3.104-9
Contract clauses
Include FAR 52.203-8 and 52.203-10 in all non-commercial contracts exceeding the simplified acquisition threshold to enforce procurement integrity.
Overview
FAR 3.104-9 requires contracting officers to include specific clauses in solicitations and contracts that exceed the simplified acquisition threshold, except for those involving commercial products or commercial services. The two mandatory clauses are FAR 52.203-8 (Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity) and FAR 52.203-10 (Price or Fee Adjustment for Illegal or Improper Activity). These clauses are designed to enforce procurement integrity by providing remedies if illegal or improper activities are discovered during the contracting process.
Key Rules
- Clause Inclusion Requirement
- Solicitations and contracts above the simplified acquisition threshold (currently $250,000) must include FAR 52.203-8 and FAR 52.203-10, unless they are for commercial products or services.
- Exceptions
- Contracts for commercial products or commercial services are exempt from this requirement.
Responsibilities
- Contracting Officers: Must ensure the required clauses are included in applicable solicitations and contracts.
- Contractors: Must be aware that these clauses apply and understand the consequences of illegal or improper activity.
- Agencies: Must oversee compliance and enforce remedies if violations occur.
Practical Implications
- This section exists to deter and address procurement fraud and misconduct.
- Contractors should be vigilant about compliance, as violations can result in contract cancellation, rescission, or financial penalties.
- Omitting these clauses in applicable contracts can lead to compliance issues for agencies and contracting officers.