Contractor Gratuities to Government Personnel
Contractors are strictly prohibited from offering gratuities to government personnel, and violations can result in contract termination or debarment.
Overview
FAR Subpart 3.2 addresses the prohibition of contractor gratuities (gifts, favors, or anything of value) to government personnel in connection with government contracts. Its purpose is to prevent improper influence, bribery, or conflicts of interest in federal contracting. The subpart outlines the applicability of these rules, mandates the inclusion of a Gratuities clause in contracts, establishes procedures for reporting suspected violations, and details the consequences for contractors found in violation, including potential contract termination or debarment.
Key Rules
- Applicability
- The gratuities prohibition applies to all government contracts unless specifically exempted.
- Contract Clause Requirement
- Contracts must include a clause prohibiting contractors from offering or giving gratuities to government personnel.
- Reporting Suspected Violations
- Procedures are established for reporting suspected violations of the Gratuities clause by contractors or their agents.
- Treatment of Violations
- Violations can result in severe penalties, including contract termination for default and possible debarment from future government contracts.
Responsibilities
- Contracting Officers: Must ensure the Gratuities clause is included in contracts and investigate/report suspected violations.
- Contractors: Must not offer or provide gratuities to government personnel and must educate employees and agents on this prohibition.
- Agencies: Must oversee compliance, investigate reports, and enforce penalties as appropriate.
Practical Implications
- This subpart exists to maintain integrity and public trust in government procurement.
- Contractors must have strict internal controls to prevent improper gifts or favors to government employees.
- Failure to comply can result in loss of contracts and exclusion from future government business.