# 48 CFR § 252.203-7001: 252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7001 ## Section - **Citation:** 48 CFR § 252.203-7001 - **Heading:** 252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 48—Federal Acquisition Regulations System > CHAPTER 2—DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE > SUBCHAPTER H—CLAUSES AND FORMS > PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES > Subpart 252.2—Text of Provisions and Clauses ## Text 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) Cancellation of the contract at no cost to the Government; or (3) Termination of the contract for default. (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— (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. (g) Subcontracts. 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. (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. (End of clause) [56 FR 36479, July 31, 1991, as amended at 58 FR 28471, May 13, 1993; 59 FR 27675, May 27, 1994; 60 FR 61600, Nov. 30, 1995; 62 FR 34128, June 24, 1997; 64 FR 14398, Mar. 25, 1999; 69 FR 74990, Dec. 15, 2004; 73 FR 76972, Dec. 18, 2008; 87 FR 76996, Dec. 16, 2022; 88 FR 6588, Jan. 31, 2023] ## Nearby sections - [48 CFR § 252.101 252.101 Using part 252.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.101.md) - [48 CFR § 252.103 252.103 Identification of provisions and clauses.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.103.md) - [48 CFR § 252.201-7000 252.201-7000 Contracting officer's representative.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.201-7000.md) - [48 CFR § 252.203-7000 252.203-7000 Requirements Relating to Compensation of Former DoD Officials.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7000.md) - [48 CFR § 252.203-7001 252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related Felonies.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7001.md) - [48 CFR § 252.203-7002 252.203-7002 Requirement to Inform Employees of Whistleblower Rights.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7002.md) - [48 CFR § 252.203-7003 252.203-7003 Agency Office of the Inspector General.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7003.md) - [48 CFR § 252.203-7004 252.203-7004 Display of Hotline Posters.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7004.md) - [48 CFR § 252.203-7005 252.203-7005 Representation Relating to Compensation of Former DoD Officials.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7005.md) - [48 CFR § 252.204-7000 252.204-7000 Disclosure of information.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.204-7000.md) - [48 CFR § 252.204-7002 252.204-7002 Payment for Contract Line or Subline Items Not Separately Priced.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.204-7002.md) - [48 CFR § 252.204-7003 252.204-7003 Control of government personnel work product.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.204-7003.md) - [48 CFR § 252.204-7004 252.204-7004 Antiterrorism Awareness Training for Contractors.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.204-7004.md) - [48 CFR § 252.204-7006 252.204-7006 Billing Instructions—Cost Vouchers.](https://www.frixlaw.com/law-library/statutes/ecfr-48-252.204-7006.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-48-252.203-7001. Check the current official text before relying on it. Not legal advice.