3.403
Applicability
Contingent fee regulations apply to all federal contracts, including both negotiated and sealed bid contracts, ensuring consistent compliance requirements.
Overview
FAR 3.403 establishes the applicability of Subpart 3.4, which addresses contingent fees in government contracting. This section clarifies that the rules and statutory requirements concerning contingent fees apply to all types of contracts, including both negotiated and sealed bid contracts. While statutory requirements are specifically directed at negotiated contracts, the policy extends these requirements to sealed bid contracts as well, ensuring uniformity in the treatment of contingent fees across all federal procurement methods.
Key Rules
- Universal Applicability
- The contingent fee regulations apply to all federal contracts, regardless of the procurement method.
- Extension of Statutory Requirements
- Statutory requirements for negotiated contracts are also applied, as a matter of policy, to sealed bid contracts.
Responsibilities
- Contracting Officers: Must ensure compliance with contingent fee regulations for all contract types.
- Contractors: Must adhere to contingent fee requirements regardless of whether the contract is negotiated or awarded by sealed bid.
- Agencies: Should enforce consistent application of contingent fee rules across all procurement actions.
Practical Implications
- This section ensures there are no loopholes in contingent fee compliance based on contract type.
- Contractors cannot assume that sealed bid contracts are exempt from contingent fee regulations.
- Uniform application helps prevent improper payments and maintains integrity in the procurement process.