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

FAR 3.405 Misrepresentations or violations of the Covenant Against Contingent Fees.

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 Government personnel to report suspected improper influence, misrepresentation of a contingent fee arrangement, or other violations of the Covenant Against Contingent Fees. When there is specific evidence or a reasonable basis to suspect such a violation, the chief of the contracting office reviews the facts and may take actions such as rejecting a bid or proposal, annulling the contract or recovering the fee, initiating suspension or debarment, or referring suspected fraud to the Department of Justice.

Applies to: Government personnel and contracting office chiefs handling suspected violations of the Covenant Against Contingent Fees

What it requires

  • Government personnel who suspect or have evidence of a violation must report it promptly to the contracting officer or appropriate higher authority in accordance with agency procedures
  • The chief of the contracting office must review the facts when there is specific evidence or other reasonable basis to suspect a violation

Key terms: Covenant Against Contingent Fees · contingent fee arrangement · improper influence · suspension or debarment · annul the contract

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

The text

(a) Government personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentation of a contingent fee arrangement, or other violation of the Covenant Against Contingent Fees shall report the matter promptly to the contracting officer or appropriate higher authority in accordance with agency procedures.

(b) When there is specific evidence or other reasonable basis to suspect one or more of the violations in paragraph (a) of this section, the chief of the contracting office shall review the facts and, if appropriate, take or direct one or more of the following, or other, actions:

(1) If before award, reject the bid or proposal.

(2) If after award, enforce the Government's right to annul the contract or to recover the fee.

(3) Initiate suspension or debarment action under subpart 9.4.

(4) Refer suspected fraudulent or criminal matters to the Department of Justice, as prescribed in agency regulations.

Sections that refer to it

  • 3.406 Records.
  • 203.070 Reporting of violations and suspected violations.

← 3.404 Contract clause. · 3.406 Records. →

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 3.405 Misrepresentations or violations of the Covenant Against Contingent Fees · SpendQuery