FAR 52.203-5 - Covenant Against Contingent Fees

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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:	Utility Services; Fixed Price, Supply; Cost Reimbursement, Supply; Fixed Price, R&D; Cost Reimbursement, R&D; Fixed Price, Service; Cost Reimbursement, Service; Fixed Price, Construction; Cost Reimbursement, Construction; Time & Material/Labor Hour; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition or Removal of Improvements; Architect-Engineering; Facilities; Indefinite Delivery; Transportation; Utility Services
Applicable:
Optional:	Simplified Acquisition Procedures (Excludes Micro-Purchase)
Subject:	Contingent Fees
ProcurementType:	Sole Source
Contract Threshold:	>150,000
Prescription Overview:	The contracting officer shall insert the clause at 52.203-5, Covenant Against Contingent Fees, in all solicitations and contracts exceeding the simplified acquisition threshold, other than those for commercial items (see Parts 2 and 12).
Clause Overview:	52.203-5 Covenant Against Contingent Fees 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: (1) established commercial or selling agency, (2) maintained by a contractor for the purpose of securing business, (3) 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
Important Notes/Requirements:	Required for all contracts except commercial contracts and simplified acquisition procedures contracts.
Subcontract Threshold:	>150,000
Incorporated by Reference:	Yes
Uniform Contract Format:	I
Editor:	Marshall

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Personal notes.