samsearch
    Platform
    01InfluenceShape the requirement before it's on your competitor's radar.
    Signal
    Recompete window opens in 42 days
    Facilities maintenance IDIQ$8.4M
    Forecast
    Agency spend up 18% next FY
    DoD facilitiesQ3 window
    02CaptureFind and qualify the work across every market.
    Federal91%
    Network engineering support — GSA MAS
    GSA541512
    SLED88%
    Custodial services — Fairfax County Public Schools
    K-12561720
    DIBBS79%
    Aircraft hydraulic fitting — DLA Aviation
    DLANSN 5330
    03AnalyzeExtract requirements and build the compliance matrix.
    Compliance matrix
    L.2.1Technical approachVol I
    L.3.4Staffing planVol I
    M.1Past performanceEvaluated
    SOW breakdown
    Requirements extracted38
    Mapped to Section L/M38
    Every extractionCited
    Ask Sammy
    “Do we meet the small business set-aside?”
    04ManageRun the pursuit through to award.
    Pipeline
    QualifyFacilities support · USACE
    CaptureComms upgrade · DLA
    ProposalShipyard dredging · NAVSEA
    PriyaAlex
    This week
    Submit past performance refsThu
    Confirm subK teamingFri
    Upload SF 33Mon
    05RespondDraft and submit your response.
    Drafting · Volume I
    247 words
    RFI response
    CompanyAcme Robotics LLC
    UEIJK4M8…
    Capability narrativeDrafted
    06FinanceGet paid faster on what you win.
    Capital available
    $2.4M against your award
    Facilities maintenance IDIQAwarded
    Partner matched
    LenderFederal Capital Partners
    Draw available$2.4M
    UnderwritingCleared
    The platform
    Influence
    Capture
    Analyze
    Manage
    Respond
    Finance
    One pipeline, six stages, start to award.
    See the whole platform
    Solutions
    By industry
    Tech & softwareSoftware and SaaS companies entering GovCon.Defense contractorsPrimes and subs in the defense industrial base.ConstructionBuilders bidding federal, state, and local work.CybersecuritySecurity vendors pursuing federal mandates.
    By team
    Capture managers & BDPipeline, qualification, and win strategy.Proposal teamsCompliance matrices and proposal drafting.Subcontractors & primesTeaming, subcontracting, and partner fit.
    By company size
    Small businessesSet-aside and small business contractors.EnterpriseLarge contractors running multiple pursuits.ConsultantsAdvisors and capture consultants.
    Browse all industries
    CustomersPricing
    ResourcesNew
    Learn
    AcademyCourses, guides, and playbooks.WebinarsLive sessions and recordings.DocsProduct documentation and setup guides.Implementation planOperational rollout guidance.
    Tools & data
    Free GovCon toolsCalculators, lookups, and more.Gov ExploreContracts, agencies, and NAICS codes.GovCon eventsConferences, training, and set-aside events.
    Latest blogIntroducing the New SamSearch: The Operating System for Government ContractingSamSearch has a new brand, a new site, and a new way of explaining what the platform actually does — the operating system for government contracting, organized around six stages instead of a single search box. Here's what changed and why.Read the post →
    All resources and tools
    Sign inRequest a demo
    Home/FAR Navigator/52/52.2/52.203/52.203-3

    FAR Navigator

    • 1Federal Acquisition Regulations System
    • 2Definitions of Words and Terms
    • 3Improper Business Practices and Personal Conflicts of Interest
    • 4Administrative and Information Matters
    • 5Publicizing Contract Actions
    • 6Competition Requirements
    • 7Acquisition Planning
    • 8Required Sources of Supplies and Services
    • 9Contractor Qualifications
    • 10Market Research
    • 11Describing Agency Needs
    • 12Acquisition of Commercial Products and Commercial Services
    • 13Simplified Acquisition Procedures
    • 14Sealed Bidding
    • 15Contracting by Negotiation
    • 16Types of Contracts
    • 17Special Contracting Methods
    • 18Emergency Acquisitions
    • 19Small Business Programs
    • 22Application of Labor Laws to Government Acquisitions
    • 23Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
    • 24Protection of Privacy and Freedom of Information
    • 25Foreign Acquisition
    • 26Other Socioeconomic Programs
    • 27Patents, Data, and Copyrights
    • 28Bonds and Insurance
    • 29Taxes
    • 30Cost Accounting Standards Administration
    • 31Contract Cost Principles and Procedures
    • 32Contract Financing
    • 33Protests, Disputes, and Appeals
    • 34Major System Acquisition
    • 35Research and Development Contracting
    • 36Construction and Architect-Engineer Contracts
    • 37Service Contracting
    • 38Federal Supply Schedule Contracting
    • 39Acquisition of Information Technology
    • 40Reserved
    • 41Acquisition of Utility Services
    • 42Contract Administration and Audit Services
    • 43Contract Modifications
    • 44Subcontracting Policies and Procedures
    • 45Government Property
    • 46Quality Assurance
    • 47Transportation
    • 48Value Engineering
    • 49Termination of Contracts
    • 50Extraordinary Contractual Actions and the Safety Act
    • 51Use of Government Sources by Contractors
    • 52Solicitation Provisions and Contract Clauses
      • 52.000Scope of part.
      • 52.1Subpart 52.1
      • 52.2Subpart 52.2
        • 52.200Scope of subpart.
        • 52.201[Reserved]
        • 52.202[Reserved]
        • 52.203[Reserved]
          • 52.203-1[Reserved]
          • 52.203-2Certificate of Independent Price Determination.
          • 52.203-3Gratuities.
          • 52.203-4[Reserved]
          • 52.203-5Covenant Against Contingent Fees.
          • 52.203-6Restrictions on Subcontractor Sales to the Government.
          • 52.203-7Anti-Kickback Procedures.
          • 52.203-8Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity.
          • 52.203-9[Reserved]
          • 52.203-10Price or Fee Adjustment for Illegal or Improper Activity.
          • 52.203-11Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions.
          • 52.203-12Limitation on Payments to Influence Certain Federal Transactions.
          • 52.203-13Contractor Code of Business Ethics and Conduct.
          • 52.203-14Display of Hotline Poster(s).
          • 52.203-15Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009.
          • 52.203-16Preventing Personal Conflicts of Interest.
          • 52.203-17Contractor Employee Whistleblower Rights.
          • 52.203-18Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements or Statements-Representation.
          • 52.203-19Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements.
        • 52.204[Reserved]
        • 52.205[Reserved]
        • 52.206[Reserved]
        • 52.207[Reserved]
        • 52.208[Reserved]
        • 52.209[Reserved]
        • 52.210[Reserved]
        • 52.211[Reserved]
        • 52.212[Reserved]
        • 52.213[Reserved]
        • 52.214[Reserved]
        • 52.215[Reserved]
        • 52.216[Reserved]
        • 52.217[Reserved]
        • 52.218[Reserved]
        • 52.219[Reserved]
        • 52.220[Reserved]
        • 52.221[Reserved]
        • 52.222[Reserved]
        • 52.223[Reserved]
        • 52.224[Reserved]
        • 52.225[Reserved]
        • 52.226[Reserved]
        • 52.227[Reserved]
        • 52.228[Reserved]
        • 52.229[Reserved]
        • 52.230[Reserved]
        • 52.231[Reserved]
        • 52.232[Reserved]
        • 52.233[Reserved]
        • 52.234[Reserved]
        • 52.235[Reserved]
        • 52.236[Reserved]
        • 52.237[Reserved]
        • 52.238[Reserved]
        • 52.239[Reserved]
        • 52.240[Reserved]
        • 52.241[Reserved]
        • 52.242[Reserved]
        • 52.243[Reserved]
        • 52.244[Reserved]
        • 52.245[Reserved]
        • 52.246[Reserved]
        • 52.247[Reserved]
        • 52.248[Reserved]
        • 52.249[Reserved]
        • 52.250[Reserved]
        • 52.251[Reserved]
        • 52.252[Reserved]
        • 52.253[Reserved]
      • 52.3Subpart 52.3
    • 53Forms
    Up to 52.203
    subsectionUpdated April 16, 2026

    FAR 52.203-3—Gratuities.

    Plain-English Summary

    FAR 52.203-3, Gratuities, is an anti-corruption contract clause that protects the integrity of federal procurement by prohibiting contractors from using gifts, entertainment, or other gratuities to influence government personnel. The clause covers the contractor, its agents, and other representatives; the conduct at issue; the required intent to obtain a contract or favorable treatment; the government’s enforcement process; judicial review of the underlying facts; and the government’s remedies if the clause is violated. It allows the Government to terminate the contractor’s right to proceed after notice and hearing if the agency head or designee finds a prohibited gratuity was offered or given with improper intent. It also authorizes the Government to pursue breach-type remedies and, in Department of Defense-funded contracts, exemplary damages tied to the cost of the gratuity. Finally, it makes clear that these remedies are cumulative, not exclusive, so other legal and contractual remedies may still apply. In practice, this clause puts contractors on notice that even relatively small gifts or hospitality can create serious contract consequences if they are intended to secure award or favorable treatment.

    Key Rules

    No gratuities to officials

    The contractor, its agent, or another representative may not offer or give a gratuity—such as a gift or entertainment—to a Government officer, official, or employee when the purpose is to obtain a contract or favorable treatment under a contract.

    Improper intent is required

    The clause is triggered only when the gratuity is given with the intent to influence procurement outcomes or contract administration. Innocent social contact is not the focus; the prohibited conduct is a gift or benefit tied to an improper purpose.

    Termination after notice and hearing

    If the agency head or designee determines, after notice and hearing, that a prohibited gratuity was offered or given with the required intent, the Government may terminate the contractor’s right to proceed by written notice.

    Court review is available

    The facts supporting the agency’s determination may be reviewed by a court with lawful jurisdiction. This provides judicial oversight of the administrative finding.

    Government may seek breach remedies

    If the contract is terminated under the clause, the Government may pursue the same remedies it would have for breach of contract, in addition to any other remedies available under law.

    DoD contracts may face exemplary damages

    For contracts funded with Department of Defense appropriations, the Government may also recover exemplary damages of not less than 3 times and not more than 10 times the contractor’s cost of giving the gratuities, as determined by the agency head or designee.

    Remedies are cumulative

    The clause expressly states that the Government’s rights and remedies are not exclusive. Other statutory, regulatory, or contractual remedies may still be available.

    Responsibilities

    Contractor

    Must ensure that neither the company nor its agents or representatives offer or give gifts, entertainment, or other gratuities to Government personnel for the purpose of obtaining a contract or favorable treatment. Must maintain internal controls, training, and oversight to prevent prohibited conduct and respond promptly if allegations arise.

    Contractor's agents and representatives

    Must not provide gratuities to Government officials or employees with the intent to influence procurement or contract administration. Their conduct can be attributed to the contractor for purposes of this clause.

    Agency Head or Designee

    Must provide notice and a hearing before making the determination that a prohibited gratuity was offered or given with improper intent. If the determination is made, may direct termination of the contractor’s right to proceed and determine exemplary damages where applicable.

    Contracting Officer / Agency

    Must administer the contract in accordance with the clause, support the notice-and-hearing process, and implement termination or other remedies if the required determination is made. Must also consider whether additional legal or contractual remedies are appropriate.

    Court of Law

    May review the facts supporting the agency’s determination if the matter is challenged in a court with lawful jurisdiction.

    Practical Implications

    1

    Even small gifts, meals, entertainment, or favors can create major contract risk if they are tied to winning work or getting better treatment on an existing contract.

    2

    The clause reaches conduct by agents and other representatives, so contractors need strong ethics controls over subcontractors, consultants, lobbyists, and anyone acting on their behalf.

    3

    A violation can lead to termination of the right to proceed, not just a warning or administrative issue, and the Government may also seek breach-type damages.

    4

    For Department of Defense-funded contracts, the financial exposure can be much higher because exemplary damages may be 3 to 10 times the contractor’s gratuity cost.

    5

    Contractors should document ethics training, gift policies, and reporting procedures, and contracting officers should treat gratuity allegations as serious misconduct requiring proper process and coordination with legal counsel.

    Official Regulatory Text

    As prescribed in 3.202 , insert the following clause: Gratuities (Apr 1984) (a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative- (1) Offered or gave a gratuity ( e.g., an entertainment or gift) to an officer, official, or employee of the Government; and (2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract. (b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction. (c) If this contract is terminated under paragraph (a) of this clause, the Government is entitled- (1) To pursue the same remedies as in a breach of the contract; and (2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This paragraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.) (d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract. (End of clause)

    Back to 52.203FAR Navigator
    samsearch

    The Complete AI Platform for Government Contracting

    Platform
    • Product
    • Pricing
    • ROI calculator
    • Integrations
    • Changelog
    Solutions
    • Solutions
    • Customers
    • Comparisons
    • Market watch
    Resources
    • Blog
    • Free GovCon tools
    • Glossary
    • Docs
    Company
    • API & partnerships
    • Careers
    • Support
    • Compliance
    • Trust centre
    • Contact
    Recognised & verified
    SOC 2 Type II Compliant, SamSearchAWS Partner - Advanced, SamSearch on AWS MarketplaceGartner Peer Insights Customer First, SamSearch
    Ask AI about samsearch
    Ask ChatGPTAsk ClaudeAsk Perplexity
    Follow

    © 2026 samsearch. All rights reserved.

    Terms of usePrivacy policy