3.1004 Contract clauses
Source: FAR 3.1004 on acquisition.gov
Contracts over $7.5 million and lasting 120 days or more must include ethics and fraud prevention clauses, with additional hotline poster requirements unless exceptions apply.
Overview
FAR 3.1004 prescribes the use of specific contract clauses to promote ethical conduct and fraud prevention in government contracting. It requires contracting officers to include the Contractor Code of Business Ethics and Conduct clause (FAR 52.203-13) in solicitations and contracts expected to exceed $7.5 million with a performance period of 120 days or more. Additionally, it mandates the inclusion of the Display of Hotline Poster(s) clause (FAR 52.203-14) for contracts exceeding $7.5 million (or a lesser agency-established threshold), except for commercial products/services or contracts performed entirely outside the U.S. The regulation also details requirements for identifying and providing fraud hotline posters and allows agencies to set lower thresholds for poster display based on internal policies.
(a) Insert the clause at FAR 52.203-13, Contractor Code of Business Ethics and Conduct, in solicitations and contracts if the value of the contract is expected to exceed $7.5 million and the performance period is 120 days or more.
(b)
(1) Unless the contract is for the acquisition of a commercial product or commercial service or will be performed entirely outside the United States, insert the clause at 52.203-14, Display of Hotline Poster(s), if–
(i) The contract exceeds $7.5 million or a lesser amount established by the agency; and
(ii)
(A) The agency has a fraud hotline poster; or
(B) The contract is funded with disaster assistance funds.
(2) In paragraph (b)(3) of the clause, the contracting officer shall–
(i) Identify the applicable posters; and
(ii) Insert the website link(s) or other contact information for obtaining the agency and/or Department of Homeland Security poster.
(3) In paragraph (d) of the clause, if the agency has established policies and procedures for display of the OIG fraud hotline poster at a lesser amount, the contracting officer shall replace "$7.5 million" with the lesser amount that the agency has established.