Statutory and related prohibitions, restrictions, and requirements
FAR 3.104-3 strictly prohibits improper disclosure, receipt, and use of procurement information, and imposes mandatory reporting and post-employment restrictions to safeguard the integrity of federal contracting.
Overview
FAR 3.104-3 establishes strict prohibitions and requirements to protect the integrity of the federal procurement process. It prohibits the unauthorized disclosure and obtaining of contractor bid, proposal, or source selection information before contract award. The regulation also sets out specific actions for agency officials who are contacted by offerors about potential employment, including mandatory reporting and disqualification procedures. Additionally, it imposes a one-year ban on certain former federal officials from accepting compensation from contractors they were involved with in significant procurement decisions exceeding $10 million. These rules are designed to prevent conflicts of interest, improper influence, and unfair competitive advantages in federal contracting.
Key Rules
- Prohibition on Disclosing Procurement Information
- Officials and advisors with access to sensitive procurement information must not disclose it before contract award, except as allowed by law.
- Prohibition on Obtaining Procurement Information
- No person may knowingly obtain protected procurement information before contract award unless permitted by law.
- Employment Contact Reporting and Disqualification
- Agency officials involved in procurements over the simplified acquisition threshold must report employment contacts with offerors and either reject employment or recuse themselves from the procurement.
- One-Year Ban on Compensation for Former Officials
- Certain former officials are prohibited from accepting compensation from contractors they were involved with in major procurement actions for one year after their involvement.
Responsibilities
- Contracting Officers: Ensure compliance with disclosure, reporting, and post-employment restrictions; retain employment contact reports for two years.
- Contractors: Avoid seeking or using protected information; do not offer employment to covered officials within the restricted period.
- Agencies: Oversee compliance, maintain records, and enforce prohibitions and reporting requirements.
Practical Implications
- These rules exist to prevent procurement fraud, conflicts of interest, and unfair advantages.
- Violations can result in criminal penalties, contract termination, and debarment.
- Common pitfalls include failure to report employment contacts, improper disclosure of information, and post-employment violations.