Difference between revisions of "FAR 52.203-5 - Covenant Against Contingent Fees"
| Line 7: | Line 7: | ||
|CCSubject=Contingent Fees | |CCSubject=Contingent Fees | ||
|ProvisionClauseDescription=- | |ProvisionClauseDescription=- | ||
| + | |FARClauseOverview=== 52.203-5 Covenant Against Contingent Fees <ref>As prescribed in 3.404</ref>== | ||
| + | |||
| + | '''COVENANT AGAINST CONTINGENT FEES (APR 1984)'''(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, in its discretion, to deduct from the contract price or consideration, or otherwise recover, the full amount of the contingent fee. | ||
| + | |||
| + | == Definitions == | ||
| + | (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. | ||
| + | |||
| + | == Related Topics == | ||
| + | [[Selling Costs]] | ||
| + | |||
| + | ==References== | ||
| + | <References/> | ||
| + | |||
| + | |ImportantNotesRequirements=[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | ||
| + | [[Category:FAR 3 - Improper Business Practices and Personal Conflicts of Interest]] | ||
| + | |||
|IncorporatedbyReference=Yes | |IncorporatedbyReference=Yes | ||
|UniformContractFormat=I | |UniformContractFormat=I | ||
Revision as of 09:31, 3 June 2014
Prescribed in 3.404 | ||
| Effective Date: | 4 January 1984 | |
| Clause or Provision: | Clause | |
| Provision or Clause Number: | 52.203-5 - Covenant Against Contingent Fees | |
| Principle Type And/Or Purpose of Contract: | ||
| Required: | Fixed Price Service; Cost Reimbursement Research and Development; Fixed Price Research and Development; Cost Reimbursement Supply; Fixed Price Supply; Cost Reimbursement Service; Fixed Price Construction; Cost Reimbursement Construction; Time and Materials/Labor Hour; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition, or Removal of Improvements; Architect-Engineering; Facilities; Indefinite Delivery; Transportation; Utility Services; Commercial Items; | |
| Applicable: | ||
| Optional: | Simplified Acquisition Procedures; | |
| Subject: | Contingent Fees | |
| ProcurementType: | ||
| Contract Threshold: | ||
| Prescription Overview: | ||
| Clause Overview: |
52.203-5 Covenant Against Contingent Fees [1]COVENANT AGAINST CONTINGENT FEES (APR 1984)(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, in its discretion, to deduct from the contract price or consideration, or otherwise recover, the full amount of the contingent fee. Definitions(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. Related TopicsReferences
| |
| Important Notes/Requirements: | ||
| Subcontract Threshold: | ||
| Incorporated by Reference: | Yes | |
| Uniform Contract Format: | I | |
| Editor: | Marshall | |
Personal notes.
