FAR 3.702—Definition.
Plain-English Summary
FAR 3.702 provides a single, narrow definition used in the FAR’s anti-kickback and related integrity provisions: what counts as a “final conviction.” It explains that a conviction can arise from a verdict or a plea, and it expressly includes a plea of nolo contendere, so long as a sentence has been imposed. The purpose of the definition is to remove ambiguity about when a criminal case has reached the level of finality needed to trigger FAR consequences, such as remedies, reporting, or other actions tied to a conviction. In practice, this matters because contractors, subcontractors, and contracting officials need a clear point at which a criminal disposition is treated as a conviction under the FAR, even if the case was resolved without a traditional guilty plea. The definition is important for compliance, enforcement, and recordkeeping because it determines when the government may rely on the conviction status for contractual or administrative actions.
Key Rules
Verdict or plea qualifies
A conviction is covered whether it results from a jury or bench verdict or from a plea. The form of the criminal disposition does not matter as long as it results in a conviction.
Nolo contendere included
A plea of nolo contendere is treated the same as other pleas for this definition. Even though it is not an express admission of guilt, it still counts if the court imposes sentence.
Sentence must be imposed
The conviction is not final for this FAR definition until a sentence has been imposed. Without sentencing, the disposition does not meet the definition of a final conviction.
Responsibilities
Contractors
Track criminal case outcomes involving the company and relevant personnel, and recognize that verdicts, guilty pleas, and nolo contendere pleas become final convictions once sentence is imposed. Use that status to assess FAR compliance obligations and any required disclosures or internal actions.
Subcontractors
Understand that criminal dispositions meeting this definition may affect eligibility, flowdown compliance, and prime contractor oversight. Report relevant conviction status to primes when contract terms or compliance obligations require it.
Contracting Officers
Apply the FAR definition consistently when evaluating whether a criminal matter has reached the point that triggers contractual, administrative, or enforcement consequences. Do not require a formal label beyond the elements stated in the definition.
Agencies
Use this definition uniformly across procurement and integrity-related actions that depend on a final conviction. Ensure internal guidance and enforcement decisions align with the FAR’s specific timing and scope.
Practical Implications
The key timing issue is sentencing: a verdict or plea alone is not enough under this definition until the court imposes sentence.
A nolo contendere plea can still have FAR consequences, so contractors should not assume it avoids compliance or enforcement effects.
This definition is intentionally broad and functional, so parties should focus on the criminal case posture rather than informal understandings about whether the matter is “really” a conviction.
Misreading the term can lead to late reporting, missed compliance actions, or premature government action before the conviction is final under the FAR.
Contractors should maintain internal procedures to monitor criminal proceedings and promptly evaluate whether a sentence has been imposed, since that is the trigger point for this definition.
Official Regulatory Text
Final conviction means a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has been imposed.