FAR 3.101-2—Solicitation and acceptance of gratuities by Government personnel.
Plain-English Summary
FAR 3.101-2 addresses the prohibition on Government personnel soliciting or accepting gratuities and other things of value from certain outside parties. It covers direct and indirect gifts, favors, entertainment, loans, and anything of monetary value, and it applies when the giver is seeking Government business with the employee’s agency, is engaged in activities regulated by the agency, or has interests that may be substantially affected by the employee’s official duties. The section also recognizes that agencies may authorize limited exceptions through their own regulations, so the rule is not absolute in every circumstance. In practice, this provision is meant to protect the integrity and impartiality of Federal decision-making, prevent real or perceived conflicts of interest, and preserve public confidence in procurement and regulatory actions. For contractors and other outside parties, it is a reminder that even small courtesies can create compliance problems if offered to the wrong Government employee or in the wrong context. For Government personnel, it establishes a strict baseline: do not ask for or take gifts or benefits from interested parties unless a specific agency exception clearly applies.
Key Rules
No solicitation or acceptance
Government employees may not solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from prohibited sources. The ban covers both asking for the item and receiving it, whether the benefit is obvious or routed through another person.
Applies to prohibited sources
The restriction applies to anyone who is seeking Government business with the employee’s agency, is regulated by the agency, or has interests that may be substantially affected by the employee’s official duties. This means the rule reaches contractors, offerors, regulated entities, and others with a meaningful stake in agency actions.
Indirect benefits are covered
Employees cannot evade the rule by having a gift or benefit provided through a third party or by accepting something that is effectively intended for them. The prohibition is broad enough to capture indirect transfers and disguised benefits.
Agency exceptions may exist
Limited exceptions can be authorized in agency regulations. Any exception must come from the applicable agency rules and must be read narrowly; employees should not assume a gift is allowed unless the agency has clearly permitted it.
Official duties create the nexus
The rule applies when the giver’s interests may be substantially affected by the employee’s performance or nonperformance of official duties. The key question is whether the employee’s Government role creates a meaningful connection to the giver’s business or regulatory interests.
Responsibilities
Government employee
Must not solicit or accept prohibited gifts, favors, entertainment, loans, or other things of value from covered sources. Must also avoid indirect acceptance and must check agency ethics rules before accepting any item that could fall within an exception.
Agency
Must issue and maintain any limited exceptions authorized under its regulations and ensure employees understand the gift restrictions. Agencies also must support ethics compliance through training, guidance, and enforcement.
Contractor or outside party
Must not offer benefits in a way that could induce or appear to induce improper influence over Government personnel. Should avoid providing gifts, meals, entertainment, loans, or other items of value to employees who are involved with the contractor’s business or regulatory matters.
Supervisors and ethics officials
Must help employees identify prohibited sources, interpret agency exceptions, and resolve close calls before a gift is accepted. They should reinforce reporting and disclosure procedures when questionable offers arise.
Practical Implications
This rule is broader than simple bribery; even small gifts or courtesies can be prohibited if they come from a covered source. Contractors should not assume that low-dollar items, holiday gifts, meals, or event tickets are automatically acceptable.
The biggest compliance risk is the appearance of influence over an employee who handles procurement, oversight, or regulatory decisions. If the person giving the item has business before the agency or is affected by the employee’s work, the safest course is usually not to offer anything of value.
Indirect gifts are a common pitfall. A contractor cannot avoid the rule by giving a benefit to a spouse, assistant, or intermediary if the benefit is really intended for the Government employee.
Agency-specific exceptions matter, but they are not universal. Before accepting anything that might be allowed in one agency, employees and contractors should confirm the applicable agency ethics rules.
When in doubt, the practical standard is to stop and ask ethics counsel or the contracting activity before giving or accepting anything that could be viewed as a gratuity.
Official Regulatory Text
As a rule, no Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who (a) has or is seeking to obtain Government business with the employee’s agency, (b) conducts activities that are regulated by the employee’s agency, or (c) has interests that may be substantially affected by the performance or nonperformance of the employee’s official duties. Certain limited exceptions are authorized in agency regulations.