[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: 48CFR3.703]



[Page 56-57]

 

            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.



[[Page 57]]



    (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]