Procedures
FAR 3.705 establishes a fair, structured process for voiding and rescinding contracts after contractor convictions, ensuring due process and clear agency procedures.
Overview
FAR 3.705 outlines the procedures federal agencies must follow when considering voiding and rescinding contracts due to a contractor’s final conviction for violations of 18 U.S.C. 201-224 (criminal statutes related to bribery, graft, and conflicts of interest). The regulation details the reporting, decision-making, notification, and hearing processes, ensuring contractors are afforded due process while protecting government interests.
Key Rules
- Reporting Requirements
- Any final conviction related to agency contracts must be promptly reported to the agency head or designee, who must also notify the Department of Justice.
- Decision Authority
- The agency head or designee may void and rescind contracts and recover funds or property if a final conviction is established.
- Due Process for Contractors
- Agencies must provide written notice, a 30-day period for contractor response, and an opportunity for a hearing before making a final decision.
- Notice Content
- Notices must specify the contracts, offenses, amounts, property, and benefits involved, and inform the contractor of their rights.
- Final Decision
- The final decision must be in writing, consider tangible benefits retained by the agency, and specify recovery details. These decisions are not subject to standard contract dispute procedures.
Responsibilities
- Contracting Officers: Ensure proper reporting, notification, and adherence to procedural requirements.
- Contractors: Respond to notices, submit information, and request hearings within specified timeframes.
- Agencies: Oversee the process, ensure fairness, and communicate with the Department of Justice.
Practical Implications
This section exists to protect the government from contracts tainted by criminal conduct, while ensuring contractors receive due process. It impacts daily contracting by requiring vigilance in reporting and strict adherence to procedural safeguards. Common pitfalls include failing to provide adequate notice or not following the required process, which can lead to legal challenges.