C.F.R. » Title 48 » CHAPTER 1—FEDERAL ACQUISITION REGULATION › SUBCHAPTER H—CLAUSES AND FORMS › PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES › Subpart 52.2—Text of Provisions and Clauses

48 C.F.R. § 52.203-3

52.203-3 Gratuities.

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As prescribed in 3.202, insert the following clause:

Gratuities (APR 1984)

(a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative—

(1) Offered or gave a gratuity (e.g., an entertainment or gift) to an officer, official, or employee of the Government; and

(2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract.

(b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction.

(c) If this contract is terminated under paragraph (a) above, the Government is entitled—

(1) To pursue the same remedies as in a breach of the contract; and

(2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This subparagraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.)

(d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.

(End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 61 FR 39200, July 26, 1996]
Notes of Decisions
Cited in 3 cases, 1991–2014 · leading case: United States ex rel. Kraxberger v. Kansas City Power & Light Co.
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United States ex rel. Kraxberger v. Kansas City Power & Light Co. (2014) ca8 “203-3, 48 C.F.R. § 52.203-3 , Gratuities The right of the Contractor to proceed may be terminated by written notice if .”
Francis E. Heydt Company v. United States of America, and Richard Cheney, Secretary of Defense, United States Department (1991) ca10 · cites it 2× “203-3, 48 C.F.R. § 52.203-3 . 4 A week later, the *674 Company sent a demand for payment of the last two invoices totalling approximately $175,000.”
United States ex rel., etc. v. Kansas City Power & Light Co. (2014) ca8 “203-3, 48 C.F.R. § 52.203-3 , Gratuities The right of the Contractor to proceed may be terminated by written notice if .”
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