48 C.F.R. § 52.203-5

52.203-5 Covenant Against Contingent Fees.

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As prescribed in 3.404, insert the following clause:

Covenant Against Contingent Fees (MAY 2014)

(a) The Contractor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. For breach or violation of this warranty, the Government shall have the right to annul this contract without liability or to deduct from the contract price or consideration, or otherwise recover, the full amount of the contingent fee.

(b) Bona fide agency, as used in this clause, means an established commercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as being able to obtain any Government contract or contracts through improper influence.

Bona fide employee, as used in this clause, means a person, employed by a contractor and subject to the contractor's supervision and control as to time, place, and manner of performance, who neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds out as being able to obtain any Government contract or contracts through improper influence.

Contingent fee, as used in this clause, means any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing a Government contract.

Improper influence, as used in this clause, means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any basis other than the merits of the matter.

(End of clause) [48 FR 42478, Sept. 19, 1983, as amended at 56 FR 41730, Aug. 22, 1991; 61 FR 39189, July 26, 1996; 79 FR 24214, Apr. 29, 2014]

Notes of Decisions

Cited in 2 cases, 1999–2010 · leading case: Keefe Co. v. Americable Int'l, Inc., 169 F.3d 34 (D.C. Cir. 1999).

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Keefe Co. v. Americable Int'l, Inc., 169 F.3d 34 (D.C. Cir. 1999). “, 48 C.F.R. § 52.203-5 (1984), cited in Keefe’s Brief (K.”

Lowell Hous. Auth. v. PSC Int'l, Inc., 692 F. Supp. 2d 180 (D. Mass. 2010). “405, which incorporates the Covenant Against Contingent Fees contained in 48 C.F.R. 52.203-5. Both regulations prohibit enforcement of contracts entered into by a government agency with a party who has employed or retained a third-party to secure the government contract, in…”

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