---
kind: "section"
citation: "48 C.F.R. § 3.405"
title: "48"
number: "3.405"
heading: "Misrepresentations or violations of the Covenant Against Contingent Fees."
url: "https://uscodex.org/cfr/48/3.405"
---

# §3.405. Misrepresentations or violations of the Covenant Against Contingent Fees.

- (a) Government personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentation of a contingent fee arrangement, or other violation of the Covenant Against Contingent Fees shall report the matter promptly to the contracting officer or appropriate higher authority in accordance with agency procedures.
- (b) When there is specific evidence or other reasonable basis to suspect one or more of the violations in [paragraph (a)](#a) of this section, the chief of the contracting office shall review the facts and, if appropriate, take or direct one or more of the following, or other, actions:
  - (1) If before award, reject the bid or proposal.
  - (2) If after award, enforce the Government's right to annul the contract or to recover the fee.
  - (3) Initiate suspension or debarment action under [subpart 9.4](/cfr/48/subpart9.4.md).
  - (4) Refer suspected fraudulent or criminal matters to the Department of Justice, as prescribed in agency regulations.

## Notes

### Amendments

[48 FR 42108, Sept. 19, 1983. Redesignated at 61 FR 39188, July 26, 1996; 84 FR 19840, May 6, 2019]

### 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.

### Amendments

[48 FR 42108, Sept. 19, 1983. Redesignated at 61 FR 39188, July 26, 1996; 84 FR 19840, May 6, 2019]