqualify themselves from the procurement.
- Post-Employment Restrictions: Former officials are banned for one year from accepting compensation from a contractor if they served in key roles (e.g., Procuring Contracting Officer, Source Selection Authority, or Program Manager) on a contract exceeding $10,000,000 awarded to that contractor.
- Information Marking: Source selection information must be marked with the specific legend: "Source Selection Information—See FAR 2.101 and 3.104."
Responsibilities
- Contracting Officers:
- Must insert required solicitation provisions regarding independent pricing.
- Must reject bids/proposals where the Certificate of Independent Price Determination has been deleted or modified in a way that suggests collusion.
- Must report suspected anti-competitive or false certifications to the Attorney General.
- Must notify contractors in writing if they believe proprietary information has been inappropriately marked.
- Agency Officials/Employees:
- Must conduct themselves in a manner that allows for full public disclosure.
- Must protect sensitive procurement data and disqualify themselves when a conflict of interest (such as a job search) arises.
- Agency Ethics Officials: Responsible for receiving employment contact reports and advising officials on disqualification and "seeking employment" regulations.
- Chief of the Contracting Office: Responsible for making written determinations on whether a disclosure of price information was made for the purpose of restricting competition.
- Contractors: Responsible for properly marking their proprietary data and ensuring their employees do not seek or obtain protected source selection information.
Practical Implications
- The "Revolving Door" Guardrails: High-level officials (like PMs or Source Selection Board members) on major programs ($10M+) cannot immediately jump to a paid position with the winning contractor; they must navigate a 1-year "cooling off" period to prevent the reality or appearance of "pay-to-play."
- Zero-Tolerance for Collusion: In real-world scenarios, if a Contracting Officer notices two contractors have submitted identical prices or have shared spreadsheets, they cannot simply ignore it; they are legally mandated to refer the matter to the Department of Justice (Attorney General).
- Immediate Disqualification: If a contractor approaches a government technical lead at a trade show and suggests "we should talk about a job," that official must immediately stop working on any procurement involving that contractor and file a report. Failure to do so can jeopardize the entire procurement and lead to criminal penalties.
- Information Security: Government teams must be meticulous about marking documents. Unmarked source selection information is still protected, but failing to mark it properly can lead to accidental disclosures that result in protests or the cancellation of a procurement.