Violations or possible violations
FAR 3.104-7 mandates prompt assessment, documentation, and escalation of procurement integrity violations, with specific remedies and procedures to protect the integrity of the contracting process.
Overview
FAR 3.104-7 outlines the procedures and responsibilities when a contracting officer becomes aware of a violation or possible violation of procurement integrity statutes (41 U.S.C. 2102, 2103, or 2104). The regulation details the steps contracting officers and agency officials must take to assess the impact of the violation on the procurement process, including documentation, escalation, and potential remedies. It also specifies the roles of the Head of the Contracting Activity (HCA) in reviewing, investigating, and determining appropriate actions, which may include canceling procurements, disqualifying offerors, voiding or rescinding contracts, or referring matters for suspension or debarment. The section emphasizes the importance of proportional remedies and allows for urgent awards under certain circumstances, with proper notification and delegation protocols.
Key Rules
- Initial Assessment by Contracting Officer
- Upon learning of a violation or possible violation, the contracting officer must determine if it impacts the pending award or contractor selection and document the findings.
- Escalation and Review
- If there is no impact, documentation is forwarded for concurrence; if there is impact, or if concurrence is not given, the matter is escalated to the HCA.
- HCA Actions
- The HCA reviews all information and may continue the procurement, initiate an investigation, refer for criminal investigation, conclude a violation occurred, or recommend voiding/rescinding the contract.
- Remedies and Enforcement
- The HCA may direct cancellation, disqualification, contract remedies, voiding/rescinding contracts, or refer for suspension/debarment, depending on the severity and effect of the violation.
- Urgent and Compelling Circumstances
- The HCA may authorize contract award or modification in urgent situations after notifying the agency head.
- Delegation of Authority
- HCA authority may be delegated to a qualified senior official.
Responsibilities
- Contracting Officers: Assess and document violations, escalate as required, and withhold award if directed.
- Contractors: Avoid conduct that violates procurement integrity statutes; cooperate with investigations.
- Agencies/HCAs: Review violations, determine and implement appropriate remedies, and ensure proper documentation and escalation.
Practical Implications
- This section ensures integrity in the procurement process by establishing clear procedures for handling violations.
- It impacts daily contracting by requiring prompt reporting, thorough documentation, and strict adherence to escalation protocols.
- Common pitfalls include failure to document findings, improper escalation, or not applying remedies proportionate to the violation.