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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.
52.203-8 Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity.
As prescribed in 3.104-9(a), insert the following clause:
Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity (MAY 2014)
(a) If the Government receives information that a contractor or a person has violated 41 U.S.C. 2102-2104, Restrictions on Obtaining and Disclosing Certain Information, the Government may—
(1) Cancel the solicitation, if the contract has not yet been awarded or issued; or
(2) Rescind the contract with respect to which—
(i) The Contractor or someone acting for the Contractor has been convicted for an offense where the conduct violates 41 U.S.C. 2102 for the purpose of either—
(A) Exchanging the information covered by such subsections for anything of value; or
(B) Obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract; or
(ii) The head of the contracting activity has determined, based upon a preponderance of the evidence, that the Contractor or someone acting for the Contractor has engaged in conduct punishable under 41 U.S.C. 2105(a).
(b) If the Government rescinds the contract under paragraph (a) of this clause, the Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.
(c) The rights and remedies of the Government specified herein are not exclusive, and are in addition to any other rights and remedies provided by law, regulation, or under this contract.
(End of clause)
[62 FR 233, Jan. 2, 1997; 62 FR 10710, Mar. 10, 1997, as amended at 67 FR 13063, Mar. 20, 2002; 79 FR 24214, Apr. 29, 2014]
3.104-9(a)
(a) 52.203-8, Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity; and
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.
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
52.203-8 Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity.
eCFR (codified)
RFO (implemented)
As prescribed in 3.104-9(a), insert the following clause:
As prescribed in 3.104-9(a) , insert the following clause:
Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity (MAY 2014)
Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity (May 2014)
4 added, 2 removed
(a)
(a) If the Government receives information that a contractor or a person has violated 41 U.S.C. 2102-2104, Restrictions on Obtaining and Disclosing Certain Information, the Government may—
(a)
(a) If the Government receives information that a contractor or a person has violated 41 U.S.C. 2102 - 2104, Restrictions on Obtaining and Disclosing Certain Information, the Government may-
(1)
(1) Cancel the solicitation, if the contract has not yet been awarded or issued; or
(1)
(1) Cancel the solicitation, if the contract has not yet been awarded or issued; or
(2)
(2) Rescind the contract with respect to which—
(2)
(2) Rescind the contract with respect to which-
2 added, 3 removed
(i)
(i) The Contractor or someone acting for the Contractor has been convicted for an offense where the conduct violates 41 U.S.C. 2102 for the purpose of either—
(i)
(i) The Contractor or someone acting for the Contractor has been convicted for an offense where the conduct violates 41 U.S.C.2102 for the purpose of either-
(A)
(A) Exchanging the information covered by such subsections for anything of value; or
(A)
(A) Exchanging the information covered by such subsections for anything of value; or
(B)
(B) Obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract; or
(B)
(B) Obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement contract; or
(ii)
(ii) The head of the contracting activity has determined, based upon a preponderance of the evidence, that the Contractor or someone acting for the Contractor has engaged in conduct punishable under 41 U.S.C. 2105(a).
(ii)
(ii) The head of the contracting activity has determined, based upon a preponderance of the evidence, that the Contractor or someone acting for the Contractor has engaged in conduct punishable under 41 U.S.C. 2105(a) .
(b)
(b) If the Government rescinds the contract under paragraph (a) of this clause, the Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.
(b)
(b) If the Government rescinds the contract under paragraph (a) of this clause, the Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.
(c)
(c) The rights and remedies of the Government specified herein are not exclusive, and are in addition to any other rights and remedies provided by law, regulation, or under this contract.
(c)
(c) The rights and remedies of the Government specified herein are not exclusive, and are in addition to any other rights and remedies provided by law, regulation, or under this contract.
(End of clause)
(End of clause)
27 removed
[62 FR 233, Jan. 2, 1997; 62 FR 10710, Mar. 10, 1997, as amended at 67 FR 13063, Mar. 20, 2002; 79 FR 24214, Apr. 29, 2014]
Prescription
No substantive changes. The RFO prescription is identical to the eCFR prescription.