3.400
Scope of subpart
FAR 3.400 sets the boundaries for allowable contingent fee arrangements in government contracting, permitting only those specifically authorized by law to prevent unethical influence.
Overview
FAR 3.400 establishes the scope for Subpart 3.4, which addresses the regulation of contingent fee arrangements in the context of government contracting. This section clarifies that only those contingent fee arrangements that are specifically permitted by 10 U.S.C. 3321(b)(1) and 41 U.S.C. 3901 are allowed when soliciting or obtaining government contracts. The intent is to prevent improper influence or unethical practices in the procurement process by restricting the use of contingent fees, which are payments made to a person or company dependent on the success of securing a government contract.
Key Rules
- Restriction on Contingent Fees
- Only contingent fee arrangements allowed by the referenced statutes are permitted in government contracting.
- Policy and Procedure Guidance
- The subpart provides the framework for how these restrictions are implemented and enforced.
Responsibilities
- Contracting Officers: Must ensure that any contingent fee arrangements comply with statutory requirements and are not prohibited.
- Contractors: Must avoid entering into prohibited contingent fee arrangements when seeking government contracts.
- Agencies: Responsible for oversight and enforcement of these restrictions to maintain integrity in the procurement process.
Practical Implications
- This section exists to prevent unethical practices and undue influence in government contracting.
- Contractors and their agents must be aware of and comply with the restrictions on contingent fees to avoid violations.
- Non-compliance can result in contract ineligibility or legal consequences, making it critical for all parties to understand the limitations imposed by law.