3.909
Prohibition on providing funds to an entity that requires certain internal confidentiality agreements or statements
Contractors cannot require employees to sign internal confidentiality agreements that restrict lawful whistleblowing, or they risk losing federal contract funding.
Overview
FAR 3.909 prohibits the federal government from providing funds to any entity that requires its employees or subcontractors to sign internal confidentiality agreements or statements that restrict them from lawfully reporting waste, fraud, or abuse to designated government officials. This section implements statutory requirements to ensure whistleblower protections are not undermined by internal company policies. It also establishes requirements for offerors to represent their compliance and mandates the inclusion of specific solicitation provisions and contract clauses to enforce this prohibition.
Key Rules
- Prohibition on Funding
- Agencies cannot provide contract funds to entities with internal confidentiality agreements that restrict lawful whistleblowing or reporting to government authorities.
- Offeror Representation
- Offerors must affirmatively represent, as part of their offer, that they do not require such restrictive agreements or statements.
- Solicitation Provision and Contract Clause
- Solicitations and contracts must include specific language to ensure compliance with this prohibition and to notify contractors of their obligations.
Responsibilities
- Contracting Officers: Must ensure the required solicitation provision and contract clause are included and verify offeror representations.
- Contractors: Must not require or enforce internal confidentiality agreements that restrict lawful disclosures and must accurately represent compliance.
- Agencies: Must withhold funds from non-compliant entities and oversee adherence to whistleblower protection requirements.
Practical Implications
- This rule protects whistleblower rights and ensures transparency in government contracting.
- Contractors must review and, if necessary, revise internal policies to avoid prohibited confidentiality restrictions.
- Failure to comply can result in loss of contract funding and potential legal consequences.