3.201
Applicability
FAR 3.201 clarifies that contractor gratuity rules apply to all executive agencies, but exemplary damages provisions apply only to Department of Defense contracts.
Overview
FAR 3.201 establishes the applicability of Subpart 3.2, which addresses contractor gratuities to government personnel. This section clarifies that the rules in this subpart apply to all executive agencies. However, it specifically notes that provisions related to exemplary damages are only applicable to the Department of Defense (DoD), as referenced in 10 U.S.C. 4651. This distinction is important for both contractors and contracting officers to ensure compliance with agency-specific requirements regarding gratuities and potential penalties.
Key Rules
- General Applicability
- All executive agencies must follow the rules in Subpart 3.2 regarding contractor gratuities.
- Exemplary Damages Limitation
- Only the Department of Defense is subject to the exemplary damages provisions under 10 U.S.C. 4651.
Responsibilities
- Contracting Officers: Must apply Subpart 3.2 to all contracts within executive agencies and recognize the special provision for DoD regarding exemplary damages.
- Contractors: Must be aware that gratuity rules apply across all executive agencies, but exemplary damages are a risk only in DoD contracts.
- Agencies: Ensure proper enforcement and communication of these distinctions to both internal staff and contractors.
Practical Implications
- This section ensures contractors and agencies understand the scope of gratuity regulations and the unique risk of exemplary damages in DoD contracts. Misunderstanding applicability could lead to noncompliance or unexpected penalties, especially for contractors working with multiple agencies.