401.6 - Contracts with Employees of the Federal Government
2/14/94
OPR: Admin/Procurement and Contracts
1. Purpose. This chapter establishes policies and procedures for procurement awards or contracts with Government employees.
2. Authority.
A. Federal Acquisition Regulation (FAR) Subpart 3.6, Contracts with Government Employees or Organizations Owned or Controlled by Them.
B. Department of the Interior Acquisition Regulation (DIAR) 1403.6, Contracts with Government Employees or Organizations Owned or Controlled by Them.
3. Definition. As used in this chapter, the term "Federal" or "Government" employee includes business concerns substantially owned or controlled by one or more Government employees and includes the spouse and children of an employee. The term does not include special government employees unless any of the conditions of FAR 3.601(b) applies.
4. Policy.
A. The general policy of the Federal Government is stated in the quotation indicated below from a decision of the Comptroller General (14 Comp. Gen. 403) and policy set forth in FAR 3.6:
"... It has been repeatedly held that the United States should not, where the needs of the Government reasonably can be otherwise supplied, contract with its officers or employees for the reason that such contracts are against public policy and would afford grounds for complaint as to alleged favoritism, fraud, etc., in the conduct of the public business..."
B. A Contracting Officer shall not knowingly award a contract or purchase order to a Government employee except under the most compelling reasons and only when approved by Head of the Contracting Activity (Assistant Director for Administration) (DIAR 1403.602).
5. Procedures. When a Contracting Officer has reason to believe that an exception under FAR 3.602 should be made in the best interest of the Government, a request for approval for such procurement award must be submitted to the Assistant Director for Administration for approval per DIAR 1403.6. The request must be submitted through the Procurement Policy Branch, Office of Procurement and Contracts, Reston (MS 205P).