FAR 3.700—Scope of subpart.
Plain-English Summary
FAR 3.700 defines the scope of Subpart 3.7, which establishes Governmentwide policies and procedures for the discretionary remedy of declaring certain contracts void and rescinding them when serious procurement misconduct has occurred. The section covers two triggering situations: a final conviction for bribery, conflict of interest, or improper disclosure/receipt of contractor bid or proposal information or source selection information in exchange for value or to gain a competitive advantage; and an agency head determination that such information was disclosed or received for value or to gain a competitive advantage. It also makes clear that this subpart is limited to that specific void-and-rescind authority and does not govern other Government remedies, including common law avoidance, rescission, or cancellation. In practice, this means the subpart is a targeted enforcement tool for the most serious integrity violations in Federal procurement, not a general contract-termination or dispute-resolution rule. Contracting officials must therefore distinguish between the special procedures in this subpart and other legal remedies that may be available under statute, regulation, or common law.
Key Rules
Governmentwide voiding authority
This subpart sets uniform Governmentwide policies and procedures for exercising discretionary authority to declare contracts void and rescind them. The authority is not automatic; it is a special remedy used only in the circumstances identified in the subpart.
Final conviction trigger
One basis for using this remedy is a final conviction for bribery, conflict of interest, or improper disclosure or receipt of contractor bid or proposal information or source selection information, when the conduct was tied to obtaining value or a competitive advantage in a Federal procurement.
Agency head determination trigger
The remedy may also be used when the agency head determines that bid or proposal information or source selection information was disclosed or received in exchange for value or to gain a competitive advantage. This allows action even without a final conviction, if the required determination is made.
Limited to specified misconduct
The section applies only to the listed procurement integrity violations and similar misconduct connected to Federal agency procurement contracts. It does not create a general authority to void contracts for any wrongdoing.
Other remedies remain available
This subpart does not control or limit other remedies the Government may have, including common law avoidance, rescission, or cancellation. Those remedies exist separately and may be pursued under other legal authorities.
Responsibilities
Agency Head
May make the determination that contractor bid or proposal information or source selection information was disclosed or received in exchange for value or to obtain or give a competitive advantage, which can support use of the void-and-rescind remedy.
Contracting Officer
Must recognize when the facts may fall within this subpart and coordinate with legal and agency leadership on whether the discretionary voiding and rescission authority may be available.
Agency Legal Counsel
Should assess whether the misconduct meets the regulatory trigger, whether a final conviction or agency head determination exists, and whether other remedies are more appropriate or also available.
Contractor
Must avoid bribery, conflicts of interest, and improper disclosure or receipt of procurement-sensitive information, because such conduct can expose contracts to being declared void and rescinded.
Governmentwide Acquisition Community
Must apply the subpart consistently across agencies as a Governmentwide policy framework for this narrow remedy.
Practical Implications
This section is a threshold provision: it tells you when Subpart 3.7 can be used, not how every case must be resolved.
A common pitfall is assuming any procurement misconduct automatically allows voiding a contract; the section is limited to the specific conviction or agency-head-determination triggers.
Another pitfall is treating this subpart as the exclusive remedy. The Government may still have other legal options, including common law remedies, depending on the facts.
Contracting officers should immediately involve counsel when bribery, conflict-of-interest, or procurement-information misuse is suspected, because the remedy is discretionary and fact-sensitive.
Contractors should understand that improper handling of bid, proposal, or source selection information can jeopardize an award even after contract formation, especially where the conduct is tied to competitive advantage or value exchange.
Official Regulatory Text
(a) This subpart prescribes Governmentwide policies and procedures for exercising discretionary authority to declare void and rescind contracts in relation to which- (1) There has been a final conviction for bribery, conflict of interest, disclosure or receipt of contractor bid or proposal information or source selection information in exchange for a thing of value or to give anyone a competitive advantage in the award of a Federal agency procurement contract, or similar misconduct; or (2) There has been an agency head determination that contractor bid or proposal information or source selection information has been disclosed or received in exchange for a thing of value, or for the purpose of obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract. (b) This subpart does not prescribe policies or procedures for, or govern the exercise of, any other remedy available to the Government with respect to such contracts, including but not limited to, the common law right of avoidance, rescission, or cancellation.