(a) When information is received indicating that action under the Gratuities clause may be appropriate, send it for evaluation and appropriate action to the military commander having jurisdiction over the contract (exempt report, Army Regulation (AR) 335-15, paragraph 5-2).
(i) If the evaluation supports applicability of the Gratuities clause, the military commander will send the matter directly to the cognizant HCA with:
(A) The name and address of the contractor, with a statement as to form of organization, including names and addresses of principals.
(B) Complete contract data, including number, date, estimated day of completion of performance, general description of supplies or services procured, dollar amount, status of performance and payment, urgency of requirements and availability of the supplies or services from other sources.
(C) A summary of the facts concerning the suspected violation, with names and addresses, dates and references to documentary evidence available.
(D) The status of any ongoing investigation with an estimated date upon which the report of investigation will be submitted.
(ii) If required, submit a complete report of investigation as soon as practicable (exempt report, AR 335-15, paragraph 5-2). Be careful to preserve the admissibility of documentary evidence and exhibits, bearing in mind that action adverse to a contractor under the Gratuities clause is subject to review by a competent court. Copies or descriptions shall be used in this report where necessary or desirable to preserve the chain of custody.
(iii) The cognizant contracting activity must send the matter to the appropriate Debarring Official (DFARS 209.403 and 5109.403).
(iv) The contracting officer must withhold from payments otherwise due the contractor a sum up to 10 times the estimated amount of the gratuities alleged to have been offered or given by the contractor, its agents, or other representatives, in violation of the Gratuities clause.
(v) Pending final decision on the matter, the cognizant contracting activity must send to the Debarring Official information regarding any termination, set-off, or withholding action proposed or taken against the contractor.
