[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR3.204]



[Page 50]

 

            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 3.2_Contractor Gratuities to Government Personnel

 

Sec. 3.204  Treatment of violations.



    (a) Before taking any action against a contractor, the agency head 

or a designee shall determine, after notice and hearing under agency 

procedures, whether the contractor, its agent, or another 

representative, under a contract containing the Gratuities clause--

    (1) Offered or gave a gratuity (e.g., an entertainment or gift) to 

an officer, official, or employee of the Government; and

    (2) Intended by the gratuity to obtain a contract or favorable 

treatment under a contract (intent generally must be inferred).

    (b) Agency procedures shall afford the contractor an opportunity to 

appear with counsel, submit documentary evidence, present witnesses, and 

confront any person the agency presents. The procedures should be as 

informal as practicable, consistent with principles of fundamental 

fairness.

    (c) When the agency head or designee determines that a violation has 

occurred, the Government may--

    (1) Terminate the contractor's right to proceed;

    (2) Initiate debarment or suspension measures as set forth in 

subpart 9.4; and

    (3) Assess exemplary damages, if the contract uses money 

appropriated to the Department of Defense.