§8703 Contractor Responsibilities

Summary

Federal agencies must put a rule in every prime contract that makes the main contractor do two things. The contractor must have and use reasonable procedures to try to prevent and find violations of section 8702 in its own work and its direct business partners. The contractor must also fully cooperate with any federal agency that is investigating such a violation. The duty to cooperate applies even when the rule about procedures does not. The rule about procedures does not apply to prime contracts of $100,000 or less or to contracts for commercial products or services. If a prime contractor or a subcontractor reasonably believes a violation of section 8702 may have happened, they must quickly report it in writing to the contracting agency’s inspector general, to the agency head if there is no inspector general, or to the Attorney General. Reporting in this way is treated as favorable evidence of responsibility in suspension or debarment actions.