Where does it say that it's considered contrary to public policy for contractors to pay a commission to someone that's contingent on that person getting the contractor a government contract?

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Business

Daniel Huerta

11 May, 14:51

Where does it say that it's considered contrary to public policy for contractors to pay a commission to someone that's contingent on that person getting the contractor a government contract?

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Kyla Koch · Answer 1

FAR 3.402

Explanation:

Contractors have long been regarded inconsistent with Public Policy for the payment of contingent payments for the application or procurement of government contracts because such agreements can lead to attempted or actual exercise of misleading power. This public policy was reasserted in 10 U. S. C. 2306 (b) and 41U. S. C. 3901, but other exceptions were allowed.

The statuses:

(a) Necessitate the contractor's guarantee for contingent fees in every negotiated contract;

(b) Allow contingent fee agreements between contractors and trustworthy employees or genuine agencies to be made, as an exception to the guarantee;

(c) Include that the government may cancel the contract without any penalty or subtract, for infringement or breach of a contractual promise by the contractor, the full amount of the contingent fee or any other compensation from that contract price.