FAR 3.807—Civil penalties.
Plain-English Summary
FAR 3.807 tells agencies to use the civil penalty procedures in the Program Fraud and Civil Remedies Act (PFCRA) when they are pursuing civil penalties for false, fictitious, or fraudulent claims or statements in the federal procurement context. This section does not create a new penalty scheme by itself; instead, it directs agencies to follow the PFCRA provisions at 31 U.S.C. 3803 (except subsection (c)), 3804 through 3808, and 3812, but only to the extent those statutory procedures are consistent with the rest of FAR Subpart 3.8. In practical terms, this means agencies must use the PFCRA’s administrative process for assessing and collecting civil penalties, including the required notice, hearing, decision, and collection framework, rather than improvising their own process. The section matters because it gives agencies a standardized, legally grounded path for addressing smaller-scale fraud matters that may not warrant criminal prosecution or a full False Claims Act case. For contractors, it signals that false statements or claims can trigger administrative civil penalties in addition to other remedies, and that the agency must follow a formal statutory process before penalties are imposed. For contracting officers and agency officials, it is a reminder that civil penalty actions are tightly procedural and must align with both the PFCRA and the FAR subpart.
Key Rules
Use PFCRA procedures
Agencies must impose and collect civil penalties under the Program Fraud and Civil Remedies Act. The FAR incorporates the PFCRA provisions listed in this section as the governing procedural authority.
Exclude subsection (c)
The reference to 31 U.S.C. 3803 expressly excludes subsection (c). That means agencies do not apply that particular PFCRA subsection when following this FAR provision.
Follow only consistent provisions
The incorporated PFCRA provisions apply only insofar as they are not inconsistent with FAR Subpart 3.8. If a statutory provision conflicts with the subpart, the FAR subpart controls for purposes of agency implementation.
Civil penalties are administrative
This section addresses civil penalties imposed and collected through an administrative process, not criminal sanctions. The agency must use the PFCRA’s formal procedures for notice, hearing, and decision-making.
Collection must follow statute
Agencies are not only authorized to assess penalties; they must also collect them according to the PFCRA collection provisions incorporated here. Collection actions must stay within the statutory framework.
Responsibilities
Agency
Impose and collect civil penalties using the PFCRA procedures incorporated by this section, and ensure those procedures are applied only to the extent they are consistent with FAR Subpart 3.8.
Contracting Officer
Recognize potential PFCRA matters and refer or support them through the agency’s prescribed civil penalty process rather than handling them informally or outside the statutory framework.
Agency Counsel / Investigative Officials
Evaluate whether the facts support a PFCRA civil penalty case, ensure the required procedural steps are followed, and confirm that the applicable PFCRA provisions are consistent with the FAR subpart before proceeding.
Contractor
Avoid submitting false, fictitious, or fraudulent claims or statements and respond appropriately if the agency initiates a PFCRA civil penalty action under the statutory process.
Practical Implications
Agencies cannot invent their own civil penalty process; they must use the PFCRA framework referenced here.
Contractors face administrative civil penalty exposure for false claims or statements, so documentation accuracy and internal controls matter.
Because only certain PFCRA provisions are incorporated, users must check both the statute and FAR Subpart 3.8 before taking action.
The exclusion of 31 U.S.C. 3803(c) means practitioners should not assume every PFCRA subsection applies automatically.
This section is procedural and cross-referential, so mistakes often come from overlooking the statutory details or applying inconsistent procedures.
Official Regulatory Text
Agencies shall impose and collect civil penalties pursuant to the provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C.3803 (except subsection(c)), 3804-3808, and 3812, insofar as the provisions therein are not inconsistent with the requirements of this subpart.