Low RiskDFARScontract-types

252.216-7004Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.216-7004 — Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.216-7004 Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel. As prescribed in 216.406(e) use the following clause: Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel (SEP 2011) (a) Definitions. As used in this clause— Covered incident — (i) Means any incident in which the Contractor, through a criminal, civil, or administrative proceeding that results in a disposition listed in paragraph (a)(ii) of this definition— (A) Has been determined in the performance of this contract to have caused serious bodily injury or death of any civilian or military personnel of the Government through gross negligence or with reckless disregard for the safety of such personnel; or (B) Has been determined to be liable for actions of a subcontractor of the Contractor that caused serious bodily injury or death of any civilian or military personnel of the Government through gross negligence or with reckless disregard for the safety of such personnel. (ii) Includes those incidents that have resulted in any of the following dispositions: (A) In a criminal proceeding, a conviction. (B) In a civil proceeding, a finding of fault or liability that results in the payment of a monetary fine, penalty, reimbursement, restitution, or damage of $5,000 or more. (C) In an administrative proceeding, a finding of fault and liability that results in— ( 1 ) The payment of a monetary fine or penalty of $5,000 or more; or ( 2 ) The payment of a reimbursement, restitution, or damages in excess of $100,000. (D) In a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment of fault by the Contractor if the proceeding could have led to any of the outcomes specified in subparagraphs (a)(ii)(A), (a)(ii) (B), or (a)(ii)(C). (E) In a DoD investigation of the Contractor or its subcontractors at any tier not subject to the jurisdiction of the U.S. courts, a final determ

Source: eCFR, 48 CFR 252.216-7004 (https://www.ecfr.gov/current/title-48/section-252.216-7004)

Compliance Checklist

    Flow-Down to Subcontractors

    Flow-down required

    This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.

    Frequently Asked Questions

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    This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.