3.1103 Procedures. ( a ) By use of the contract clause at 52.203-16, as prescribed at 3.1106, the contracting officer shall require each contractor whose employees perform acquisition functions closely associated with inherently Government functions to— ( 1 ) Have procedures in place to screen covered employees for potential personal conflicts of interest by— ( i ) Obtaining and maintaining from each covered employee, when the employee is initially assigned to the task under the contract, a disclosure of interests that might be affected by the task to which the employee has been assigned, as follows: ( A ) Financial interests of the covered employee, of close family members, or of other members of the covered employee's household.
( B ) Other employment or financial relationships of the covered employee (including seeking or negotiating for prospective employment or business).
( C ) Gifts, including travel; and
( ii ) Requiring each covered employee to update the disclosure statement whenever the employee's personal or financial circumstances change in such a way that a new personal conflict of interest might occur because of the task the covered employee is performing.
( 2 ) For each covered employee— ( i ) Prevent personal conflicts of interest, including not assigning or allowing a covered employee to perform any task under the contract for which the Contractor has identified a personal conflict of interest for the employee that the Contractor or employee cannot satisfactorily prevent or mitigate in consultation with the contracting agency;
( ii ) Prohibit use of non-public information accessed through performance of a Government contract for personal gain; and
( iii ) Obtain a signed non-disclosure agreement to prohibit disclosure of non-public information accessed through performance of a Government contract.
( 3 ) Inform covered employees of their obligation— ( i ) To disclose and prevent personal conflicts of interest;
( ii ) Not to use non-public information accessed through performance of a Government contract for personal gain; and
( iii ) To avoid even the appearance of personal conflicts of interest;
( 4 ) Maintain effective oversight to verify compliance with personal conflict-of-interest safeguards;
( 5 ) Take appropriate disciplinary action in the case of covered employees who fail to comply with policies established pursuant to this section; and
( 6 ) Report to the contracting officer any personal conflict-of-interest violation by a covered employee as soon as identified. This report shall include a description of the violation and the proposed actions to be taken by the contractor in response to the violation, with follow-up reports of corrective actions taken, as necessary.
( b ) If a contractor reports a personal conflict-of-interest violation by a covered employee to the contracting officer in accordance with paragraph (b)(6) of the clause at 52.203-16, Preventing Personal Conflicts of Interest, the contracting officer shall— ( 1 ) Review the actions taken by the contractor;
( 2 ) Determine whether any action taken by the contractor has resolved the violation satisfactorily; and
( 3 ) If the contracting officer determines that the contractor has not resolved the violation satisfactorily, take any appropriate action in consultation with agency legal counsel.