3.1001
Definitions
Clear definitions of "subcontract," "subcontractor," and "United States" are essential for proper compliance with the Contractor Code of Business Ethics and Conduct.
Overview
FAR 3.1001 provides definitions for key terms used throughout Subpart 3.10, which addresses the Contractor Code of Business Ethics and Conduct. Understanding these definitions is essential for interpreting the requirements and obligations set forth in the subpart. The section clarifies what constitutes a subcontract, who qualifies as a subcontractor, and the geographic scope covered by the term "United States." These definitions ensure that all parties involved in government contracts have a common understanding of the terms as they apply to ethical conduct and compliance requirements.
Key Rules
- Definition of Subcontract
- A subcontract is any contract made by a subcontractor to provide supplies or services for a prime contract or another subcontract.
- Definition of Subcontractor
- A subcontractor is any supplier, distributor, vendor, or firm that provides supplies or services to a prime contractor or another subcontractor.
- Definition of United States
- The term "United States" includes the 50 states, the District of Columbia, and outlying areas.
Responsibilities
- Contracting Officers: Must apply these definitions when interpreting and enforcing the requirements of Subpart 3.10.
- Contractors: Should ensure that their business ethics and conduct programs address all relevant parties as defined, including subcontractors.
- Agencies: Should use these definitions for oversight and compliance evaluations related to business ethics and conduct.
Practical Implications
- These definitions clarify the scope of who is covered under the Contractor Code of Business Ethics and Conduct, ensuring that both prime contractors and their subcontractors understand their obligations.
- Misunderstanding these terms can lead to compliance gaps, especially regarding the inclusion of subcontractors in ethics programs and reporting requirements.