**PART 1803**\
**IMPROPER BUSINESS PRACTICES**\
**AND PERSONAL CONFLICTS OF INTEREST**

**TABLE OF CONTENTS**

**SUBPART [1803.1](#P53_1160)**     **SAFEGUARDS**\
1803.101                 Standards of conduct.\
1803.101-1             General.\
1803.101-2              Solicitation and acceptance of gratuities by
Government\
                                        personnel.\
1803.104                 Procurement integrity.\
1803.104-1              Definitions.\
1803.104-4 Disclosure, protection, and marking of contractor bid or
proposal

information and source selection information.\
1803.104-7            Violations or possible violations.

1803.104-70 Restrictions on NASA personnel participating in proposal

evaluations or selection decisions.

**SUBPART [1803.2](#P90_5174)      CONTRACTOR GRATUITIES TOGOVERNMENT**\
**                                          PERSONNEL**\
1803.203                 Reporting suspected violations of the
Gratuities clause.

**SUBPART [1803.3](#P95_5443)      REPORTS OF SUSPECTED ANTITRUST**\
**                                          VIOLATIONS**\
1803.303                  Reporting suspected antitrust violations.

**SUBPART [1803.5](#P109_7210)      OTHER IMPROPER BUSINESS PRACTICES**\
1803.502                   Subcontractor kickbacks.

**SUBPART [1803.6](#P114_7406)      CONTRACTS WITH GOVERNMENT
EMPLOYEES**\
**                                          OR ORGANIZATIONS OWNED OR**\
**                                          CONTROLLED BY THEM**\
1803.602                   Exceptions.

**SUBPART [1803.7](#P120_8065)      VOIDING AND RESCINDING CONTRACTS**\
1803.704                   Policy.\
1803.705                  Procedures.

**SUBPART [1803.8](#P129_8631)      LIMITATION ON THE PAYMENT OF FUNDS
TO** **INFLUENCE FEDERAL TRANSACTIONS**\
1803.804                  Policy.\
1803.806                  Processing suspected violations.

**SUBPART [1803.70](#P134_8801) IG HOTLINE POSTERS\
**1803.7000 Policy.\
1803.7001 Contract clause.

**PART 1803**\
**IMPROPER BUSINESS PRACTICES**\
**AND PERSONAL CONFLICTS OF INTEREST**

**Subpart **[]{#P53_1160 .anchor}**1803.1\--Safeguards**

**1803.101   Standards of conduct.**

**1803.101-1   General.**\
     The statutory prohibitions and their application to NASA personnel
are discussed in the Standards of Ethical Conduct for Employees of the
Executive Branch, [**5 CFR Part
2635**](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=5&PART=2635&SECTION=101&TYPE=TEXT),
and the Supplemental Standards of Ethical Conduct for Employees of the
National Aeronautics and Space Administration, [**5 CFR Part
6901**](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=5&PART=6901&SECTION=101&TYPE=TEXT). 
All NASA personnel involved in acquisitions shall become familiar with
these statutory prohibitions. Any questions concerning them shall be
referred to legal counsel.  In addition to criminal penalties, the
statutes provide that transactions entered into in violation of these
prohibitions are voidable (18 U.S.C. 218).

**1803.101-2   Solicitation and acceptance of gratuities by Government**
**personnel.**\
     Any suspected violations shall be reported promptly to the
installation\'s Office of Inspector General.

**1803.104   Procurement integrity.**

**1803.104-1   Definitions.**\
**     \"Agency ethics official\"** means for Headquarters, the General
Counsel and the Associate General Counsel for General Law, and for each
center, the Chief Counsel.

**1803.104-4 Disclosure, protection, and marking of contractor bid or
proposal information and source selection information.**\
     (a)  Government employees serving in the following positions are
authorized access to proprietary or source selection information, but
only to the extent necessary to perform their official duties.\
**            (i)  ** Personnel participating in source evaluation board
(SEB) procedures
(see [**1815.370**](http://www.hq.nasa.gov/office/procurement/regs/1815.htm#1815.370))
or personnel evaluating an offeror\'s or bidder\'s technical or cost
proposal under other competitive procedures, and personnel evaluating
protests.\
**            (ii)**  Personnel assigned to the contracting office.\
**            (iii)** The initiator of the procurement request (to
include the official having principal technical cognizance over the
requirement).\
**            (iv)** Small business specialists.\
**            (v) ** Personnel assigned to counsel\'s office.\
**            (vi)** Personnel assigned to the Defense Contract Audit
Agency and contract administration offices of the Department of
Defense.\
**            (vii)** Personnel responsible for the review and approval
of documents in accordance with the Master Buy Plan Procedure
in [**Subpart
1807.71**](http://www.hq.nasa.gov/office/procurement/regs/1807.htm#P129_9388).\
**            (viii)** Other Government employees authorized by the
contracting officer.\
**            (ix) ** Supervisors, at any level, of the personnel listed
in paragraphs 1803.104-4(a)(i)

through (viii).\
**        (x)  ** Duly designated ombudsman.

(c)**(i) **  The originator of information that may be source selection
information shall consult with the contracting officer or the
procurement officer, who shall determine whether the information is
source selection information. NASA personnel responsible for preparing
source selection information as defined in [**FAR
2.101**](http://acquisition.gov/far/current/html/Subpart 2_1.html#wp1145508)
shall assure that the material is marked with the legend in [**FAR
3.104-4(c)**](http://www.arnet.gov/far/current/html/Subpart_3_1.html#1039209)
at the time the material is prepared.\
**       (ii) ** Unless marked with the legend \"SOURCE SELECTION
INFORMATION \-- SEE FAR 2.101 and 3.104,\" draft specifications,
purchase descriptions, and statements of work are not considered source
selection information and may be released during a market survey in
order to determine the capabilities of potential competitive sources
(see [**FAR Subpart
7.1**](http://www.arnet.gov/far/current/html/Subpart_7_1.html#1046970)).
All documents, once released, must remain available to the public until
the conclusion of the acquisition.

**1803.104-7  Violations or possible violations.**\
  (a)(1)  The Procurement Officer is the individual designated to
receive the contracting officer\'s report of violations.\
  (b)  The head of the contracting activity (HCA) or designee shall
refer all information describing an actual or possible violation to the
installation\'s counsel and inspector general staff and to the Assistant
Administrator for Procurement.\
  (f)  When the HCA or designee determines that award is justified by
urgent and compelling circumstances or is otherwise in the interest of
the Government, then that official shall submit a copy of the
determination to the Assistant Administrator for Procurement
simultaneous with transmittal to the Administrator.

**1803.104-70 Restrictions on NASA personnel participating in proposal
evaluations or selection decisions.**

For acquisitions of any dollar value, an employee may not participate in
a proposal evaluation or selection decision if the employee, or the
employee's spouse or minor child, has any direct or indirect financial,
beneficial, or employment interests in any company participating, or
expected to participate, in the acquisition. Direct or indirect
financial interests are determined through the employee filing of a
Public or Confidential Financial Disclosure Report (SF-278 or OGE 450).
Notwithstanding any information to the contrary on these forms, if the
employee discloses a financial interest in any dollar amount, the
employee is prohibited from participating in the proposal evaluation and
selection process.

**Subpart **[]{#P90_5174 .anchor}**1803.2\--Contract or Gratuities to
Government Personnel**

**1803.203 Reporting suspected violations of the Gratuities clause.**

Any suspected violations of the clause at [**FAR
52.203-3**](http://www.arnet.gov/far/current/html/52_000_206.html#1105991),
Gratuities, shall be reported to the installation\'s Office of Inspector
General.

> **Subpart **[]{#P95_5443 .anchor}**1803.3\--Reports of Suspected
> Antitrust Violations**

**1803.303   Reporting suspected antitrust violations.**\
(b)**(i) ** When offers are received that, in the opinion of the
contracting officer, indicate possible antitrust violations, the
contracting officer shall report the circumstances to the General
Counsel, NASA Headquarters, through the Office of Procurement (Code HS).
Reports should not be submitted automatically but only when there is
reason to believe the offers may not have been arrived at independently.
These reports shall be submitted with conformed copies of bids or
proposals, contract documents, and other supporting data, and shall set
forth \--\
**(A) **The noncompetitive pattern or situation under consideration;\
**            (B) **Purchase experience in the same product or service
for a reasonable period (one or more years) preceding receipt of the
offers under consideration, including unit and total contract prices and
abstracts of bids;\
**            (C)** Community of financial interest among offerors,
insofar as it is known;\
**            (D)** The extent, if any, to which specification
requirements or patents restrict competition;\
**            (E) ** Any information available about the pricing system
employed in offers believed to reflect noncompetitive practices; and\
**           (F) **Any other pertinent information.\
**       (ii) ** Evidence of practices that, in the opinion of the
General Counsel, NASA Headquarters, may violate the antitrust laws shall
be forwarded to the Attorney General of the United States (see [**FAR
3.303**](http://www.arnet.gov/far/current/html/Subpart_3_3.html#1039035)).\
(d) The contracting officer shall submit the identical bid report
required by FAR 3.303(d) to NASA Headquarters, Office of Procurement
(Code HS). The report shall include the reasons for suspecting
collusion. Code HS shall forward a copy to the NASA Office of the
Inspector General.

**Subpart **[]{#P109_7210 .anchor}**1803.5\--Other Improper Business
Practices**

**1803.502 Subcontractor kickbacks.**\
Contracting officers shall report suspected violations of the
Anti-Kickback Act in accordance
with [**1809.470**](http://www.hq.nasa.gov/office/procurement/regs/1809.htm#1809.470).

> **Subpart **[]{#P114_7406 .anchor}**1803.6\--Contracts with Government
> Employees or**\
> **Organizations Owned or Controlled by Them**

**1803.602  Exceptions.**\
The Assistant Administrator for Procurement has been delegated the
authority to authorize an exception to the policy in [**FAR
3.601**](http://www.arnet.gov/far/current/html/Subpart_3_6.html#1039023).
The Assistant Administrator for Procurement has redelegated this
authority to the heads of contracting activities (HCAs) for individual
actions in the aggregate of \$100,000 and below, inclusive of follow-on
acquisitions, with concurrence by the HCA\'s Office of Chief Counsel. 
All requests above the HCA\'s authority shall be forwarded to the
Assistant Administrator for Procurement (Code HS) for approval.

> **Subpart **[]{#P120_8065 .anchor}**1803.7\--Voiding and Rescinding
> Contracts**

**1803.704  Policy.**\
  (a) The Assistant Administrator for Procurement has been delegated
authority to void or rescind contracts when there is a final conviction
for violation of 18 U.S.C. 201-224 (Bribery, Graft and Conflicts of
Interest) relating to them.

**1803.705  Procedures.**\
  (a)  Procurement officers shall make reports to the Assistant
Administrator for Procurement (Code HS). The Assistant Administrator for
Procurement is responsible for the actions, notices, and decisions
required by [**FAR
3.705**](http://www.arnet.gov/far/current/html/Subpart_3_7.html#1039047)(c),
(d), and (e).

**Subpart **[]{#P129_8631 .anchor}**1803.8\--Limitation on the Payment
of Funds\
to Influence Federal Transactions**

**1803.804 Policy.**\
  (b) Procurement officers shall forward one copy of each Disclosure of
Lobbying Activities (SF-LLL) furnished pursuant to [**FAR
3.803**](http://www.arnet.gov/far/current/html/Subpart_3_8.html#1039073)
to the Office of Procurement (Code HS). The original shall be retained
in the contract file. Forms shall be submitted semi-annually by April
15th for the six-month period ending March 31st, and by October 15th for
the period ending September 30th.

**1803.806  Processing suspected violations.**\
     The Assistant Administrator for Procurement (Code HS) is the
designated official to whom suspected violations of the Act shall be
referred.

**Subpart** []{#P134_8801 .anchor}**1803.70\--IG Hotline Posters**

**1803.7000 Policy.**

NASA requires contractors to display NASA hotline posters prepared by
the NASA Office of Inspector General on those contracts specified in
1803.7001, so that employees of the contractor having knowledge of
waste, fraud, or abuse, can readily identify a means to contact NASA\'s
IG.

**1803.7001 Contract clause.**

Contracting officers must insert the clause at 1852.203-70, Display of
Inspector General Hotline Posters, in solicitations and contracts
expected to exceed \$5,000,000 and performed at contractor facilities in
the United States.