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Navy Marine Corps Acquisition Regulation Supplement


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PART 5203 IMPROPER BUSINESS PRACTICES AND  PERSONAL CONFLICTS OF INTEREST

 

SUBPART 5203.1 SAFEGUARDS

 

5203.101 Standards of conduct.

 

5203.101-1 General.

(a) DON contracting activities, purchasing  offices and contract administration offices (CAOs) are responsible for ensuring that a  single individual performs only one of the following functions:

(1) initiation of the requirement;

(2) award of contract or placement of order;  and

(3) receipt, inspection, and acceptance of  supplies or services.

(b) If circumstances preclude an individual  from performing a single function, as a minimum, the individual responsible for the  award of a contract or placement of an order should not perform the receipt,  inspection and acceptance function.

 

5203.104 Procurement integrity.

 

5203.104-7 Violations or possible  violations.

(a)(1) The CCO is designated, without power of  redelegation, as the individual to receive the contracting officer s report and  documentation concluding that there is no impact on the procurement.

(f) Submit agency head notifications to  DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject [Activity Name] DFARS  203.104-7 - Contract Award Urgent and Compelling Possible Procurement Integrity Act  Violation. Verify receipt by the agency head before authorizing award of the contract  or execution of the contract modification.

 

SUBPART 5203.2--CONTRACTOR GRATUITIES TO  GOVERNMENT PERSONNEL

 

5203.203 Reporting suspected violations  of the Gratuities clause.

(a) Within two working days after receiving  information indicating that a gratuity (including, but not limited to, entertainment or  a gift) may have been offered or given by a contractor or a contractor s agent or  representative to any officer, official, or employee of the Government to obtain a DON  contract or favorable treatment in the awarding, amending, or making of determinations  concerning the performance of a DON contract, a DON officer, official, or employee must  inform the Assistant General Counsel (Acquisition Integrity) (AGC (AI)) and the  contracting officer having cognizance over the contract of the potential infraction,  unless the contracting officer is suspected to be a party to the gifted or offered  gratuity. In that case, the HCA should be informed instead of the contracting officer.  Information provided to the AGC (AI) and the cognizant contracting officer or HCA is  exempt from Management Information Collection (MIC) reporting requirements as per SECNAV  M-5214.1 (Dec. 2005), Part IV, 7.n. & Part V, 5.p. Submit the information in the  format prescribed at Annex 10.

(b) The contracting officer having cognizance  over the contract implicated in the alleged Gratuities clause violation (or the HCA, if  the contracting officer is alleged to be a party to the gifted or offered gratuity)  shall:

(i) Within five working days after receiving  information regarding an alleged violation of the Gratuities clause, provide a written  report to the AGC (AI) (exempt from (MIC) reporting requirements as per SECNAV M-5214.1  (Dec. 2005), Part IV, 7.n. & Part V, 5.p), including:

(A) The name and address of the contractor;

(B) A summary of any information concerning the  suspected violation known to the person making the report, such as the nature and amount  of the alleged gratuity and the person to whom it was allegedly offered or given;

(C) The contract number, date, estimated day of  completion of performance, a general description of supplies or services procured,  dollar amount, status of performance and payment, urgency of requirements, availability  of the supplies or services from other sources, and the name of the contracting officer;  and,

(D) Copies of any documents available concerning  the suspected violation.

(ii) Cooperate and coordinate with the AGC (AI)  and the DON s Acquisition Integrity Office (AIO) in the investigation and treatment of  an alleged violation, including, but not limited to, responding promptly to requests for  information.

(iii) Advise AIO of the existence and status of  any administrative investigation concerning the alleged violation of which the  contracting officer is aware, with an estimated date upon which the report of  investigation will be completed, if known. If requested, a copy of the Report of  Investigation must be provided to AIO as soon as practicable.

(iv) Comply fully with DFARS Subpart 203.070  Reporting of violations and suspected violations.

(c) AIO shall refer the alleged violation to the  Naval Criminal Investigative Service for investigation and other appropriate action  pursuant to SECNAVINST 5430.107, dated 28 Dec 2005, and 5430.92B, dated 30 Dec 2005, or  successor instructions or regulations. AIO may also refer the alleged violation to the  Naval Audit Service pursuant to SECNAVINST 5430.92B, dated 30 Dec 2005, or successor  instruction or regulation.

(d) The reporting procedure set forth in this  Subpart 5203.203 is not exclusive. The AGC (AI) may commence a proceeding pursuant to  Subpart 5203.204 concerning a suspected violation of the Gratuities clause involving any  DON contract regardless of the source of the information.

 

5203.204 Treatment of  violations.

(a)(i) Authority to provide notices, conduct  hearings, and make findings of fact and conclusions of law concerning alleged violations  of the Gratuities clause, including whether a violation of the Gratuities clause has  occurred, has been delegated to the AGC(AI), without power of redelegation.

(ii) Notification.

(A) If the AGC (AI) determines that there is  credible evidence that a violation of the Gratuities clause has occurred, he or she may  commence a proceeding pursuant to this Subpart by providing written notice to the  contractor alleged to be liable for the purported violation.

(B) The AGC (AI) shall ensure that the notice to  the contractor is delivered by hand or sent by registered or certified mail, or another,  similar commercial means. The contractor has 30 calendar days from receipt of notice to  request a hearing.

(b) Hearing. The AGC (AI) shall schedule any  hearing for a date not later than 15 calendar days after the AGC (AI) s receipt of the  contractor s request, unless the contractor requests a later date not to be more than 30  calendar days after the AGC (AI) s receipt of the hearing request.

(c) If the AGC (AI) has determined that a  violation has occurred, authority to determine whether to terminate the contractor s  right to proceed under the contract, and, if so, whether to assess exemplary damages and  in what amount, has been delegated to DASN(AP). The AGC (AI) shall make recommendations  to DASN(AP) with respect to terminating the contractor s right to proceed under the  contract and assessing exemplary damages.

 

SUBPART 5203.6 CONTRACTS WITH GOVERNMENT  EMPLOYEES OR ORGANIZATIONS OWNED OR CONTROLLED BY THEM

 

5203.602 Exceptions.

The HCA, without power of redesignation, may  authorize exceptions.

 

SUBPART 5203.8 LIMITATIONS ON THE PAYMENT  OF FUNDS TO INFLUENCE FEDERAL TRANSACTIONS

 

5203.806 Processing suspected  violations.

Submit Lobbying Disclosure Act Violation  reports to DASN(AP) by email at RDAJ&As.fct@navy.mil with the subject [Activity  Name] DFARS PGI 203.8 Lobbying Disclosure Act Violation Report."

 

SUBPART 5203.9 WHISTLEBLOWER PROTECTIONS  FOR CONTRACTOR EMPLOYEES

 

5203.903 Policy.

(5) When notified of a complaint of reprisal  described in DFARS 5203.903(1), the contracting officer shall notify the Office of  General Counsel by email at aio@navy.mil with a courtesy copy to DASN(AP) by email at Policy@navy.mil with the subject DFARS 203.903 Notification of a Complaint of Reprisal.

 

SUBPART 5203.10 CONTRACTOR CODE OF  BUSINESS ETHICS AND CONDUCT

 

5203.1003 Requirements.

(b) Notification  of possible contractor violation. In addition to the actions required by FAR  3.1003(b), the contracting officer shall provide a copy of the notification, within 10  days of receipt, to the Acquisition Integrity Office by email at aio@navy.mil with the  subject FAR 3.1003 Possible Contractor Ethics Violation.

 

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