The Procurement Integrity Act
The Procurement Integrity Act (PIA), 41 U.S.C. §§ 2101-07, implemented at Federal Acquisition Regulation (FAR) Part 3.104
Passed in 1988 in response to a defense contracting fraud investigation called “Operation III wind.”
Four basic provisions:
Prohibits Disclosing Procurement Information
Prohibits Obtaining Procurement Information
Reporting Requirement for Agency Official Contacted by Offeror or Offeror Concerning Possible Non-Federal Employment
Prohibits Former Official's Acceptance of Compensation from Contractor
Prohibition on Disclosing Procurement Information (FAR 3.104-3(a)
“Except as provided by law, a person described in paragraph (3) shall not knowingly disclose contractor bid or proposal information or source selection information before the award of a Federal agency procurement contract to which the information relates.” 41 U.S.C. § 2102(a)(1).
“Paragraph (1) applies to a person that
(A)(i) is a present or former official of the Federal Government; or
(ii) is acting or has acted for or on behalf of, or who is advising or has advised the Federal Government with respect to, a Federal agency procurement; and –
(B) by virtue of that office, employment, or relationship has or had access to contractor bid or proposal information or source selection information.” 41 U.S.C. § 2102(a)(3).
GENERAL 1.1
The Act provides that neither the system or a member, nor any officer, employee, agent, representative and/or consultant of the system or a member may knowingly, directly or indirectly: (a) make any offer or promise of future employment or business opportunity to, or engage in any discussion of future employment or business opportunity with, any federal procurement officer who is personally and substantially participating in a federal agency procurement in excess of the simplified acquisition threshold (as that term is defined in 48 CFR 2.101) in which the system or the respective member is competing; (b) offer, give or promise to offer or give any money, gratuity or other thing of value to any federal procurement officer; (c) solicit or obtain from any officer or employee of a federal agency, prior to the award of a contract, any proprietary or source selection information regarding such procurement;or
15.01.02 Federal Procurement Integrity Act Page 2 of 2(d)other than as provided by law, obtain a third-party contractor bid or proposal information or source selection information before the award of a federal agency procurement contract to which the information relates.1.2 Failure to comply with the Act can result in personal liability and penalties. Criminal penalties for violations of the Act include personal imprisonment up to five years. Civil penalties can result in personal fines of up to $50,000 for each violation plus twice the amount of compensation which the individual received or offered for the prohibited conduct. Organizational penalties are also possible.2.
ADMINISTRATION
CEOs are responsible for establishing guidelines to comply with the Act, including the requirement to obtain a written certification of compliance from each officer, employee, agent, representative and/or consultant of the system who personally and substantially participates or will participate in the preparation or submission of a bid or offer under the Act. The certification must state that the participant (1) is familiar with and will comply with the requirements of the Act,and (2) will report immediately any information concerning a violation of the Act. A suggested format for the certificate is available online
FAR 3.000 Scope of part.
This part prescribes policies and procedures for avoiding improper business practices and personal conflicts of interest and for dealing with their apparent or actual occurrence.
Subpart 3.1—Safeguards
3.101 Standards of conduct.
3.101-1 General.
Government business shall be conducted in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality and with preferential treatment for none. Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct. The general rule is to avoid strictly any conflict of interest or even the appearance of a conflict of interest in Government-contractor relationships. While many Federal laws and regulations place restrictions on the actions of Government personnel, their official conduct must, in addition, be such that they would have no reluctance to make a full public disclosure of their actions.
3.101-2 Solicitation and acceptance of gratuities by Government personnel.
As a rule, no Government employee may solicit or accept, directly or indirectly, any gratuity, gift, favor, entertainment, loan, or anything of monetary value from anyone who (a) has or is seeking to obtain Government business with the employee’s agency, (b) conducts activities that are regulated by the employee’s agency, or (c) has interests that may be substantially affected by the performance or nonperformance of the employee’s official duties. Certain limited exceptions are authorized in agency regulations.
3.101-3 Agency regulations.
(a) Agencies are required by Executive Order 11222 of May 8, 1965, and 5 CFR 735 to prescribe “Standards of Conduct.” These agency standards contain—
(1) Agency-authorized exceptions to 3.101-2; and
(2) Disciplinary measures for persons violating the standards of conduct.
(b) Requirements for employee financial disclosure and restrictions on private employment for former Government employees are in Office of Personnel Management and agency regulations implementing Public Law 95-521, which amended 18 U.S.C. 207.