Please join Jennifer Schaus & Associates every Wednesday in 2021 for a complimentary Wednesday series. See the full recording on our YouTube Channel (coming soon). For more information about our federal contracting services please visit http://www.Jenniferschaus.com or contact us at 202-365-0598. Win more federal government contracts!

1. DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

2. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting

3. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
The National Veteran Small Business Coalition (NVSBC)
is the largest non-profit trade association in the country representing veteran
and service-disabled veteran-owned small business in the federal
marketplace as prime and subcontractors. NVSBC provides networking,
match-making, coaching, and training opportunities for members.
Please visit: www.nvsbc.org

4. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.

5. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

6. After a year marked by a pandemic that upended life and business as usual, the
government market is eyeing a return to normal in 2021. Don’t miss this Power
Breakfast where the CEO of a leading prime contractor describes how their company is
moving forward and what opportunities lie ahead.
Click here for more information and to register
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS – 2021 - Defense Federal Acquisition Regulation Supplement

7. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration

8. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
Advertise In Our Newsletter:
Reach 23,000+ Subscribers! Includes
Government & Government Contractors
Hello@JenniferSchaus.com

9. Our 2021 Webinar News
* Use Code “DFARS”
for a $15 Discount!

10. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About Our Speaker
Matthew Moriarty
Schoonover & Moriarty LLC
mmoriarty@schoonoverlawfirm.com
913-354-2630

11. DFARS – 2021 - Defense Federal Acquisition Regulation, Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Improper Business Practices and Personal Conflicts of Interest
Wednesday, 20 January 2021

12. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
• Basics
• Ethical Safeguards
• DoD Specific Issues
• Whistleblower Protections
• Reporting Violations

13. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
• DFARS is a supplement – underlying all this is the FAR
• Doing business ethically according to the FAR
• Written code of conduct
• Promoting integrity
• Training
• Reporting systems
• Discipline
• Assessing risk of non-compliance
• Controls to prevent illegal activity
• Reviews of effectiveness
• No gifts or gratuities

14. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
DoD Contractor Code of Business Ethics and Conduct
• Same as FAR 3.1003
• The only difference is reporting violations
• Department of Defense Office of Inspector General, Administrative Investigations Contractor Disclosure
Program, 4800 Mark Center Drive, Suite 14L25, Arlington, VA 22350-1500
• Tel: 866-429-8011
• www.dodig.mil/Programs/Contractor-Disclosure-Program/

15. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
DoD Best Practices
• Senior leaders should not serve in multiple roles in source selection of major weapon systems, major services
• Vacant acquisition positions – fill “acting” basis
• Review military acquisition and management processes –
• Distribution of roles and responsibilities
• Processes for reporting concerns about unusual or inappropriate actions
• Source selection processes –
• Reviewed and approved
• Documented by the head of the contracting activity or at the agency level
• Periodically reviewed by outside independent officials
• Legal review of documentation prior to contract award
• Review whether clearance threshold authorities are clear

16. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Ethical Conduct Safeguards
• Hiring DoD officials with procurement knowledge
• Contractors may not knowingly compensate a former DoD official until an ethics opinion has been
obtained – the DoD official must ask for the opinion
• Who Counts? DoD officials who
• Left DoD within two years and
• participated in acquisition $10M+ at a high level or held positions of
• Program manager
• Deputy program manager
• Contracting officer
• Administrative contracting officer
• SSA
• SSEB member or
• Chief of a financial or technical evaluation team

17. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Ethical Conduct Safeguards
• Penalties include
• Canceling procurement
• Rescission
• Suspension or debarment
• Who can void or rescind contracts?
• No one lower than an official appointed by and with the advice of the Senate
• Under Secretary of Defense (Acquisition, Technology, and Logistics)

18. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Protection of Contractor Information
• When a contractor marks information as proprietary and the DoD disagrees
• Contractor has 60 days to provide written justification
• If the CO agrees, the contractor will be notified
• If the CO disagrees, the contractor will receive a written determination and the markings will be
cancelled or ignored unless the contractor sues within 90 days
• Contractor can bring a claim if it thinks markings are inappropriately removed

19. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Improper Business Practices – DoD Specifics
• Frauds or defense-contract-related felonies
• Individuals convicted of fraud or any other felony arising out of a DoD contract may not
• Work in management or supervisory capacity on any defense contract or first-tier subcontract
• Serve on the board of directors of a defense contractor or subcontractor
• Consult with a defense contractor or subcontractor
• Any other involvement
• Doesn’t include simplified acquisitions, commercial products, or commercial services
• Lasts for 5 years from conviction
• Secretary may waive 5-year ban if “in the interests of national security”
• Criminal penalty –
• $500,000 fine
• “Knowingly” employing such an individual

20. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Improper Business Practices – DoD Specifics
• Kickbacks
• Inspector General Special Agents may investigate
• U.S. Army Criminal Investigation Command
• Naval Criminal Investigative Service
• Air Force Office of Special Investigations
• Defense Criminal Investigative Service

21. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• FAR subpart 3.9 (Whistleblower Protections for Contractor Employees) does not apply to DoD
• No protection of disclosure of classified information
• Rule does not apply to the intelligence community
• No protection, if disclosure
• Relates to an intelligence activity or element or
• Was discovered during a contract or subcontract working for intelligence

22. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• DoD Contractors may not fire, demote, or otherwise discriminate against an employee for disclosing
• Information that the employee believes is evidence of
• Gross mismanagement of a contract
• Gross waste of DoD funds
• Abuse of authority – “arbitrary and capricious exercise of authority that is inconsistent with the
mission of DoD or the successful performance of a DoD contract”
• Violation of law, rule, or regulation
• Substantial and specific danger to public health or safety
• Still true even if the executive branch askes for the demotion
• BUT executive branch may make a “non-discretionary directive” within the authority of the executive
branch

23. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• Authorized recipients of a protected disclosure
• Congress
• Inspector general
• GAO
• A DoD employee managing the contract
• DOJ or other law enforcement
• Court or grand jury
• A manager or other employee of the entity with a duty to investigate or address misconduct

24. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• What do you do if you think you’re being retaliated against?
• File complaint
• Inspector general of the DoD
• Three-year statute of limitations
• Form
• Must be signed
• identify the contractor
• contract number or description of contract
• Violation reported
• Nature of the disclosure including who disclosed to
• Nature and date of the reprisal

25. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• Investigation
• Notice of investigation goes to the complainant, the contractor, and the head of the agency
• DoD Inspector general may “dismiss” a complaint if it is
• Frivolous
• Fails to allege a violation of the prohibition
• Has already been addressed
• OIG will provide written report detailing findings
• 180 days of complaint or
• Longer as agreed to by the person submitting
• Burden of proof – clear and convincing evidence

26. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• Remedies
• Head of the agency has 30 days
• Deny relief or
• Order contractor to
• Take affirmative action
• Reinstate the person with damages including back pay, benefits, etc.
• Pay costs and expenses including attorneys' fees

27. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Whistleblower Protections
• Remedies (cont)
• Court proceedings
• If contractor fails to comply with order, agency head will ask DOJ to seek enforcement in court –
complainant may join and seek relief including damages and fees
• If relief is denied or no decision within 210 days (delay not caused by complainant’s bad faith)
• Deemed to have exhausted administrative remedies
• May bring lawsuit against contractor for compensatory damagers and other relief within two
years
• Any person affected by such an order may ask the Court of Appeals if the order
• Conforms with the applicable law and regulations
• Within 60 days of the order
• OIG decision and agency head order are admissible evidence

28. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Reporting Violations
• Fraud and corruption
• Certificate of Independent Price Determination – FAR 3.103
• Procurement integrity – FAR 3.104
• Gratuities – FAR 3.203
• Antitrust – FAR 3.303
• Contingent Fees – FAR 3.405
• Kickbacks – FAR 3.502
• Prohibitions on persons convicted of defense-related contract felonies – DFARS 203.570
• Reporting a knowing failure to disclose (FAR 3.1003)
• Fraud
• Conflict of interest
• Bribery or gratuity
• False Claims Act
• Overpayment

29. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
DFARS Part #203
Reporting Violations
• Contracting officer will coordinate with Office of Inspector General
• Department of Defense Office of Inspector General, Administrative Investigations Contractor Disclosure
Program, 4800 Mark Center Drive, Suite 14L25, Arlington, VA 22350-1500
• Tel: 866-429-8011
• https://www.dodig.mil/Programs/Contractor-Disclosure-Program/.
• PGI 203.8 - Osd.pentagon.ousd-atl.mbx.cpic@mail.mil

30. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
THANK YOU to Our Speaker
Matthew Moriarty
Schoonover & Moriarty LLC
mmoriarty@schoonoverlawfirm.com
913-354-2630

31. Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com