3.807
Civil penalties
Agencies must impose and collect civil penalties for improper influence on federal transactions in accordance with the Program Fraud and Civil Remedies Act, unless inconsistent with FAR Subpart 3.8.
Overview
FAR 3.807 requires federal agencies to impose and collect civil penalties for violations related to improper influence on federal transactions, as outlined in the Program Fraud and Civil Remedies Act (PFCRA). This section directs agencies to follow specific statutory provisions (31 U.S.C. 3803, except subsection (c), 3804-3808, and 3812) unless those provisions conflict with the requirements of FAR Subpart 3.8. The intent is to ensure that agencies have a clear process for penalizing fraudulent or improper conduct in connection with federal contracts, grants, or cooperative agreements.
Key Rules
- Imposition of Civil Penalties
- Agencies must impose civil penalties for violations under the PFCRA, except where inconsistent with FAR Subpart 3.8.
- Collection of Penalties
- Agencies are responsible for collecting penalties assessed under the applicable statutory provisions.
Responsibilities
- Contracting Officers: Must be aware of the agency’s authority to impose civil penalties and ensure compliance with reporting and documentation requirements.
- Contractors: Must avoid fraudulent or improper conduct that could trigger civil penalties under the PFCRA.
- Agencies: Must follow statutory procedures for imposing and collecting civil penalties, ensuring alignment with FAR Subpart 3.8.
Practical Implications
- This section reinforces the consequences of attempting to improperly influence federal transactions.
- Contractors should maintain robust compliance programs to avoid violations that could result in significant civil penalties.
- Agencies must coordinate enforcement actions with legal and compliance offices to ensure proper application of the PFCRA and FAR requirements.