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(1) CONTRACTING AGENCY.—The term ‘‘contracting agency’’, when 
used with respect to a prime contractor, means a department, 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, com-
mission, credit, gift, gratuity, thing of value, or compensation of any 
kind that is provided to a prime contractor, prime contractor employee, 
subcontractor, or subcontractor employee to improperly obtain or re-
ward favorable treatment in connection with a prime contract or a sub-
contract relating to a prime contract. 
(3) PRIME CONTRACT.—The term ‘‘prime contract’’ means a con-
tract or contractual action entered into by the Federal Government to 
obtain supplies, materials, equipment, or services of any kind. 
(4) PRIME CONTRACTOR.—The term ‘‘prime contractor’’ means a 
person that has entered into a prime contract with the Federal Govern-
ment. 
(5) PRIME CONTRACTOR EMPLOYEE.—The term ‘‘prime contractor 
employee’’ means an officer, partner, employee, or agent of a prime 
contractor. 
(6) SUBCONTRACT.—The term ‘‘subcontract’’ means a contract or 
contractual action entered into by a prime contractor or subcontractor 
to obtain supplies, materials, equipment, or services of any kind under 
a prime contract. 
(7) SUBCONTRACTOR.—The term ‘‘subcontractor’’— 
(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. 
(8) SUBCONTRACTOR
EMPLOYEE.—The term ‘‘subcontractor em-
ployee’’ means an officer, partner, employee, or agent of a subcon-
tractor. 
§ 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
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(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 pre-
vent and detect violations of section 8702 of this title in its own oper-
ations and direct business relationships; and 
(2) cooperate fully with a Federal Government agency investigating 
a violation of section 8702 of this title. 
(b) FULL COOPERATION REQUIRED.—Notwithstanding subsection (d), a 
prime contractor shall cooperate fully with a Federal Government agency in-
vestigating a violation of section 8702 of this title. 
(c) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—A prime contractor or subcontractor that has rea-
sonable grounds to believe that a violation of section 8702 of this title 
may have occurred shall promptly report the possible violation in writ-
ing 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 ad-
ministrative 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 favorable evidence of the person’s respon-
sibility 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 sec-
tion 8702 of this title with respect to a prime contract, the Comptroller 
General and the inspector general of the contracting agency, or a represent-
ative of the contracting agency designated by the head of the agency if the 
agency does not have an inspector general, shall have access to and may 
inspect the facilities and audit the books and records, including electronic 
data or records, of a prime contractor or subcontractor under a prime con-
tract awarded by the agency.