Contract clause
Insert clause 52.203-16 in contracts over the simplified acquisition threshold involving contractor employees performing acquisition functions closely associated with inherently governmental functions, except when performed solely by a self-employed individual.
Overview
FAR 3.1106 mandates the use of the contract clause at 52.203-16, Preventing Personal Conflicts of Interest, in solicitations and contracts that exceed the simplified acquisition threshold and require contractor employees to perform acquisition functions closely associated with inherently governmental functions. The clause is required even if only a portion of the contract involves such functions, but its applicability should be limited to those portions. However, the clause should not be included if the work is performed solely by a self-employed individual, rather than contractor employees. This section ensures that contractors and contracting officers address potential personal conflicts of interest when contractor employees are involved in sensitive acquisition activities on behalf of the government.
Key Rules
- Clause Requirement
- Insert clause 52.203-16 in contracts exceeding the simplified acquisition threshold involving acquisition functions closely associated with inherently governmental functions.
- Partial Applicability
- If only part of the contract involves such functions, limit the clause’s applicability to that portion.
- Exclusion for Self-Employed Individuals
- Do not insert the clause if the work is performed entirely by a self-employed individual.
Responsibilities
- Contracting Officers: Must determine when to insert clause 52.203-16 and ensure its scope is properly limited if only part of the contract applies; must not include the clause for self-employed individuals performing all such functions.
- Contractors: Must comply with the requirements of clause 52.203-16 when included in their contract.
- Agencies: Must oversee proper clause inclusion and ensure compliance with conflict of interest prevention measures.
Practical Implications
- This section exists to prevent personal conflicts of interest among contractor employees performing sensitive acquisition functions.
- It impacts contract drafting and compliance, especially for service contracts involving acquisition support.
- Common pitfalls include failing to include the clause when required, or misapplying it to contracts with self-employed individuals only.