H. R. 1107—162 
§ 8505. Audit 
For the purpose of audit and examination, the Comptroller Gen-
eral shall have access to the books, documents, papers, and other 
records of— 
(1) the Committee and of each central nonprofit agency the 
Committee designates under section 8503(c) of this title; and 
(2) qualified nonprofit agencies for the blind and qualified 
nonprofit agencies for other severely disabled that have sold 
products or services under this chapter to the extent those 
books, documents, papers, and other records relate to the activi-
ties of the agency in a fiscal year in which a sale was made 
under this chapter. 
§ 8506. Authorization of appropriations 
Necessary amounts may be appropriated to the Committee to 
carry out this chapter. 
CHAPTER 87—KICKBACKS 
Sec. 
8701.
Definitions. 
8702.
Prohibited conduct. 
8703.
Contractor responsibilities. 
8704.
Inspection authority. 
8705.
Administrative offsets. 
8706.
Civil actions. 
8707.
Criminal penalties. 
§ 8701. Definitions 
In this chapter: 
(1) CONTRACTING AGENCY.—The term ‘‘contracting agency’’, 
when used with respect to a prime contractor, means a depart-
ment, agency, or establishment of the Federal Government 
that enters into a prime contract with a prime contractor. 
(2) KICKBACK.—The term ‘‘kickback’’ means any money, fee, 
commission, credit, gift, gratuity, thing of value, or compensa-
tion of any kind that is provided to a prime contractor, prime 
contractor employee, subcontractor, or subcontractor employee 
to improperly obtain or reward favorable treatment in connec-
tion with a prime contract or a subcontract relating to a prime 
contract. 
(3) PERSON.—The term ‘‘person’’ means a corporation, part-
nership, business association of any kind, trust, joint-stock 
company, or individual. 
(4) PRIME CONTRACT.—The term ‘‘prime contract’’ means a 
contract or contractual action entered into by the Federal 
Government to obtain supplies, materials, equipment, or serv-
ices of any kind. 
(5) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means 
a person that has entered into a prime contract with the 
Federal Government. 
(6) PRIME
CONTRACTOR
EMPLOYEE.—The term ‘‘prime con-
tractor employee’’ means an officer, partner, employee, or agent 
of a prime contractor. 
(7) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract 
or contractual action entered into by a prime contractor or 
subcontractor to obtain supplies, materials, equipment, or serv-
ices of any kind under a prime contract. 
(8) SUBCONTRACTOR.—The term ‘‘subcontractor’’—
H. R. 1107—163 
(A) means a person, other than the prime contractor, 
that offers to furnish or furnishes supplies, materials, 
equipment, or services of any kind under a prime contract 
or a subcontract entered into in connection with the prime 
contract; and 
(B) includes a person that offers to furnish or furnishes 
general supplies to the prime contractor or a higher tier 
subcontractor. 
(9) SUBCONTRACTOR
EMPLOYEE.—The term ‘‘subcontractor 
employee’’ means an officer, partner, employee, or agent of 
a subcontractor. 
§ 8702. Prohibited conduct 
A person may not— 
(1) provide, attempt to provide, or offer to provide a kickback; 
(2) solicit, accept, or attempt to accept a kickback; or 
(3) include the amount of a kickback prohibited by paragraph 
(1) or (2) in the contract price— 
(A) a subcontractor charges a prime contractor or a 
higher tier subcontractor; or 
(B) a prime contractor charges the Federal Government. 
§ 8703. Contractor responsibilities 
(a) REQUIREMENTS INCLUDED IN CONTRACTS.—Each contracting 
agency shall include in each prime contract awarded by the agency 
a requirement that the prime contractor shall— 
(1) have in place and follow reasonable procedures designed 
to prevent and detect violations of section 8702 of this title 
in its own operations and direct business relationships; and 
(2) cooperate fully with a Federal Government agency inves-
tigating a violation of section 8702 of this title. 
(b) FULL COOPERATION REQUIRED.—Notwithstanding subsection 
(d), a prime contractor shall cooperate fully with a Federal Govern-
ment agency investigating a violation of section 8702 of this title. 
(c) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—A prime contractor or subcontractor that 
has reasonable grounds to believe that a violation of section 
8702 of this title may have occurred shall promptly report 
the possible violation in writing 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. 
(2) SUPPLYING INFORMATION AS FAVORABLE EVIDENCE.—In an 
administrative or contractual action to suspend or debar a 
person who is eligible to enter into contracts with the Federal 
Government, evidence that the person has supplied information 
to the Federal Government pursuant to paragraph (1) is favor-
able evidence of the person’s responsibility for the purposes 
of Federal procurement laws and regulations. 
(d) INAPPLICABILITY TO CERTAIN PRIME CONTRACTS.—Subsection 
(a) does not apply to a prime contract— 
(1) that is not greater than $100,000; or 
(2) for the acquisition of commercial items (as defined in 
section 103 of this title). 
§ 8704. Inspection authority 
(a) IN GENERAL.—To ascertain whether there has been a violation 
of section 8702 of this title with respect to a prime contract, the