3.502-3
Contract clause
Include the Anti-Kickback Procedures clause (52.203-7) in all non-commercial contracts and solicitations exceeding $150,000 to ensure compliance with anti-kickback regulations.
Overview
FAR 3.502-3 requires contracting officers to include the clause at 52.203-7, Anti-Kickback Procedures, in all solicitations and contracts that exceed $150,000, except for those involving commercial products or commercial services. This clause is designed to prevent and address kickbacks in subcontracting arrangements, ensuring ethical conduct and compliance with anti-kickback statutes in federal contracting. The regulation specifically references Part 12, which governs commercial item acquisitions, to clarify the exemption for commercial products and services.
Key Rules
- Mandatory Clause Inclusion
- The Anti-Kickback Procedures clause (52.203-7) must be included in applicable contracts and solicitations.
- Threshold and Exemptions
- Applies only to contracts exceeding $150,000 and does not apply to contracts for commercial products or services.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included in all relevant solicitations and contracts.
- Contractors: Must comply with the requirements of the Anti-Kickback Procedures clause when it is included in their contract.
- Agencies: Should oversee compliance and ensure proper clause usage in procurement actions.
Practical Implications
- This section exists to reinforce anti-kickback protections in federal contracting, particularly in subcontracting relationships.
- Contractors should be aware of the threshold and exemption to avoid unnecessary compliance efforts for commercial contracts.
- Failure to include or comply with the clause can result in legal and contractual consequences, including potential penalties for kickback violations.