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The Revolutionary FAR Overhaul has published a revised version of this clause. The RFO version supersedes the eCFR text below for contracts using the RFO model; see the RFO deviation for applicability.
52.203-3 Gratuities.
As prescribed in 3.202, insert the following clause:
Gratuities (APR 1984)
(a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative—
(1) Offered or gave a gratuity (e.g., an entertainment or gift) to an officer, official, or employee of the Government; and
(2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract.
(b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction.
(c) If this contract is terminated under paragraph (a) above, the Government is entitled—
(1) To pursue the same remedies as in a breach of the contract; and
(2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This subparagraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.)
(d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.
(End of clause)
[48 FR 42478, Sept. 19, 1983, as amended at 61 FR 39200, July 26, 1996]
RFO
Prescription superseded under the RFO
The prescription shown below is from the codified eCFR. The Revolutionary FAR Overhaul relocates this clause's prescription as follows:
227.7009-1 → 212.205(prescriptive text also revised)
237.7204 → PGI 237.7204(prescriptive text also revised)
See the deviation memorandum for the current prescription authority.
This clause is prescribed in the R-DFARS by the following deviation:
2026-O0023
— DFARS RFO Implementation (Part 37)
(DFARS Part 237)
Add clause 52.203-3
3.202
The contracting officer shall insert the clause at 52.203-3, Gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the Department of Defense.
Prescription data sourced from eCFR as of 2026-06-10 03:16 UTC.
Cross-references within the prescription are not resolved automatically.
Regulatory Stack
The layers of regulation that govern this clause, from the FAR prescription through agency-specific supplements and any active deviations.
RFORFO VersionOverhauled clause text
The Revolutionary FAR Overhaul publishes a revised version of this clause. See the RFO Version tab for the controlling authority under the RFO model.
FARFAR Prescription⚠ May be superseded by RFO3.202
The contracting officer shall insert the clause at 52.203-3, Gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the Department of Defense.
Version history is sourced from the codified eCFR. Changes published only as class deviations or by the Revolutionary FAR Overhaul do not appear here until they are incorporated into the eCFR. For RFO-driven changes see the RFO Version tab and any active deviations cited above.
No version history available from eCFR.
RFO Version
Comparison of the codified eCFR text against the Revolutionary FAR Overhaul revision. Highlights show additions (green) and deletions (red, struck through).
Clause Text
Substantive changes. The RFO version differs materially from the eCFR text.
eCFR (codified)
RFO (implemented)
Unchanged
52.203-3 Gratuities.
eCFR (codified)
RFO (implemented)
As prescribed in 3.202, insert the following clause:
As prescribed in 3.202 , insert the following clause:
Gratuities (APR 1984)
Gratuities (Apr 1984)
(a)
(a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative—
(a)
(a) The right of the Contractor to proceed may be terminated by written notice if, after notice and hearing, the agency head or a designee determines that the Contractor, its agent, or another representative-
(1)
(1) Offered or gave a gratuity (e.g., an entertainment or gift) to an officer, official, or employee of the Government; and
(1)
(1) Offered or gave a gratuity ( e.g., an entertainment or gift) to an officer, official, or employee of the Government; and
(2)
(2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract.
(2)
(2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract.
(b)
(b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction.
(b)
(b) The facts supporting this determination may be reviewed by any court having lawful jurisdiction.
4 added, 2 removed
(c)
(c) If this contract is terminated under paragraph (a) above, the Government is entitled—
(c)
(c) If this contract is terminated under paragraph (a) of this clause, the Government is entitled-
(1)
(1) To pursue the same remedies as in a breach of the contract; and
(1)
(1) To pursue the same remedies as in a breach of the contract; and
1 added, 1 removed
(2)
(2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This subparagraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.)
(2)
(2) In addition to any other damages provided by law, to exemplary damages of not less than 3 nor more than 10 times the cost incurred by the Contractor in giving gratuities to the person concerned, as determined by the agency head or a designee. (This paragraph (c)(2) is applicable only if this contract uses money appropriated to the Department of Defense.)
(d)
(d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.
(d)
(d) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.
(End of clause)
(End of clause)
15 removed
[48 FR 42478, Sept. 19, 1983, as amended at 61 FR 39200, July 26, 1996]
Minor revisions. The RFO prescription has formatting or editorial changes from the eCFR prescription.
eCFR (codified)
RFO (implemented)
Unchanged
52.203-3 Gratuities.: Prescription
eCFR (codified)
RFO (implemented)
1 added, 1 removed
The contracting officer shall insert the clause at 52.203-3, Gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the Department of Defense.
The contracting officer must insert the clause at 52.203-3, Gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the Department of Defense.