[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR3.703]

[Page 56]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 3_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents
 
              Subpart 3.7_Voiding and Rescinding Contracts
 
Sec.  3.703  Authority.

    (a) Section 1(e) of Pub. L. 87-849, 18 U.S.C. 218 (the Act), 
empowers the President or the heads of executive agencies acting under 
regulations prescribed by the President, to declare void and rescind 
contracts and other transactions enumerated in the Act, in relation to 
which there has been a final conviction for bribery, conflict of 
interest, or any other violation of Chapter 11 of Title 18 of the United 
States Code (18 U.S.C. 201-224). Executive Order 12448, November 4, 
1983, delegates the President's authority under the Act to the heads of 
the executive agencies and military departments.
    (b) Subsection 27(e)(3) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 423) (the OFPP Act), as amended, requires a Federal 
agency, upon receiving information that a contractor or a person has 
engaged in conduct constituting a violation of subsection 27 (a) or (b) 
of the OFPP Act, to consider recission of a contract with respect to 
which--
    (1) The contractor or someone acting for the contractor has been 
convicted for an offense punishable under subsection 27(e)(1) of the 
OFPP Act; or
    (2) The head of the agency, or designee, has determined, based upon 
a preponderance of the evidence, that the contractor or someone acting 
for the contractor has engaged in conduct constituting such an offense.

[51 FR 27116, July 29, 1986, as amended at 62 FR 232, Jan. 2, 1997]