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Clauses · FAR · Ethics and integrity

FAR 52.203-16 Preventing Personal Conflicts of Interest

Does the regulation require it to flow down?

Yes

(d): subcontracts that '(1) exceed the simplified acquisition threshold... on the date of subcontract award; and (2) in which subcontractor employees will perform acquisition functions closely associated with inherently governmental functions' — both conditions together; an ordinary manufacturing sub is out.

Form
substance, including paragraph (d) itself
Reaches
all tiers

Checked against acquisition.gov on 2026-08-04 · edition JUN 2020 · base v0.9.3 Read the text ↗

What it makes you produce

3 items for your checklist, slowest first.

  1. A program you have to be running

    You are either running it or you are not, and what the prime asks for is the date it started.

    • A screening routine that takes a written disclosure of financial interests, outside employment and gifts from each employee assigned to the covered task, and updates it when their circumstances change

      Owed for covered employees — the people performing acquisition functions closely associated with inherently governmental functions

      FAR 52.203-16(b)(1)

  2. Something you write2

    Days to weeks, and nobody outside your company has to agree to it.

    • A signed nondisclosure agreement from each covered employee, barring use of nonpublic information for personal gain

      FAR 52.203-16(b)(2)(iii)
    • A written report to the contracting officer of a personal conflict-of-interest violation, with the actions proposed and follow-up reports on the corrective action

      Owed as soon as a violation by a covered employee is identified

      FAR 52.203-16(b)(6)

When it is used

At the prime: contracts above the SAT ($350k) that include services by employees performing acquisition functions closely associated with inherently governmental functions — FAR 3.1106. Flows down via (d) to subs meeting BOTH conditions: above the SAT AND with employees in those functions.

Read closely

(b)(2)(i) bars assigning an employee whose conflict cannot be prevented or mitigated in consultation with the agency, (b)(4) asks for oversight that verifies the safeguards work, and (b)(5) for discipline where they do not. A shop machining parts has no covered employees and the screening has nothing to run on.

The 9 templates that name it, with the line
105Raytheon TC-002 — Supplement 1: Government Contract Provisions from the FARRTXline 177166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2167166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2114168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2210255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 904243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 1813122GD Mission Systems SCM-TMP-095 — FFP Purchase Orders for Commercial/COTS Products or Services in Support of a U.S. Government ContractGeneral Dynamicsline 938240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 1333273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 705

Source: acquisition.gov, FAR 52.203-16 + prescription 3.1106 (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.