Source: https://www.cao.gov/dfars/part-203-improper-business-practices-and-personal-conflicts-interest
Timestamp: 2020-01-23 00:28:12
Document Index: 44369981

Matched Legal Cases: ['art 203', 'art 203', 'art. 203', 'ART 203', 'art 12', 'art 12', 'ART 203', 'ART 203', 'ART 203', 'ART 203', 'ART 203', 'ART 203', 'art.\n203', 'art 3', 'ART 203']

Part 203 Improper Business Practices and Personal Conflicts of Interest | Acquisition.GOV
HomePart 203 Improper Business Practices and Personal Conflicts of Interest
203.070 Reporting of violations and suspected violations
203.502-2 Subcontractor kickbacks. 203.570 Prohibition on persons convicted of fraud or other defense-contract-related felonies. 203.570-1 Scope. 203.570-2 Prohibition period. 203.570-3 Contract clause.
203.900 Scope of subpart. 203.901 Definitions. 203.903 Policy. 203.904 Procedures for filing complaints. 203.905 Procedures for investigating complaints. 203.906 Remedies. 203.970 Contract clause.
203.070 Reporting
of violations and suspected violations.
(f) Kickbacks (FAR 3.502).
SUBPART 203.1--SAFEGUARDS
203.104-4 Disclosure, protection, and marking of contractor bid or proposal information and source selection information.
203.170 Business practices.
203.171 Senior DoD officials seeking employment with defense contractors.
203.171-1 Scope.
203.171-2 Definition.
203.171-3 Policy.
203.171-4 Solicitation provision and contract clause. 203.104 Procurement integrity.
(d)(3) For purposes of FAR 3.104-4(d)(3) only, DoD follows the notification procedures in FAR 27.404-5(a). However, FAR 27.404-5(a)(1) does not apply to DoD.
To ensure the separation of functions for oversight, source selection, contract negotiation, and contract award, departments and agencies shall adhere to the following best practice policies:
(a) Senior leaders shall not perform multiple roles in source selection for a major weapon system or major service acquisition.
(b) Vacant acquisition positions shall be filled on an “acting” basis from below until a permanent appointment is made. To provide promising professionals an opportunity to gain experience by temporarily filling higher positions, these oversight duties shall not be accrued at the top.
(c) Acquisition process reviews of the military departments shall be conducted to assess and improve acquisition and management processes, roles, and structures. The scope of the reviews should include—
(1) Distribution of acquisition roles and responsibilities among personnel;
(2) Processes for reporting concerns about unusual or inappropriate actions; and
(3) Application of DoD Instruction 5000.2, Operation of the Defense Acquisition System, and the disciplines in the Defense Acquisition Guidebook.
(d) Source selection processes shall be—
(1) Reviewed and approved by cognizant organizations responsible for oversight;
(2) Documented by the head of the contracting activity or at the agency level; and
(3) Periodically reviewed by outside officials independent of that office or agency.
(e) Legal review of documentation of major acquisition system source selection shall be conducted prior to contract award, including the supporting documentation of the source selection evaluation board, source selection advisory council, and source selection authority.
(f) Procurement management reviews shall determine whether clearance threshold authorities are clear and that independent review is provided for acquisitions exceeding the simplified acquisition threshold.
This section implements Section 847 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181).
“Covered DoD official” as used in this section, is defined in the clause at 252.203-7000, Requirements Relating to Compensation of Former DoD Officials.
(a) A DoD official covered by the requirements of Section 847 of Pub. L. 110-181 (a “covered DoD official”) who, within 2 years after leaving DoD service, expects to receive compensation from a DoD contractor, shall, prior to accepting such compensation, request a written opinion from the appropriate DoD ethics counselor regarding the applicability of post-employment restrictions to activities that the official may undertake on behalf of a contractor.
(b) A DoD contractor may not knowingly provide compensation to a covered DoD official within 2 years after the official leaves DoD service unless the contractor first determines that the official has received, or has requested at least 30 days prior to receiving compensation from the contractor, the post-employment ethics opinion described in paragraph (a) of this section.
(c) If a DoD contractor knowingly fails to comply with the requirements of the clause at 252.203-7000, administrative and contractual actions may be taken, including cancellation of a procurement, rescission of a contract, or initiation of suspension or debarment proceedings.
203.171-4 Solicitation provision and contract clause.
(a) Use the clause at 252.203-7000, Requirements Relating to Compensation of Former DoD Officials, in all solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items.
(b) Use the provision at 252.203-7005, Representation Relating to Compensation of Former DoD Officials, in all solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items and solicitations for task and delivery orders.
SUBPART 203.2
(Removed December 15, 2004)
SUBPART 203.3
SUBPART 203.4
SUBPART 203.5--other improper business practices
203.502-2 Subcontractor kickbacks.
203.570-3 Contract clause.
(h) The DoD Inspector General has designated Special Agents of the following investigative organizations as representatives for conducting inspections and audits under 41 U.S.C. chapter 87, Kickbacks:
(i) U.S. Army Criminal Investigation Command.
(ii) Naval Criminal Investigative Service.
(iii) Air Force Office of Special Investigations.
(iv) Defense Criminal Investigative Service.
This subpart implements 10 U.S.C. 2408. For information on 10 U.S.C. 2408, see PGI 203.570-1 (DFARS/PGI view).
(a) Shall not be less than 5 years from the date of conviction unless the agency head or a designee grants a waiver in the interest of national security. Follow the waiver procedures at PGI 203.570-2(a) (DFARS/PGI view); and
(b) May be more than 5 years from the date of conviction if the agency head or a designee makes a written determination of the need for the longer period. The agency shall provide a copy of the determination to the address at PGI 203.570-2(b) (DFARS/PGI view).
Use the clause at 252.203-7001, Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies, in all solicitations and contracts exceeding the simplified acquisition threshold, except solicitations and contracts for commercial items.
SUBPART 203.7--VOIDING AND RESCINDING CONTRACTS
The authority to act for the agency head under this subpart is limited to a level no lower than an official who is appointed by and with the advice of the Senate, without power of redelegation. For the defense agencies, for purposes of this subpart, the agency head designee is the Under Secretary of Defense (Acquisition, Technology, and Logistics).
SUBPART 203.8--LIMITATIONS ON THE PAYMENT OF FUNDS TO INFLUENCE FEDERAL TRANSACTIONS
(Added March 30, 2012)
Report suspected violations to the address at PGI 203.8(a) DFARS/PGI view).
(Revised April 28, 2014)
203.900 Scope of subpart.
203.901 Definitions.
203.903 Policy.
203.904 Procedures for filing complaints.
203.905 Procedures for investigating complaints.
203.906 Remedies.
203.970 Contract clause.
This subpart applies to DoD instead of FAR subpart 3.9.
(1) This subpart implements 10 U.S.C. 2409 as amended by section 846 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), section 842 of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417), and section 827 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239).
(2) This subpart does not apply to any element of the intelligence community, as defined in 50 U.S.C. 3003(4). This subpart does not apply to any disclosure made by an employee of a contractor or subcontractor of an element of the intelligence community if such disclosure—
(i) Relates to an activity or an element of the intelligence community; or
“Abuse of authority,” as used in this subpart, means an arbitrary and capricious exercise of authority that is inconsistent with the mission of DoD or the successful performance of a DoD contract.
(1) Prohibition. 10 U.S.C. 2409 prohibits contractors and subcontractors from discharging, demoting, or otherwise discriminating against an employee as a reprisal for disclosing, to any of the entities listed at paragraph (3) of this section, information that the employee reasonably believes is evidence of gross mismanagement of a DoD contract, a gross waste of DoD funds, an abuse of authority relating to a DoD contract, a violation of law, rule, or regulation related to a DoD contract (including the competition for or negotiation of a contract), or a substantial and specific danger to public health or safety. Such reprisal is prohibited even if it is undertaken at the request of an executive branch official, unless the request takes the form of a non-discretionary directive and is within the authority of the executive branch official making the request.
(3) Entities to whom disclosure may be made:
(i) A Member of Congress or a representative of a committee of Congress.
(ii) An Inspector General that receives funding from or has oversight over contracts awarded for or on behalf of DoD.
(iv) A DoD employee responsible for contract oversight or management.
(v) An authorized official of the Department of Justice or other law enforcement agency.
(vi) A court or grand jury.
(vii) A management official or other employee of the contractor or subcontractor who has the responsibility to investigate, discover, or address misconduct.
(4) Disclosure clarified. An employee who initiates or provides evidence of contractor or subcontractor misconduct in any judicial or administrative proceeding relating to waste, fraud, or abuse on a DoD contract shall be deemed to have made a disclosure.
(5) Contracting officer actions. A contracting officer who receives a complaint of reprisal of the type described in paragraph (1) of this section shall forward it to legal counsel or to the appropriate party in accordance with agency procedures.
(1) Any employee of a contractor or subcontractor who believes that he or she has been discharged, demoted, or otherwise discriminated against contrary to the policy in 203.903 may file a complaint with the Inspector General of the Department of Defense.
(2) A complaint may not be brought under this section more than three years after the date on which the alleged reprisal took place.
(3) The complaint shall be signed and shall contain—
(i) The name of the contractor;
(ii) The contract number, if known; if not, a description reasonably sufficient to identify the contract(s) involved;
(iii) The violation of law, rule, or regulation giving rise to the disclosure;
(iv) The nature of the disclosure giving rise to the discriminatory act, including the party to whom the information was disclosed; and
(v) The specific nature and date of the reprisal..
(1) Unless the DoD Inspector General makes a determination that the complaint is frivolous, fails to allege a violation of the prohibition in 203.903, or has been previously addressed in another Federal or State judicial or administrative proceeding initiated by the complainant, the DoD Inspector General will investigate the complaint.
(2) If the DoD Inspector General investigates the complaint, the DoD Inspector General will—
(i) Notify the complainant, the contractor alleged to have committed the violation, and the head of the agency; and
(ii) Provide a written report of findings to the complainant, the contractor alleged to have committed the violation, and the head of the agency.
(3) Upon completion of the investigation, the DoD Inspector General—
(i) Either will determine that the complaint is frivolous, fails to allege a violation of the prohibition in 203.903, or has been previously addressed in another Federal or State judicial or administrative proceeding initiated by the complainant, or will submit the report addressed in paragraph (2) of this section within 180 days after receiving the complaint; and
(ii) If unable to submit a report within 180 days, will submit the report within the additional time period, up to 180 days, as agreed to by the person submitting the complaint.
(4) The DoD Inspector General may not respond to any inquiry or disclose any information from or about any person alleging the reprisal, except to the extent that such response or disclosure is—
(i) Made with the consent of the person alleging reprisal;
(ii) Made in accordance with 5 U.S.C. 552a (the Freedom of Information Act) or as required by any other applicable Federal law; or
(iii) Necessary to conduct an investigation of the alleged reprisal.
(5) The legal burden of proof specified at paragraph (e) of 5 U.S.C. 1221 (Individual Right of Action in Certain Reprisal Cases) shall be controlling for the purposes of an investigation conducted by the DoD Inspector General, decision by the head of an agency, or judicial or administrative proceeding to determine whether prohibited discrimination has occurred.
(1) Not later than 30 days after receiving a DoD Inspector General report in accordance with 203.905, the head of the agency shall determine whether sufficient basis exists to conclude that the contractor has subjected the complainant to a reprisal as prohibited by 203.903 and shall either issue an order denying relief or shall take one or more of the following actions:
(ii) Order the contractor to reinstate the person to the position that the person held before the reprisal, together with compensatory damages (including back pay), employment benefits, and other terms and conditions of employment that would apply to the person in that position if the reprisal had not been taken.
(iii) Order the contractor to pay the complainant an amount equal to the aggregate amount of all costs and expenses (including attorneys’ fees and expert witnesses’ fees) that were reasonably incurred by the complainant for, or in connection with, bringing the complaint regarding the reprisal, as determined by the head of the agency.
(ii) The complainant may bring a de novo action at law or equity against the contractor to seek compensatory damages and other relief available under 10 U.S.C. 2409 in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy. Such an action shall, at the request of either party to the action, be tried by the court with a jury. An action under this authority may not be brought more than two years after the date on which remedies are deemed to have been exhausted.
(4) Whenever a contractor fails to comply with an order issued by the head of agency in accordance with 10 U.S.C. 2409, the head of the agency or designee shall request the Department of Justice to file an action for enforcement of such order in the United States district court for a district in which the reprisal was found to have occurred. In any action brought under this paragraph, the court may grant appropriate relief, including injunctive relief, compensatory and exemplary damages, and reasonable attorney fees and costs. The person upon whose behalf an order was issued may also file such an action or join in an action filed by the head of the agency.
(5) Any person adversely affected or aggrieved by an order issued by the head of the agency in accordance with 10 U.S.C. 2409 may obtain judicial review of the order’s conformance with the law, and the implementing regulation, in the United States Court of Appeals for a circuit in which the reprisal is alleged in the order to have occurred. No petition seeking such review may be filed more than 60 days after issuance of the order by the head of the agency or designee. Review shall conform to Chapter 7 of Title 5, Unites States Code. Filing such an appeal shall not act to stay the enforcement of the order by the head of an agency, unless a stay is specifically entered by the court.
(6) The rights and remedies provided for in this subpart may not be waived by any agreement, policy, form, or condition of employment.
See DoD Class Deviation 2016-O0003, Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements, issued October 29, 2015. This deviation is effective for contract actions issued using DoD funds appropriated by the Continuing Appropriations Act, 2016 and any subsequent FY 2016 appropriations act that extends to FY 2016 funds the same restrictions as are contained in sections 743 of division E, Title VII of the Consolidated and Further Continuing Appropriations Act, 2015. This class deviation remains in effect until incorporated in the FAR or otherwise rescinded.
See DoD Class Deviation 2015-O0010, Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements, issued February 5, 2015. This deviation is effective for contract actions issued using funds made available by the Financial Services and General Government Appropriations Act, 2015 (Division E of the Consolidated and Further Continuing Appropriations Act, 2015, Pub. L. 113-235), or any other Act, to include the Department of Defense Appropriations Act, 2015. This class deviation remains in effect until incorporated in the FAR or otherwise rescinded.
4800 Mark Center Drive, Suite 14L25
Website: https://www.dodig.mil/Programs/Contractor-Disclosure-Program/.
SUBPART 203.70