3.104
Procurement integrity
FAR 3.104 mandates strict protection of procurement-sensitive information and imposes severe penalties for improper disclosure or misuse, ensuring fairness and integrity in federal contracting.
Overview
FAR 3.104 establishes strict rules to protect the integrity of the federal procurement process by prohibiting the improper disclosure or receipt of contractor bid, proposal, or source selection information. It outlines statutory prohibitions, restrictions, and requirements to prevent conflicts of interest, unfair competitive advantage, and corruption. The section details how sensitive procurement information must be handled, marked, and protected, and sets forth procedures for disqualification, ethics advisory opinions, and reporting violations. It also prescribes criminal, civil, and administrative penalties for violations and requires the inclusion of specific contract clauses to reinforce compliance.
Key Rules
- Definitions (3.104-1)
- Clarifies key terms such as "contractor bid or proposal information" and "source selection information."
- General Prohibitions (3.104-2, 3.104-3)
- Prohibits improper disclosure or receipt of procurement-sensitive information and restricts certain post-employment activities for former officials.
- Information Handling (3.104-4)
- Requires proper marking, safeguarding, and limited disclosure of sensitive information.
- Disqualification (3.104-5)
- Mandates disqualification of individuals with conflicts of interest or improper access to information.
- Ethics Advisory Opinions (3.104-6)
- Provides a process for seeking ethics guidance on post-government employment restrictions.
- Violations and Penalties (3.104-7, 3.104-8)
- Outlines procedures for reporting violations and details potential penalties.
- Contract Clauses (3.104-9)
- Requires inclusion of procurement integrity clauses in applicable contracts.
Responsibilities
- Contracting Officers: Ensure compliance, safeguard information, report violations, and include required clauses.
- Contractors: Avoid improper receipt or use of sensitive information, report violations, and comply with post-employment restrictions.
- Agencies: Oversee compliance, provide ethics guidance, and enforce penalties for violations.
Practical Implications
- This section exists to maintain fairness and public trust in federal contracting.
- It impacts daily operations by requiring vigilance in handling sensitive information and managing conflicts of interest.
- Common pitfalls include accidental disclosure, failure to properly mark information, and post-employment violations.