FAR 3.202—Contract clause.
Plain-English Summary
FAR 3.202 tells contracting officers when they must include the Gratuities clause at FAR 52.203-3 in solicitations and contracts. The section is narrowly focused on one drafting requirement: inserting the clause when the acquisition value exceeds the simplified acquisition threshold, and recognizing two specific exceptions—personal services contracts and certain agreements between military departments or defense agencies and foreign governments that do not obligate Department of Defense appropriated funds. In practice, this rule matters because the Gratuities clause is a key anti-corruption safeguard that gives the Government a contractual basis to address improper gifts, favors, or other gratuities offered to influence procurement decisions. For contracting officers, the section is a checklist item at solicitation and award preparation; for contractors, it is a compliance trigger that can affect ethics training, internal controls, and employee conduct. The rule is simple, but missing the clause when required can create avoidable legal and administrative problems.
Key Rules
Insert the gratuities clause
The contracting officer must include FAR 52.203-3, Gratuities, in the solicitation and resulting contract when the acquisition exceeds the simplified acquisition threshold. This is a mandatory clause insertion, not a discretionary one.
Applies above the threshold
The requirement is triggered by contract value exceeding the simplified acquisition threshold. If the acquisition is at or below that threshold, this section does not require the clause under 3.202.
Personal services exception
Contracts for personal services are excluded from this clause-insertion requirement. Contracting officers should identify whether the acquisition is truly a personal services arrangement before deciding not to include the clause.
Certain foreign-government agreements excluded
The clause is not required for agreements between military departments or defense agencies and foreign governments when those agreements do not obligate any Department of Defense appropriated funds. This is a narrow exception tied to both the parties and the funding source.
Insert in both solicitation and contract
The rule directs the contracting officer to insert the clause in solicitations and contracts, meaning the requirement should be addressed at the solicitation stage and carried through into the award document.
Responsibilities
Contracting Officer
Determine whether the acquisition exceeds the simplified acquisition threshold and whether any exception applies. If the clause is required, insert FAR 52.203-3 in the solicitation and contract.
Contractor
Review the solicitation and contract for the Gratuities clause and ensure employees and agents understand and comply with the prohibition on improper gratuities and related conduct.
Agency/Acquisition Team
Support accurate acquisition planning and contract drafting by identifying contract type, value, and funding circumstances so the contracting officer can apply the clause correctly.
Practical Implications
This is a mandatory clause check for acquisitions above the simplified acquisition threshold, so omission can create a contract administration defect.
The two exceptions are narrow; do not assume the clause is unnecessary without confirming the contract is personal services or the foreign-government/DoD-funding exception applies.
Contractors should treat the clause as a compliance signal to reinforce ethics policies, gift restrictions, and employee training.
Contracting officers should verify the threshold calculation and document the basis for any exception to avoid later disputes or audit findings.
Because the clause is inserted in both the solicitation and contract, errors can occur at either stage; review both documents before release and award.
Official Regulatory Text
The contracting officer shall insert the clause at 52.203-3 , Gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the Department of Defense.