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FAR and DFARS › FAR Part 3: Improper Business Practices and Personal Conflicts of Interest › Subpart 3.4

FAR 3.401 Definitions.

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 defines key terms used in the FAR subpart on gratuities, kickbacks, and contingent fees. It explains what counts as a bona fide agency or employee, a contingent fee, and improper influence. Contractors need these definitions to understand what conduct and fee arrangements are restricted elsewhere in the subpart.

Applies to: Contractors and their agencies or employees involved in obtaining Government contracts

Key terms: Bona fide agency · Bona fide employee · Contingent fee · Improper influence

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

The text

As used in this subpart—

Bona fide agency, means an established commercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as being able to obtain any Government contract or contracts through improper influence.

Bona fide employee, means a person, employed by a contractor and subject to the contractor's supervision and control as to time, place, and manner of performance, who neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds out as being able to obtain any Government contract or contracts through improper influence.

Contingent fee, means any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing a Government contract.

Improper influence, means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any basis other than the merits of the matter.

Sections that refer to it

  • 31.205-22 Lobbying and political activity costs.

← 3.400 Scope of subpart. · 3.402 Statutory requirements. →

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 3.401 Definitions · SpendQuery