52.203-7 Anti-Kickback Procedures.

As prescribed in 3.502-3 , insert the following clause:

Anti-Kickback Procedures (Jun 2020)

(a) Definitions.

Kickback, as used in this clause, means any money, fee, commission, credit, gift, gratuity, thing of

value, or compensation of any kind which is provided to any prime Contractor, prime Contractor

employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or

rewarding favorable treatment in connection with a prime contract or in connection with a

subcontract relating to a prime contract.

Person, as used in this clause, means a corporation, partnership, business association of any kind,

trust, joint-stock company, or individual.

Prime contract, as used in this clause, means a contract or contractual action entered into by the

United States for the purpose of obtaining supplies, materials, equipment, or services of any kind.

Prime Contractor as used in this clause, means a person who has entered into a prime contract with

the United States.

Prime Contractor employee, as used in this clause, means any officer, partner, employee, or agent of

a prime Contractor.

Subcontract, as used in this clause, means a contract or contractual action entered into by a prime

Contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services

of any kind under a prime contract.

Subcontractor, as used in this clause, (1) means any person, other than the prime Contractor, who

offers to furnish or furnishes any supplies, materials, equipment, or services of any kind under a

prime contract or a subcontract entered into in connection with such prime contract, and (2)

includes any person who offers to furnish or furnishes general supplies to the prime Contractor or a

higher tier subcontractor.

Subcontractor employee, as used in this clause, means any officer, partner, employee, or agent of a

subcontractor.

(b) 41 U.S.C. chapter 87, Kickbacks, prohibits any person from-

(1) Providing or attempting to provide or offering to provide any kickback;

(2) Soliciting, accepting, or attempting to accept any kickback; or

(3) Including, directly or indirectly, the amount of any kickback in the contract price charged by a

prime Contractor to the United States or in the contract price charged by a subcontractor to a prime

Contractor or higher tier subcontractor.

(c)
(1) The Contractor shall have in place and follow reasonable procedures designed to prevent and

detect possible violations described in paragraph (b) of this clause in its own operations and direct

business relationships.

(2) When the Contractor has reasonable grounds to believe that a violation described in paragraph

(b) of this clause may have occurred, the Contractor shall promptly report in writing the possible

violation. Such reports shall be made to the inspector general of the contracting agency, the head of

the contracting agency if the agency does not have an inspector general, or the Attorney General.

(3) The Contractor shall cooperate fully with any Federal agency investigating a possible violation

described in paragraph (b) of this clause.

(4) The Contracting Officer may (i) offset the amount of the kickback against any monies owed by

the United States under the prime contract and/or (ii) direct that the Prime Contractor withhold

from sums owed a subcontractor under the prime contract the amount of the kickback. The

Contracting Officer may order that monies withheld under subdivision (c)(4)(ii) of this clause be paid

over to the Government unless the Government has already offset those monies under subdivision

(c)(4)(i) of this clause. In either case, the Prime Contractor shall notify the Contracting Officer when

the monies are withheld.

(5) The Contractor agrees to incorporate the substance of this clause, including this paragraph (c)(5)

but excepting paragraph (c)(1) of this clause, in all subcontracts under this contract that exceed the

threshold specified in Federal Acquisition Regulation 3.502-2(i) on the date of subcontract award.

(End of clause)

Parent topic: 52.203 [Reserved]