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   <concept id="DFARS_252.203-7001"
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            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.203-7001</ph> Prohibition on Persons Convicted of Fraud or Other Defense Contract-Related Felonies.</title>
      <conbody outputclass="clause" class="- topic/body  concept/conbody ">
         <p class="- topic/p ">As prescribed in 
               <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="i1377501"
                  href="203.570-3.dita#DFARS_203.570-3">203.570-3</xref>
            , use the following clause:</p>
         <p class="- topic/p " outputclass="Ctr_SmCaps">PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-RELATED FELONIES (JAN 2023)</p>
         <p outputclass="List1" class="- topic/p ">(a)  <i class="+ topic/ph hi-d/i ">Definitions.</i>  As used in this clause—</p>
         <p outputclass="List2" class="- topic/p ">(1)  “Arising out of a contract with the DoD” means any act in connection with—</p>
         <p outputclass="List3" class="- topic/p ">(i)  Attempting to obtain;</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Obtaining; or</p>
         <p outputclass="List3" class="- topic/p ">(iii)  Performing a contract or first-tier subcontract of any agency, department, or component of the Department of Defense (DoD).</p>
         <p outputclass="List2" class="- topic/p ">(2)  “Conviction of fraud or any other felony” means any conviction for fraud or a felony in violation of state or Federal criminal statutes, whether entered on a verdict or plea, including a plea of <i class="+ topic/ph hi-d/i ">nolo contendere</i>, for which sentence has been imposed.</p>
         <p outputclass="List2" class="- topic/p ">(3)  “Date of conviction” means the date judgment was entered against the individual.</p>
         <p outputclass="List1" class="- topic/p ">(b)  Any individual who is convicted after September 29, 1988, of fraud or any other felony arising out of a contract with the DoD is prohibited from serving—</p>
         <p outputclass="List2" class="- topic/p ">(1)  In a management or supervisory capacity on this contract;</p>
         <p outputclass="List2" class="- topic/p ">(2)  On the board of directors of the Contractor; </p>
         <p outputclass="List2" class="- topic/p ">(3)  As a consultant, agent, or representative for the Contractor; or</p>
         <p outputclass="List2" class="- topic/p ">(4)  In any other capacity with the authority to influence, advise, or control the decisions of the Contractor with regard to this contract.</p>
         <p outputclass="List1" class="- topic/p ">(c)  Unless waived, the prohibition in paragraph (b) of this clause applies for not less than 5 years from the date of conviction.</p>
         <p outputclass="List1" class="- topic/p ">(d) 10 U.S.C. 4656 provides that the Contractor shall be subject to a criminal penalty of not more than $500,000 if convicted of knowingly—</p>
         <p outputclass="List2" class="- topic/p ">(1)  Employing a person under a prohibition specified in paragraph (b) of this clause; or</p>
         <p outputclass="List2" class="- topic/p ">(2)  Allowing such a person to serve on the board of directors of the contractor or first-tier subcontractor.</p>
         <p outputclass="List1" class="- topic/p ">(e) In addition to the criminal penalties contained in 10 U.S.C. 4656, the Government may consider other available remedies, such as—</p>
         <p outputclass="List2" class="- topic/p ">(1)  Suspension or debarment;</p>
         <p outputclass="List2" class="- topic/p ">(2)  Cancellation of the contract at no cost to the Government; or</p>
         <p outputclass="List2" class="- topic/p ">(3)  Termination of the contract for default.</p>
         <p outputclass="List1" class="- topic/p ">(f)  The Contractor may submit written requests for waiver of the prohibition in paragraph (b) of this clause to the Contracting Officer.  Requests shall clearly identify—</p>
         <p outputclass="List2" class="- topic/p ">(1)  The person involved;</p>
         <p outputclass="List2" class="- topic/p ">(2)  The nature of the conviction and resultant sentence or punishment imposed;</p>
         <p outputclass="List2" class="- topic/p ">(3)  The reasons for the requested waiver; and</p>
         <p outputclass="List2" class="- topic/p ">(4)  An explanation of why a waiver is in the interest of national security.</p>
         <p outputclass="List1" class="- topic/p ">(g) <i>
               Subcontracts.
            </i> The Contractor agrees to include the substance of this clause, appropriately modified to reflect the identity and relationship of the parties, in all first-tier subcontracts exceeding the simplified acquisition threshold in Part 2 of the Federal Acquisition Regulation, except those for commercial products, commercial services, or commercial components.</p>
         <p outputclass="List1" class="- topic/p ">(h) Pursuant to 10 U.S.C. 4656(c), defense contractors and subcontractors may obtain information as to whether a particular person has been convicted of fraud or any other felony arising out of a contract with the DoD by contacting The Office of Justice Programs, The Denial of Federal Benefits Office, U.S. Department of Justice, telephone 301-937-1542; www.ojp.usdoj.gov/BJA/grant/DPFC.html.</p>
         <p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
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