FAR 52.203-7 — Anti-Kickback Procedures
Prohibits federal contractors and their employees from soliciting, offering, accepting, or paying kickbacks in connection with government contracts. Requires written policies and reporting.
When This Clause Applies
Required in all contracts exceeding the simplified acquisition threshold.
What This Means for Contractors
Contractors must maintain written anti-kickback policies, train employees, and report suspected kickback activity to the agency Inspector General. Violations can trigger civil penalties up to twice the kickback amount plus $11,000 per occurrence.
Common Pitfalls
- 1Treating gifts to government personnel as outside kickback rules — they often aren't
- 2Inadequate written policies that don't satisfy training requirements
- 3Failing to report suspected violations promptly
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