(Revised
252.203-7000 Reserved
252.203- 7001 Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies
252.203-7002 Display of DoD Hotline Poster
252.203-7000
Reserved.
252.203-7001 Prohibition on
Persons Convicted of Fraud or Other Defense-Contract-Related Felonies.
As prescribed in 203.570-3, use the following clause:
PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-RELATED FELONIES (DEC 2004)
(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
(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) 809-4904.
(End of clause)
252.203-7002 Display of DoD
Hotline Poster.
As prescribed in 203.7002, use the
following clause:
DISPLAY OF DOD HOTLINE POSTER (DEC 1991)
(a) The Contractor shall
display prominently in common work areas within business segments performing
work under Department of Defense (DoD) contracts, DoD
Hotline Posters prepared by the DoD Office of the Inspector General.
(b) DoD Hotline Posters
may be obtained from the DoD Inspector General, ATTN: Defense Hotline,
(c) The Contractor need not comply with paragraph (a) of this clause if it has established a mechanism, such as a hotline, by which employees may report suspected instances of improper conduct, and instructions that encourage employees to make such reports.
(End of clause)