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FAR and DFARS › FAR Part 3: Improper Business Practices and Personal Conflicts of Interest › Subpart 3.11

FAR 3.1106 Contract clause.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers when to include the clause at 52.203-16, Preventing Personal Conflicts of Interest, in solicitations and contracts. The clause applies to contracts above the simplified acquisition threshold that involve contractor employees performing acquisition functions closely associated with inherently governmental functions. It also explains how to limit the clause to only the relevant portion of a contract and when not to include it for self-employed individuals.

Applies to: Contracting officers and contractors with solicitations or contracts involving acquisition functions closely associated with inherently governmental functions

What it requires

  • Insert the clause at 52.203-16 in solicitations and contracts that exceed the simplified acquisition threshold and include a requirement for services by contractor employees involving acquisition functions closely associated with inherently governmental functions
  • If only a portion of the contract involves such functions, insert the clause but limit its applicability to that portion
  • Do not insert the clause in solicitations or contracts with a self-employed individual if the functions are performed entirely by that individual

Key terms: simplified acquisition threshold · 52.203-16 · Preventing Personal Conflicts of Interest · inherently governmental functions · self-employed individual

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Insert the clause at 52.203-16, Preventing Personal Conflicts of Interest, in solicitations and contracts that—

(1) Exceed the simplified acquisition threshold; and

(2) Include a requirement for services by contractor employee(s) that involve performance of acquisition functions closely associated with inherently governmental functions for, or on behalf of, a Federal agency or department.

(b) If only a portion of a contract is for the performance of acquisition functions closely associated with inherently governmental functions, then the contracting officer shall still insert the clause, but shall limit applicability of the clause to that portion of the contract that is for the performance of such services.

(c) Do not insert the clause in solicitations or contracts with a self-employed individual if the acquisition functions closely associated with inherently governmental functions are to be performed entirely by the self-employed individual, rather than an employee of the contractor.

Sections it refers to

  • 52.203-16 Preventing Personal Conflicts of Interest.

Sections that refer to it

← 3.1105 Violations.

Rule changes for FAR Part 3

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 3.1106 Contract clause · SpendQuery