FAR 3.101-3—Agency regulations.
Plain-English Summary
FAR 3.101-3 explains how agency-level ethics and post-employment rules fit into the broader procurement integrity framework. It covers two main topics: agency “Standards of Conduct” required by Executive Order 11222 and 5 CFR part 735, and the separate financial disclosure and post-government employment restrictions implemented under Public Law 95-521 and 18 U.S.C. 207. In practice, this section tells readers that the FAR does not stand alone on ethics matters; agencies must issue their own conduct rules, including any authorized exceptions to FAR 3.101-2, and must also administer disclosure and former-employee restrictions through OPM and agency regulations. The purpose is to ensure federal employees and former employees are subject to clear, enforceable ethics standards that protect the integrity of the procurement process. For contractors, this section matters because agency ethics rules can affect communications, conflicts of interest, hiring of former officials, and the handling of sensitive procurement information. For contracting officers and agency personnel, it is a reminder that compliance requires looking beyond the FAR to the agency’s ethics and personnel regulations.
Key Rules
Agencies must issue conduct standards
Each agency is required to prescribe Standards of Conduct under Executive Order 11222 and 5 CFR 735. These standards are the agency-level ethics rules that supplement the FAR and govern employee behavior in procurement-related matters.
Agency exceptions may be authorized
Agency standards of conduct must include any agency-authorized exceptions to FAR 3.101-2. This means the agency may recognize limited exceptions, but only if they are authorized and stated in the agency’s own ethics rules.
Discipline must be addressed
Agency standards of conduct must also provide disciplinary measures for violations. The section makes clear that ethics rules are not merely advisory; agencies must have consequences for noncompliance.
Financial disclosure is separately governed
Employee financial disclosure requirements are not set in this FAR section itself. They are handled through OPM and agency regulations implementing the applicable ethics statutes and rules.
Former employee restrictions apply
Restrictions on private employment for former Government employees are governed by OPM and agency regulations implementing Public Law 95-521 and 18 U.S.C. 207. These post-employment rules operate alongside procurement ethics requirements and can affect hiring and communications after a person leaves federal service.
Responsibilities
Agencies
Issue and maintain Standards of Conduct under Executive Order 11222 and 5 CFR 735, including any authorized exceptions to FAR 3.101-2 and disciplinary measures for violations. Also implement financial disclosure and post-employment restrictions through OPM and agency regulations.
Contracting Officers
Follow the agency’s Standards of Conduct and ethics procedures, and ensure procurement actions are handled consistently with agency-specific exceptions, disclosure requirements, and post-employment restrictions. They should also refer ethics questions to the appropriate agency ethics officials.
Federal Employees
Comply with agency Standards of Conduct, meet applicable financial disclosure obligations, and observe restrictions on outside employment and post-government employment activities.
Former Government Employees
Observe the statutory and regulatory restrictions on private employment and post-employment contacts or representations under 18 U.S.C. 207 and related agency/OPM rules.
Agency Ethics Officials / OPM
Provide the governing ethics framework, issue or support implementing regulations, and administer disclosure and post-employment requirements as applicable.
Contractors and Prospective Employers
Be aware of agency ethics restrictions when interacting with federal personnel or hiring former Government employees, and avoid conduct that could violate post-employment or conflict-of-interest rules.
Practical Implications
Do not assume the FAR is the only source of ethics rules; agency supplements and ethics regulations may impose additional requirements or procedures.
When a procurement ethics issue arises, check the agency’s Standards of Conduct for any authorized exception to FAR 3.101-2 before relying on general FAR language.
Hiring former federal employees can create compliance risk if post-employment restrictions are ignored; review 18 U.S.C. 207 and agency guidance before assigning work or communications.
Financial disclosure obligations can affect who may participate in procurement decisions, source selections, or sensitive negotiations, so agencies must track and enforce them carefully.
A common pitfall is treating ethics rules as optional guidance; this section makes clear that agencies must have enforceable standards and disciplinary measures in place.
Official Regulatory Text
(a) Agencies are required by Executive Order 11222 of May 8,1965, and 5 CFR 735 to prescribe "Standards of Conduct." These agency standards contain- (1) Agency-authorized exceptions to 3.101-2 ; and (2) Disciplinary measures for persons violating the standards of conduct. (b) Requirements for employee financial disclosure and restrictions on private employment for former Government employees are in Office of Personnel Management and agency regulations implementing Public Law 95-521, which amended 18 U.S.C. 207 .