3.202
Contract clause
Contracting officers must include the Gratuities clause in most contracts over the simplified acquisition threshold to prevent improper influence, with limited exceptions.
Overview
FAR 3.202 requires contracting officers to include the clause at 52.203-3, Gratuities, in most solicitations and contracts exceeding the simplified acquisition threshold. This clause is designed to prevent contractors from offering or giving gratuities (such as gifts or favors) to government personnel in connection with obtaining or rewarding favorable treatment in the awarding or administration of contracts. There are specific exceptions: the clause is not required for personal services contracts or for contracts between military departments/defense agencies and foreign governments that do not obligate Department of Defense appropriated funds.
Key Rules
- Mandatory Clause Inclusion
- The Gratuities clause (52.203-3) must be inserted in solicitations and contracts above the simplified acquisition threshold.
- Exceptions
- The clause is not required for personal services contracts or certain contracts with foreign governments involving no DoD appropriated funds.
Responsibilities
- Contracting Officers: Must ensure the Gratuities clause is included in applicable contracts and solicitations.
- Contractors: Must comply with the restrictions on offering gratuities to government personnel as outlined in the clause.
- Agencies: Should oversee compliance and ensure exceptions are properly applied.
Practical Implications
- This section exists to deter improper influence and maintain integrity in the federal procurement process.
- Contractors must be vigilant about compliance to avoid severe penalties, including contract termination.
- Common pitfalls include misunderstanding the exceptions or failing to recognize when the clause must be included.