DFARS 252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense Contract-Related Felonies. Basic (Dec 2008)

As prescribed in 203.570-3, 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.

PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-RELATED FELONIES (DEC 2008)

      (a)  Definitions.  As used in this clause—

              (1)  “Arising out of a contract with the DoD” means any act in connection with—

                    (i)  Attempting to obtain;

                    (ii)  Obtaining; or

                    (iii)  Performing a contract or first-tier subcontract of any agency, department, or component of the Department of Defense (DoD).

              (2)  “Conviction of fraud or any other felony” means any conviction for fraud or a felony in violation of state or Federal criminal statutes, whether entered on a verdict or plea, including a plea of nolo contendere, for which sentence has been imposed.

              (3)  “Date of conviction” means the date judgment was entered against the individual.

      (b)  Any individual who is convicted after September 29, 1988, of fraud or any other felony arising out of a contract with the DoD is prohibited from serving—

              (1)  In a management or supervisory capacity on this contract;

              (2)  On the board of directors of the Contractor;

              (3)  As a consultant, agent, or representative for the Contractor; or

              (4)  In any other capacity with the authority to influence, advise, or control the decisions of the Contractor with regard to this contract.

      (c)  Unless waived, the prohibition in paragraph (b) of this clause applies for not less than 5 years from the date of conviction.

      (d)  10 U.S.C. 2408 provides that the Contractor shall be subject to a criminal penalty of not more than $500,000 if convicted of knowingly—

              (1)  Employing a person under a prohibition specified in paragraph (b) of this clause; or

              (2)  Allowing such a person to serve on the board of directors of the contractor or first-tier subcontractor.

      (e)  In addition to the criminal penalties contained in 10 U.S.C. 2408, the Government may consider other available remedies, such as—

              (1)  Suspension or debarment;

              (2)  Cancellation of the contract at no cost to the Government; or

              (3)  Termination of the contract for default.

      (f)  The Contractor may submit written requests for waiver of the prohibition in paragraph (b) of this clause to the Contracting Officer.  Requests shall clearly identify—

              (1)  The person involved;

              (2)  The nature of the conviction and resultant sentence or punishment imposed;

              (3)  The reasons for the requested waiver; and

              (4)  An explanation of why a waiver is in the interest of national security.

      (g)  The Contractor agrees to include the substance of this clause, appropriately modified to reflect the identity and relationship of the parties, in all first-tier subcontracts exceeding the simplified acquisition threshold in Part 2 of the Federal Acquisition Regulation, except those for commercial items or components.

      (h)  Pursuant to 10 U.S.C. 2408(c), defense contractors and subcontractors may obtain information as to whether a particular person has been convicted of fraud or any other felony arising out of a contract with the DoD by contacting The Office of Justice Programs, The Denial of Federal Benefits Office, U.S. Department of Justice, telephone 301-937-1542;www.ojp.usdoj.gov/BJA/grant/DPFC.html.

(End of clause)

(g) The Contractor agrees to include the substance of this clause, appropriately modified to reflect the identity and relationship of the parties, in all first-tier subcontracts exceeding the simplified acquisition threshold in Part 2 of the Federal Acquisition Regulation, except those for commercial items or components.

Mandatory (Exception);
Commercial items ✖ 

52.203-16 Preventing Personal Conflicts of Interest.

52.209-3 First Article Approval—Contractor Testing.

52.209-4 First Article Approval—Government Testing.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.215-17 Waiver of Facilities Capital Cost of Money.

52.219-18 Notification of Competition Limited to Eligible 8(a) Concerns.

52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business Concerns.

52.219-6 Notice of Total Small Business Set-Aside.

52.219-7 Notice of Partial Small Business Set-Aside.

52.222-36 Equal Opportunity for Workers with Disabilities.

52.225-7 Waiver of Buy American Statute for Civil Aircraft and Related Articles.

52.227-5 Waiver of Indemnity.

52.228-15 Performance and Payment Bonds—Construction.

52.228-4 Workers’ Compensation and War-Hazard Insurance Overseas.

52.232-12 Advance Payments.

52.234-4 Earned Value Management System.

52.237-8 Restriction on Severance Payments to Foreign Nationals.

52.237-9 Waiver of Limitation on Severance Payments to Foreign Nationals.

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

252.215-7010 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

252.225-7016 Restriction on Acquisition of Ball and Roller Bearings.

252.225-7019 Restriction on Acquisition of Anchor and Mooring Chain.

252.225-7032 Waiver of United Kingdom Levies—Evaluation of Offers.

252.225-7033 Waiver of United Kingdom Levies.

252.225-7037 Evaluation of Offers for Air Circuit Breakers.

252.242-7005 Contractor Business Systems.

252.247-7023 Transportation of Supplies by Sea.

1852.204-76 Security Requirements for Unclassified Information Technology Resources.

1852.227-70 New Technology-Other than a Small Business Firm or Nonprofit Organization.

1852.227-71 Requests for Waiver of Rights to Inventions.

1852.227-88 Government-furnished computer software and related technical data.

1852.228-76 Cross-Waiver of Liability for International Space Station Activities.

1852.228-78 Cross-Waiver of Liability for Science or Space Exploration Activities Unrelated to the International Space Station.

1852.234-2 Earned Value Management System.

1852.245-78 Physical inventory of capital personal property

5252.204-9503 Expediting Contract Closeout (NAVAIR)

5252.209-9513 ORGANIZATIONAL CONFLICT OF INTEREST INSTRUCTIONS (SERVICES) (NAVAIR)

5252.209-9510 ORGANIZATIONAL CONFLICTS OF INTEREST (SERVICES) (NAVAIR)(MAR 2007)

3052.209-70 Prohibition on contracts with corporate expatriates

5152.225-5902 Fitness for Duty and Medical/Dental Care Limitations

652.228-71 Worker’s Compensation Insurance (Defense Base Act) - Services.

752.231-71 Salary supplements for HG employees.

952.209-72 Organizational conflicts of interest.

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