3.502-3
Contract clause
Include the Anti-Kickback Procedures clause in all non-commercial contracts and solicitations exceeding $200,000 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 exceeding $200,000, except those for 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. The regulation specifically references Part 12, which governs commercial item acquisitions, to clarify the exemption for commercial contracts.
Key Rules
- Mandatory Clause Inclusion
- The Anti-Kickback Procedures clause (52.203-7) must be included in applicable contracts and solicitations.
- Exemption for Commercial Products/Services
- Contracts for commercial products or services, as defined in Part 12, are exempt from this requirement.
Responsibilities
- Contracting Officers: Must ensure the clause is included in all non-commercial contracts and solicitations over $200,000.
- Contractors: Must comply with the anti-kickback requirements if the clause is included in their contract.
- Agencies: Should monitor compliance and ensure proper clause usage in eligible contracts.
Practical Implications
- This section exists to reinforce anti-kickback protections in government contracting, particularly in subcontracting relationships.
- Contractors should be aware of the clause's requirements and ensure their own and their subcontractors' compliance.
- A common pitfall is failing to include the clause in eligible contracts or misunderstanding the commercial item exemption.