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FAR and DFARS › FAR Part 3: Improper Business Practices and Personal Conflicts of Interest › Subpart 3.7

FAR 3.703 Authority.

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 explains the legal authority for the government to cancel or void contracts when a contractor or someone acting for the contractor has been convicted of bribery, conflict of interest, or similar offenses. It also requires agencies to consider rescinding a contract if they receive information that a contractor violated certain procurement integrity laws, either through a conviction or a determination based on a preponderance of the evidence. Contractors should be aware that such violations can lead to contract rescission.

Applies to: Government contractors and agencies involved in contracts with convictions or violations related to bribery, conflict of interest, or procurement integrity

What it requires

  • A Federal agency must consider rescission of a contract upon receiving information that a contractor or a person has violated 41 U.S.C. 2102, if there is a conviction or a determination based on a preponderance of the evidence.

Key terms: rescind · final conviction · bribery · conflict of interest · preponderance of the evidence

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

The text

(a) Section 1(e) of Pub. L. 87-849, 18 U.S.C. 218 (the Act), empowers the President or the heads of executive agencies acting under regulations prescribed by the President, to declare void and rescind contracts and other transactions enumerated in the Act, in relation to which there has been a final conviction for bribery, conflict of interest, or any other violation of Chapter 11 of Title 18 of the United States Code (18 U.S.C. 201-224). Executive Order 12448, November 4, 1983, delegates the President's authority under the Act to the heads of the executive agencies and military departments.

(b) 41 U.S.C. 2105(c) requires a Federal agency, upon receiving information that a contractor or a person has violated 41 U.S.C. 2102, to consider rescission of a contract with respect to which—

(1) The contractor or someone acting for the contractor has been convicted for an offense punishable under 41 U.S.C. 2105(a); or

(2) The head of the agency, or designee, has determined, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting such an offense.

← 3.702 Definition. · 3.704 Policy. →

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 3.703 Authority · SpendQuery