Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements
Contractors must not use internal confidentiality agreements that restrict lawful reporting of waste, fraud, or abuse on government contracts, and must notify employees and subcontractors that any conflicting agreements are void.
Overview
FAR 52.203-19 prohibits contractors from requiring employees or subcontractors to sign internal confidentiality agreements or statements that restrict lawful reporting of waste, fraud, or abuse related to government contracts. The clause ensures that such agreements do not impede individuals from communicating with authorized federal investigative or law enforcement representatives. Contractors must also notify current employees and subcontractors that any conflicting preexisting confidentiality agreements are no longer in effect. The clause does not override requirements for nondisclosure of classified information under specific federal forms. Noncompliance can result in the prohibition of the use of appropriated funds, and contractors are required to flow down this clause to all subcontracts.
Key Rules
- Prohibition on Restrictive Confidentiality Agreements
- Contractors cannot require internal confidentiality agreements that prevent lawful reporting of waste, fraud, or abuse to federal authorities.
- Notification Requirement
- Contractors must inform employees and subcontractors that any conflicting preexisting agreements are no longer valid.
- Exemption for Classified Information
- The clause does not affect nondisclosure agreements required for classified information (e.g., SF 312, Form 4414).
- Funding Consequences
- Government funds may not be used if the contractor is found noncompliant with this clause.
- Flowdown Requirement
- The substance of this clause must be included in all subcontracts.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable contracts and monitor compliance.
- Contractors: Avoid restrictive confidentiality agreements, notify affected parties, and flow down the clause to all subcontracts.
- Agencies: Withhold appropriated funds if noncompliance is determined and oversee enforcement.
Practical Implications
- This clause protects whistleblower rights and ensures transparency in government contracting.
- Contractors must review and update internal confidentiality practices and agreements.
- Failure to comply can result in loss of contract funding and potential legal consequences.