‘‘(B) an organization shall be liable to the 
Federal Government for a civil penalty of not 
more than $500,000 for each violation plus the 
amount of compensation that the organization 
received under the corresponding Government 
contract. 
‘‘(3) STATUTE OF LIMITATION.—A civil action 
under paragraph (1) shall be brought within 6 years 
after the later of the date on which— 
‘‘(A) the prohibited conduct establishing 
the cause of action occurred; or 
‘‘(B) the Federal Government first knew or 
should reasonably have known that the prohib-
ited conduct had occurred. 
‘‘(4) RULES OF CONSTRUCTION.—The civil pen-
alties set forth in this subsection are not exclusive 
and do not limit the potential for a person that vio-
lates the prohibitions under subsection (a) or fails to 
comply with the requirements of subsection (b), to 
be found liable under the False Claims Act, section 
3729 through section 3733 of title 31, or other ap-
plicable civil or criminal penalties, as prescribed by 
law. 
‘‘(d) ADMINISTRATIVE ACTIONS.— 
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‘‘(1) TYPES OF ACTION THAT AN EXECUTIVE 
AGENCY MAY TAKE.—An Executive agency that re-
ceives information that a contractor or a person has 
failed to comply with a legal requirement to disclose 
an organizational conflict of interest or a personal 
conflict of interest, as defined in the Federal Acqui-
sition Regulation, or has violated the prohibitions 
under subsection (a) or fails to comply with the re-
quirements of subsection (b), shall consider taking 
one or more of the following actions, as appropriate: 
‘‘(A) Canceling the Executive agency pro-
curement or disqualify a contractor from con-
sideration, if a contract has not yet been award-
ed. 
‘‘(B) Terminating a contract with respect 
to which— 
‘‘(i) the contractor or someone acting 
for the contractor has been held liable for 
an offense punishable under subsection (a); 
or 
‘‘(ii) the contracting officer deter-
mines that a person or contractor failed to 
disclose a material organizational or per-
sonal conflict of interest. 
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‘‘(C) Initiating a suspension or debarment 
proceeding for the protection of the Federal 
Government in accordance with procedures in 
the Federal Acquisition Regulation. 
‘‘(2) AMOUNT GOVERNMENT ENTITLED TO RE-
COVER.—When a Federal agency terminates a con-
tract pursuant to paragraph (1)(B), the Federal 
Government is entitled to recover, in addition to any 
penalty prescribed by law, the amount expended 
under the contract. 
‘‘(3) PRESENT RESPONSIBILITY AFFECTED BY 
CONDUCT.—For purposes of a suspension or debar-
ment proceeding initiated pursuant to paragraph 
(1)(C), engaging in conduct constituting an offense 
under this section affects the present responsibility 
of a Federal Government contractor or subcon-
tractor.’’. 
Æ 
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