3.701
Purpose
FAR 3.701 establishes that contracts tainted by bribery, conflicts of interest, or improper disclosure of procurement information may be administratively voided or rescinded to deter future misconduct.
Overview
FAR 3.701 outlines the purpose of Subpart 3.7, which is to provide an administrative remedy for contracts tainted by serious ethical violations, such as bribery, conflicts of interest, or improper disclosure of sensitive procurement information. This section applies when there has been either a final conviction for such misconduct or a determination by an agency head that such misconduct has occurred. The regulation aims both to address contracts affected by these violations and to deter future unethical behavior in government contracting.
Key Rules
- Administrative Remedy for Misconduct
- Contracts may be voided or rescinded if there is a final conviction or agency determination of bribery, conflict of interest, or improper disclosure of procurement information.
- Deterrence of Future Misconduct
- The regulation is designed to discourage unethical conduct by establishing clear consequences for violations related to the award or administration of government contracts.
Responsibilities
- Contracting Officers: Must be aware of the remedies available and initiate action if misconduct is identified.
- Contractors: Must avoid engaging in bribery, conflicts of interest, or improper information disclosures, and ensure compliance with ethical standards.
- Agencies: Responsible for investigating allegations, making determinations, and enforcing remedies as necessary.
Practical Implications
- This section exists to protect the integrity of the federal procurement process.
- It impacts contractors by establishing the risk of contract voidance or rescission for serious ethical violations.
- Common pitfalls include failure to maintain ethical standards or inadequate internal controls to prevent misconduct.