Part 5303 - Improper Business Practices and

Personal Conflicts of Interest

DAFFARS PART 5303 Knowledge Center

2019 Edition

Revised: June 2023

Subpart 5303.1 - SAFEGUARDS

5303.104-2 General

5303.104-3 Statutory and Related Prohibitions, Restrictions, and Requirements

5303.104-4 (a) Disclosure, Protection, and Marking of Contractor Bid or Proposal Information and

Source Selection Information

5303.104-5 Disqualification

5303.104-7 Violations or possible violations

5303.104-9 Contract Clauses

Subpart 5303.2 - CONTRACTOR GRATUITIES TO GOVERNMENT PERSONNEL

5303.202 Contract Clause

5303.204 Treatment of Violations

Subpart 5303.5 - OTHER IMPROPER BUSINESS PRACTICES

5303.570-2 Prohibition Period

Subpart 5303.6 - CONTRACTS WITH GOVERNMENT EMPLOYEES OR ORGANIZATIONS OWNED

OR CONTROLLED BY THEM

5303.602 Exceptions

Subpart 5303.7 - VOIDING AND RESCINDING CONTRACTS

5303.704 Policy

5303.705 Procedures

Subpart 5303.9 - WHISTLEBLOWER PROTECTIONS FOR CONTRACTOR EMPLOYEES

5303.906 Remedies

Subpart 5303.10 - CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT

5303.1003 Requirements
Subpart 5303.11 - PREVENTING PERSONAL CONFLICTS OF INTEREST FOR CONTRACTOR

EMPLOYEES PERFORMING ACQUISITION FUNCTIONS

5303.1104 Mitigation or Waiver

Subpart 5303.1 - SAFEGUARDS

5303.104-2 General

(a) See MP5301.601(a)(i) when supplementing specific definitions to identify individuals who occupy

positions specified in FAR 3.104-3(d)(1)(ii), and any clauses required by 3.104.

(b)(6) Former federal employees have a continuing obligation to the Government not to disclose or

misuse any other information acquired as part of their official duties and which is not generally

available to the public.

5303.104-3 Statutory and Related Prohibitions, Restrictions, and

Requirements

(a) Similar to knowledge of classified information, employee protective obligations of Government

acquisition information extend beyond federal service and further support potential determinations

of personal and organizational conflicts of interest, as well as potential determinations to eliminate

contractors from competing on certain acquisitions due to conflicts of interest.

(c)(1)(ii) See MP5301.601(a)(i) for individuals authorized to approve resumption of participation in a

procurement.

5303.104-4 (a) Disclosure, Protection, and Marking of Contractor Bid or

Proposal Information and Source Selection Information

Any individuals requiring access to Source Selection Information (SSI) as a result of participating on

a source selection or in the performance of their duties must sign a Source Selection Non-Disclosure

Agreement. The Source Selection Non-Disclosure Agreement may be used on an annual basis for

individuals who must have access to SSI in the performance of their official duties throughout the

year, whether or not they participate as part of the actual source selection team.

5303.104-5 Disqualification

(a) Contracting officers should consider ways to engage potential offerors early and respond to

industry queries, pursuant to the contracting officer’s responsibilities under FAR 9.504, to

determine whether former federal employees should be excluded from proposal preparation. When

Contracting officers become aware that a former federal employee is involved in a contractor’s

proposal preparation, the CO shall determine whether that employee should be excluded from the

proposal preparation effort. The CO shall document the supporting rationale within the

determination as to whether the former federal employee should be excluded from the proposal
preparation efforts or not. In addition to the ethics advisory opinions under FAR 3.104-6, should a

former federal employee participate in preparing a competitive proposal on behalf of an employer or

client, and it relates to the prior employment as a federal employee, the individual should inform

his/her employer/client of this fact and have that entity communicate such facts to the Contracting

Officer in accordance with FAR 3.104 and FAR 9.505. One of the guiding principles established by

the decisions of the courts is the obligation of contracting agencies to avoid even the appearance of

impropriety in government procurements. See FAR 3.101-1. In this regard, where a firm may have

gained an unfair competitive advantage through its hiring of a former government official, the

contracting officer may disqualify a firm from a competition based on the appearance of impropriety

tied to an organizational conflict of interest which is created by this situation, that is, even if no

actual impropriety can be shown.

(b) In addition to the cognizant parties identified at FAR 3.104-5(b), if the source selection authority

is the DAFRCO/MAJCOM/FLDCOM/FOA/DRU/CC or CD, the disqualification notice must be

coordinated through the DAFRCO/MAJCOM/FLDCOM/FOA/DRU JA and the SCO. The notice must

include the items at FAR 3.104-5(b) and the following:

(1) Name of requestor

(2) Current position/job title

(3) Projected retirement date

(4) Impact on program/unit mission if disqualification is granted

(5) Proposed replacement individual for official acquisition duties

(6) Commander/Director recommendation

(c) Resumption of participation in a procurement

The contracting officer, after consultation with the parties identified in paragraph (b), will notify the

individual if he or she is disqualified. The individual will remain disqualified unless resumption of

participation in the procurement is granted in accordance with this paragraph.

(2) See MP5301.601(a)(i). In cases where the SCO is the individual disqualified from participation in

a procurement, the cognizant HCA must authorize the individual to resume participation in the

procurement. SAF/AQ and SAF/SQ and their civilian or military deputies have the authority to permit

the cognizant HCA to resume participation in a procurement following contact with an offeror

regarding non-Federal employment.

5303.104-7 Violations or possible violations

(a) The contracting officer must provide a copy of the information and documentation generated

under FAR 3.104-7 to their cognizant HCA, cognizant legal counsel, to SAF/AQC and to SAF/GCR.

(1) The contracting officer must forward the information and determination required by FAR

3.104-7(a)(1) to the clearance approval authority ( DAFFARS 5301.9001(i) ) of the affected

procurement for review.

(f) See MP5301.601(a)(i)for individuals who may authorize award.
5303.104-9 Contract Clauses

(b) If information received under FAR 52.203-10, Price or Fee Adjustment for Illegal or Improper

Activity, indicates that a price or fee adjustment may be appropriate, the contracting officer must

submit notification to the SCO, cognizant HCA and to SAF/GCR.

Subpart 5303.2 - CONTRACTOR GRATUITIES TO

GOVERNMENT PERSONNEL

5303.202 Contract Clause

See MP5301.601(a)(i) for the designee identified in FAR Clause 52.203-3.

5303.204 Treatment of Violations

(a) SAF/GCR is authorized to conduct hearings and make findings of fact in accordance with FAR

3.204(a). If a hearing is held, SAF/GCR will provide recommendations to ASAF(A) or the Principal

Civilian or Military Deputy.

Subpart 5303.5 - OTHER IMPROPER BUSINESS PRACTICES

5303.570-2 Prohibition Period

(a) See MP5301.601(a)(i).

(b) See MP5301.601(a)(i).

Subpart 5303.6 - CONTRACTS WITH GOVERNMENT

EMPLOYEES OR ORGANIZATIONS OWNED OR

CONTROLLED BY THEM

5303.602 Exceptions

See MP5301.601(a)(i) The SCO should review each contract action to ensure no viable alternatives

exist and that every effort is made to avoid any conflict of interest between the employees' interests

and their government duties. Requests must address the following:

(1) Description of requirement;

(2) Amount of the proposed contract and period of performance or delivery date;
(3) Contracting officer’s basis for determining the price fair and reasonable;

(4) Apparent contract awardee -- Government employee’s name, grade/rank, duty/position title, and

organization;

(5) Determination that there is no conflict of interest;

(6) Explanation of the compelling reason why the Government’s needs cannot otherwise reasonably

be met (include description of efforts to obtain services from non-government personnel); and

(7) For recurring requirements, describe the steps that will be taken to avoid future awards to a

Government employee.

Subpart 5303.7 - VOIDING AND RESCINDING CONTRACTS

5303.704 Policy

(c) See MP5301.601(a)(i).

5303.705 Procedures

(a) The contracting officer must forward the facts concerning a final conviction, to include a copy of

the conviction, to SAF/GCR within 30 days after learning of the conviction. The contracting officer

must forward the report to the SCO within 10 calendar days after the contracting activity learns of

the conviction. See the tailorable Notice of Proposed Contract Rescission Action(s) template.

Subpart 5303.9 - WHISTLEBLOWER PROTECTIONS FOR

CONTRACTOR EMPLOYEES

5303.906 Remedies

(c)(1) See MP5301.601(a)(i).

Subpart 5303.10 - CONTRACTOR CODE OF BUSINESS

ETHICS AND CONDUCT

5303.1003 Requirements

(b)(2)(i) Upon receipt of the required disclosure or any notification, contracting officers, working

with legal counsel, must ensure that appropriate steps are taken to preserve remedies available to

the government. Contracting officers also must consider how the disclosed information may impact

pending contract actions in terms of the contractor’s present responsibility and/or the contractor’s
past performance. The contracting officer must promptly provide a copy of any disclosure or

notification received to the SCO and to SAF/GCR using the procedures at DAFFARS 5309.406-3.

(b)(2)(ii) The Government must safeguard and treat the information obtained pursuant to a

contractor’s disclosure or notification as confidential where the information has been marked as

“confidential” or “proprietary” by the company. Even if the information is not marked, the

contracting officer should not publicly disclose the information without prior notification to the

contractor.

Subpart 5303.11 - PREVENTING PERSONAL CONFLICTS OF

INTEREST FOR CONTRACTOR EMPLOYEES PERFORMING

ACQUISITION FUNCTIONS

5303.1104 Mitigation or Waiver

(b) See MP5301.601(a)(i).