252.203-7001 — Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies.

DFARS 252.203-7001 — Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies. As prescribed in 203.570-3, use the following clause: Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies (JAN 2023) (a) Definitions. As used in this clause— (1) Arising out of a contract with the DoD means any act in connection with— (i) Attempting to obtain; (ii) Obtaining; or (iii) Performing a contract or first-tier subcontract of any agency, department, or component of the Department of Defense (DoD). (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 nolo contendere, for which sentence has been imposed. (3) Date of conviction means the date judgment was entered against the individual. (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— (1) In a management or supervisory capacity on this contract; (2) On the board of directors of the Contractor; (3) As a consultant, agent, or representative for the Contractor; or (4) In any other capacity with the authority to influence, advise, or control the decisions of the Contractor with regard to this contract. (c) Unless waived, the prohibition in paragraph (b) of this clause applies for not less than 5 years from the date of conviction. (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— (1) Employing a person under a prohibition specified in paragraph (b) of this clause; or (2) Allowing such a person to serve on the board of directors of the contractor or first-tier subcontractor. (e) In addition to the criminal penalties contained in 10 U.S.C. 4656, the Government may consider other available remedies, such as— (1) Suspension or debarment; (2) Cancellatio

• 4656 provides that the Contractor shall be subject to a criminal penalty of not more than $500,000 if convicted of knowingly— (1) Employing a person under a prohibition specified in paragraph (b) of this clause; or (2) Allowing such a person to serve on the board of directors of the contractor or first-tier subcontractor.
• Requests shall clearly identify— (1) The person involved; (2) The nature of the conviction and resultant sentence or punishment imposed; (3) The reasons for the requested waiver; and (4) An explanation of why a waiver is in the interest of national security.