Scope of subpart
FAR 3.700 establishes the government's authority to void or rescind contracts when serious procurement misconduct, such as bribery or improper information disclosure, is proven.
Overview
FAR 3.700 outlines the scope of Subpart 3.7, which establishes governmentwide policies and procedures for using discretionary authority to void and rescind contracts when there has been serious misconduct related to federal procurement. Specifically, this subpart applies when there is a final conviction or agency head determination involving bribery, conflicts of interest, or improper disclosure or receipt of contractor bid or proposal information or source selection information for personal gain or to provide a competitive advantage. The section clarifies that these procedures are specific to voiding and rescinding contracts for these types of misconduct and do not affect other remedies the government may have, such as common law rights to avoid, rescind, or cancel contracts for other reasons.
Key Rules
- Applicability to Serious Misconduct
- The subpart applies when there is a final conviction or agency head determination of bribery, conflict of interest, or improper information disclosure in federal procurement.
- Discretionary Authority to Void/Rescind
- Provides the government with discretionary authority to declare contracts void and rescind them in cases of specified misconduct.
- Exclusion of Other Remedies
- The subpart does not govern or limit other remedies available to the government, such as common law rights.
Responsibilities
- Contracting Officers: Must be aware of the circumstances under which contracts may be voided or rescinded due to procurement-related misconduct.
- Contractors: Should avoid any actions that could lead to convictions or agency determinations of bribery, conflicts of interest, or improper information disclosure.
- Agencies: Responsible for making determinations and exercising discretionary authority as outlined in this subpart.
Practical Implications
- This section exists to deter and address serious ethical violations in federal contracting.
- It impacts contract validity and can result in contracts being voided or rescinded if misconduct is found.
- Contractors must maintain strict compliance with ethical standards to avoid severe consequences, including loss of contracts.