FAR Part 3 vs. RFO Part 3: From Compliance to Integrity
In the legacy FAR, Part 3 (Improper Business Practices and Personal Conflicts of Interest) was a disjointed collection of rules regarding kickbacks, whistles, and “revolving door” restrictions. The Revolutionary FAR Overhaul (RFO) has consolidated these into a centralized Ethics and Procurement Integrity (EPI) framework. The RFO assumes that in a digital-first environment, transparency is the primary deterrent for fraud.
The Integration of Transparency
The biggest structural change in RFO Part 3 is the mandatory integration of Real-Time Disclosure. While the legacy FAR relied on self-reporting and “OIG Hotlines,” the RFO mandates that contractors use the Integrity Dashboard (ID) for any disclosures related to organizational conflicts of interest (OCI) or gratuity violations exceeding $250.
Key Comparison: Prohibitions & Reporting
| Category | Legacy FAR Part 3 | New RFO Part 3 |
|---|---|---|
| Gratuities | 3.2: Focus on reporting after-the-fact. | RFO 3.1: Proactive “Zero-Gift” digital verification. |
| Whistleblower Protection | 3.9: Procedural and reactive. | Enhanced: Explicitly protects “AI-Driven” anomaly reporting. |
| Conflicts of Interest (OCI) | Mainly in Subpart 3.11/Part 9. | Centralized: Consolidated OCI rules for both Gov and Industry. |
| Contractor Code of Conduct | 3.10: Required for $6M+ contracts. | Dynamic: Threshold is now variable based on RFO Part 1. |
What COs Need to Know: The “Appearance of Impropriety”
RFO Part 3.101 reinforces the “Appearance of Impropriety” standard but adds a 2026 twist: Automated Ethics Screening. Before any competitive award, the RFO now authorizes (and in some cases, requires) COs to run a cross-check of contractor board members against the Conflict of Interest Registry. This replaces the manual “Google search and gut feeling” method we used in the old days.
Impact on Air Force Contracting
For the Air Force, the DAFFARS (Department of the Air Force FAR Supplement) has already issued a Class Deviation (2026-AF003) to align with RFO Part 3. The biggest change is the Post-Government Employment (PGE) certification. Contractors must now provide a digital certification for every former military officer or GS-14/15 hired within the last 24 months before they can charge labor to a cost-reimbursement contract.
Officer’s Intent: The RFO isn’t making ethics harder; it’s making them more visible. If you are in doubt about a contractor’s lunch invitation or an OCI, don’t wait for legal. Check the Integrity Dashboard. In the RFO era, a lack of transparency is considered a lack of integrity.
Relevant Regulations & Links