---
kind: "section"
citation: "48 C.F.R. § 3.1103"
title: "48"
number: "3.1103"
heading: "Procedures."
url: "https://uscodex.org/cfr/48/3.1103"
---

# §3.1103. Procedures.

- (a) By use of the contract clause at 52.203-16, as prescribed at 3.1106, the contracting officer shall require each contractor whose employees perform acquisition functions closely associated with inherently Government functions to—
  - (1) **Have procedures in place to screen covered employees for potential personal conflicts of interest by—**
    - (i) Obtaining and maintaining from each covered employee, when the employee is initially assigned to the task under the contract, a disclosure of interests that might be affected by the task to which the employee has been assigned, as follows:
      - (A) Financial interests of the covered employee, of close family members, or of other members of the covered employee's household.
      - (B) Other employment or financial relationships of the covered employee (including seeking or negotiating for prospective employment or business).
      - (C) Gifts, including travel; and
    - (ii) Requiring each covered employee to update the disclosure statement whenever the employee's personal or financial circumstances change in such a way that a new personal conflict of interest might occur because of the task the covered employee is performing.
  - (2) **For each covered employee—**
    - (i) Prevent personal conflicts of interest, including not assigning or allowing a covered employee to perform any task under the contract for which the Contractor has identified a personal conflict of interest for the employee that the Contractor or employee cannot satisfactorily prevent or mitigate in consultation with the contracting agency;
    - (ii) Prohibit use of non-public information accessed through performance of a Government contract for personal gain; and
    - (iii) Obtain a signed non-disclosure agreement to prohibit disclosure of non-public information accessed through performance of a Government contract.
  - (3) **Inform covered employees of their obligation—**
    - (i) To disclose and prevent personal conflicts of interest;
    - (ii) Not to use non-public information accessed through performance of a Government contract for personal gain; and
    - (iii) To avoid even the appearance of personal conflicts of interest;
  - (4) Maintain effective oversight to verify compliance with personal conflict-of-interest safeguards;
  - (5) Take appropriate disciplinary action in the case of covered employees who fail to comply with policies established pursuant to this section; and
  - (6) Report to the contracting officer any personal conflict-of-interest violation by a covered employee as soon as identified. This report shall include a description of the violation and the proposed actions to be taken by the contractor in response to the violation, with follow-up reports of corrective actions taken, as necessary.
- (b) If a contractor reports a personal conflict-of-interest violation by a covered employee to the contracting officer in accordance with paragraph (b)(6) of the clause at 52.203-16, Preventing Personal Conflicts of Interest, the contracting officer shall—
  - (1) Review the actions taken by the contractor;
  - (2) Determine whether any action taken by the contractor has resolved the violation satisfactorily; and
  - (3) If the contracting officer determines that the contractor has not resolved the violation satisfactorily, take any appropriate action in consultation with agency legal counsel.

## Notes

### Source

Source: 76 FR 68024, Nov. 2, 2011, unless otherwise noted.

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42108, Sept. 19, 1983, unless otherwise noted.