163 
(c) REIMBURSEMENT.—Payments made pursuant to subsections (a) and 
(b) shall be reimbursed to the fund provided by section 1304 of title 31 by 
the agency whose appropriations were used for the contract out of available 
amounts or by obtaining additional appropriations for purposes of reim-
bursement. 
(d) TENNESSEE VALLEY AUTHORITY.— 
(1) JUDGMENTS.—Notwithstanding subsections (a) to (c), any judg-
ment against the Tennessee Valley Authority on a claim under this 
chapter shall be paid promptly in accordance with section 9(b) of the 
Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)). 
(2) MONETARY AWARDS.—Notwithstanding subsections (a) to (c), 
any monetary award to a contractor by the agency board of the Ten-
nessee Valley Authority shall be paid in accordance with section 9(b) 
of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831h(b)). 
§ 6909. Interest 
(a) PERIOD.— 
(1) IN GENERAL.—Interest on an amount found due a contractor on 
a claim shall be paid to the contractor for the period beginning with 
the date the contracting officer receives the contractor’s claim, pursu-
ant to section 6903(a) of this title, until the date of payment of the 
claim. 
(2) DEFECTIVE CERTIFICATION.—On a claim for which the certifi-
cation under section 6903(b)(1) of this title is found to be defective, 
any interest due under this section shall be paid for the period begin-
ning with the date the contracting officer initially receives the contrac-
tor’s claim until the date of payment of the claim. 
(b) RATE.—Interest shall accrue and be paid at a rate which the Sec-
retary of the Treasury shall specify as applicable for each successive 6- 
month period. The rate shall be determined by the Secretary of the Treas-
ury taking into consideration current private commercial rates of interest 
for new loans maturing in approximately 5 years. 
Subtitle III—Miscellaneous 
Chapter 
Sec. 
81. Drug-Free Workplace ..............................................................................
8101 
83. Buy American .............................................................................................
8301 
85. Committee for Purchase From People Who Are Blind or Se-
verely Disabled.
8501 
87. Kickbacks .....................................................................................................
8701 
CHAPTER 81—DRUG-FREE WORKPLACE 
Sec. 
8101.
Definitions and construction. 
8102.
Drug-free workplace requirements for Federal contractors. 
8103.
Drug-free workplace requirements for Federal grant recipients. 
8104.
Employee sanctions and remedies. 
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8105.
Waiver. 
8106.
Regulations. 
§ 8101. Definitions and construction 
(a) DEFINITIONS.—In this chapter: 
(1) CONTRACTOR.—The term ‘‘contractor’’ means the department, 
division, or other unit of a person responsible for the performance 
under the contract. 
(2) CONTROLLED
SUBSTANCE.—The term ‘‘controlled substance’’ 
means a controlled substance in schedules I through V of section 202 
of the Comprehensive Drug Abuse Prevention and Control Act of 1970 
(21 U.S.C. 812). 
(3) CONVICTION.—The term ‘‘conviction’’ means a finding of guilt 
(including a plea of nolo contendere), an imposition of sentence, or 
both, by a judicial body charged with the responsibility to determine 
violations of Federal or State criminal drug statutes. 
(4) CRIMINAL DRUG STATUTE.—The term ‘‘criminal drug statute’’ 
means a criminal statute involving manufacture, distribution, dispensa-
tion, use, or possession of a controlled substance. 
(5) DRUG-FREE
WORKPLACE.—The term ‘‘drug-free workplace’’ 
means a site of an entity— 
(A) for the performance of work done in connection with a spe-
cific contract or grant described in section 8102 or 8103 of this 
title; and 
(B) at which employees of the entity are prohibited from engag-
ing in the unlawful manufacture, distribution, dispensation, pos-
session, or use of a controlled substance in accordance with the 
requirements of the Anti-Drug Abuse Act of 1988 (Public Law 
100–690, 102 Stat. 4181). 
(6) EMPLOYEE.—The term ‘‘employee’’ means the employee of a 
contractor or grantee directly engaged in the performance of work pur-
suant to the contract or grant described in section 8102 or 8103 of 
this title. 
(7) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means an agen-
cy as defined in section 552(f) of title 5. 
(8) GRANTEE.—The term ‘‘grantee’’ means the department, division, 
or other unit of a person responsible for the performance under the 
grant. 
(b) CONSTRUCTION.—This chapter does not require law enforcement 
agencies to comply with this chapter if the head of the agency determines 
it would be inappropriate in connection with the agency’s undercover oper-
ations. 
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§ 8102. Drug-free workplace requirements for Federal con-
tractors 
(a) IN GENERAL.— 
(1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an 
individual shall not be considered a responsible source (as defined in 
section 113 of this title) for the purposes of being awarded a contract 
for the procurement of any property or services of a value greater than 
the simplified acquisition threshold (as defined in section 134 of this 
title) by a Federal agency, other than a contract for the procurement 
of commercial items (as defined in section 103 of this title), unless the 
person agrees to provide a drug-free workplace by— 
(A) publishing a statement notifying employees that the unlaw-
ful manufacture, distribution, dispensation, possession, or use of 
a controlled substance is prohibited in the person’s workplace and 
specifying the actions that will be taken against employees for vio-
lations of the prohibition; 
(B) establishing a drug-free awareness program to inform em-
ployees about— 
(i) the dangers of drug abuse in the workplace; 
(ii) the person’s policy of maintaining a drug-free work-
place; 
(iii) available drug counseling, rehabilitation, and employee 
assistance programs; and 
(iv) the penalties that may be imposed on employees for 
drug abuse violations; 
(C) making it a requirement that each employee to be engaged 
in the performance of the contract be given a copy of the state-
ment required by subparagraph (A); 
(D) notifying the employee in the statement required by sub-
paragraph (A) that as a condition of employment on the contract 
the employee will— 
(i) abide by the terms of the statement; and 
(ii) notify the employer of any criminal drug statute convic-
tion for a violation occurring in the workplace no later than 
5 days after the conviction; 
(E) notifying the contracting agency within 10 days after receiv-
ing notice under subparagraph (D)(ii) from an employee or other-
wise receiving actual notice of a conviction; 
(F) imposing a sanction on, or requiring the satisfactory partici-
pation in a drug abuse assistance or rehabilitation program by, 
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any employee who is convicted, as required by section 8104 of this 
title; and 
(G) making a good faith effort to continue to maintain a drug- 
free workplace through implementation of subparagraphs (A) to 
(F). 
(2) INDIVIDUALS.—A Federal agency shall not make a contract with 
an individual unless the individual agrees not to engage in the unlawful 
manufacture, distribution, dispensation, possession, or use of a con-
trolled substance in the performance of the contract. 
(b) SUSPENSION, TERMINATION, OR DEBARMENT OF CONTRACTOR.— 
(1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.— 
Payment under a contract awarded by a Federal agency may be sus-
pended and the contract may be terminated, and the contractor or indi-
vidual who made the contract with the agency may be suspended or 
debarred in accordance with the requirements of this section, if the 
head of the agency determines that— 
(A) the contractor is violating, or has violated, the requirements 
of subparagraph (A), (B), (C), (D), (E), or (F) of subsection 
(a)(1); or 
(B) the number of employees of the contractor who have been 
convicted of violations of criminal drug statutes for violations oc-
curring in the workplace indicates that the contractor has failed 
to make a good faith effort to provide a drug-free workplace as 
required by subsection (a). 
(2) CONDUCT
OF
SUSPENSION, TERMINATION, AND
DEBARMENT 
PROCEEDINGS.—A contracting officer who determines in writing that 
cause for suspension of payments, termination, or suspension or debar-
ment exists shall initiate an appropriate action, to be conducted by the 
agency concerned in accordance with the Federal Acquisition Regula-
tion and applicable agency procedures. The Federal Acquisition Regula-
tion shall be revised to include rules for conducting suspension and de-
barment proceedings under this subsection, including rules providing 
notice, opportunity to respond in writing or in person, and other proce-
dures as may be necessary to provide a full and fair proceeding to a 
contractor or individual. 
(3) EFFECT OF DEBARMENT.—A contractor or individual debarred 
by a final decision under this subsection is ineligible for award of a 
contract by a Federal agency, and for participation in a future procure-
ment by a Federal agency, for a period specified in the decision, not 
to exceed 5 years. 
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167 
§ 8103. Drug-free workplace requirements for Federal grant 
recipients 
(a) IN GENERAL.— 
(1) PERSONS OTHER THAN INDIVIDUALS.—A person other than an 
individual shall not receive a grant from a Federal agency unless the 
person agrees to provide a drug-free workplace by— 
(A) publishing a statement notifying employees that the unlaw-
ful manufacture, distribution, dispensation, possession, or use of 
a controlled substance is prohibited in the grantee’s workplace and 
specifying the actions that will be taken against employees for vio-
lations of the prohibition; 
(B) establishing a drug-free awareness program to inform em-
ployees about— 
(i) the dangers of drug abuse in the workplace; 
(ii) the grantee’s policy of maintaining a drug-free work-
place; 
(iii) available drug counseling, rehabilitation, and employee 
assistance programs; and 
(iv) the penalties that may be imposed on employees for 
drug abuse violations; 
(C) making it a requirement that each employee to be engaged 
in the performance of the grant be given a copy of the statement 
required by subparagraph (A); 
(D) notifying the employee in the statement required by sub-
paragraph (A) that as a condition of employment in the grant the 
employee will— 
(i) abide by the terms of the statement; and 
(ii) notify the employer of any criminal drug statute convic-
tion for a violation occurring in the workplace no later than 
5 days after the conviction; 
(E) notifying the granting agency within 10 days after receiving 
notice under subparagraph (D)(ii) from an employee or otherwise 
receiving actual notice of a conviction; 
(F) imposing a sanction on, or requiring the satisfactory partici-
pation in a drug abuse assistance or rehabilitation program by, 
any employee who is convicted, as required by section 8104 of this 
title; and 
(G) making a good faith effort to continue to maintain a drug- 
free workplace through implementation of subparagraphs (A) to 
(F). 
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(2) INDIVIDUALS.—A Federal agency shall not make a grant to an 
individual unless the individual agrees not to engage in the unlawful 
manufacture, distribution, dispensation, possession, or use of a con-
trolled substance in conducting an activity with the grant. 
(b) SUSPENSION, TERMINATION, OR DEBARMENT OF GRANTEE.— 
(1) GROUNDS FOR SUSPENSION, TERMINATION, OR DEBARMENT.— 
Payment under a grant awarded by a Federal agency may be sus-
pended and the grant may be terminated, and the grantee may be sus-
pended or debarred, in accordance with the requirements of this sec-
tion, if the head of the agency or the official designee of the head of 
the agency determines in writing that— 
(A) the grantee is violating, or has violated, the requirements 
of subparagraph (A), (B), (C), (D), (E), (F), or (G) of subsection 
(a)(1); or 
(B) the number of employees of the grantee who have been con-
victed of violations of criminal drug statutes for violations occur-
ring in the workplace indicates that the grantee has failed to make 
a good faith effort to provide a drug-free workplace as required 
by subsection (a)(1). 
(2) CONDUCT
OF
SUSPENSION, TERMINATION, AND
DEBARMENT 
PROCEEDINGS.—A suspension of payments, termination, or suspension 
or debarment proceeding subject to this subsection shall be conducted 
in accordance with applicable law, including Executive Order 12549 or 
any superseding executive order and any regulations prescribed to im-
plement the law or executive order. 
(3) EFFECT OF DEBARMENT.—A grantee debarred by a final deci-
sion under this subsection is ineligible for award of a grant by a Fed-
eral agency, and for participation in a future grant by a Federal agen-
cy, for a period specified in the decision, not to exceed 5 years. 
§ 8104. Employee sanctions and remedies 
Within 30 days after receiving notice from an employee of a conviction 
pursuant to section 8102(a)(1)(D)(ii) or 8103(a)(1)(D)(ii) of this title, a 
contractor or grantee shall— 
(1) take appropriate personnel action against the employee, up to 
and including termination; or 
(2) require the employee to satisfactorily participate in a drug abuse 
assistance or rehabilitation program approved for those purposes by a 
Federal, State, or local health, law enforcement, or other appropriate 
agency. 
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169 
§ 8105. Waiver 
(a) IN GENERAL.—The head of an agency may waive a suspension of 
payments, termination of the contract or grant, or suspension or debarment 
of a contractor or grantee under this chapter with respect to a particular 
contract or grant if— 
(1) in the case of a contract, the head of the agency determines 
under section 8102(b)(1) of this title, after a final determination is 
issued under section 8102(b)(1), that suspension of payments, termi-
nation of the contract, suspension or debarment of the contractor, or 
refusal to permit a person to be treated as a responsible source for a 
contract would severely disrupt the operation of the agency to the det-
riment of the Federal Government or the general public; or 
(2) in the case of a grant, the head of the agency determines that 
suspension of payments, termination of the grant, or suspension or de-
barment of the grantee would not be in the public interest. 
(b) WAIVER AUTHORITY MAY NOT BE DELEGATED.—The authority of 
the head of an agency under this section to waive a suspension, termination, 
or debarment shall not be delegated. 
§ 8106. Regulations 
Government-wide regulations governing actions under this chapter shall 
be issued pursuant to part B of subtitle I of this title. 
CHAPTER 83—BUY AMERICAN 
Sec. 
8301.
Definitions. 
8302.
American materials required for public use. 
8303.
Contracts for public works. 
8304.
Waiver rescission. 
8305.
Annual report. 
§ 8301. Definitions 
In this chapter: 
(1) PUBLIC BUILDING, PUBLIC USE, AND PUBLIC WORK.—The terms 
‘‘public building’’, ‘‘public use’’, and ‘‘public work’’ mean a public 
building of, use by, and a public work of, the Federal Government, the 
District of Columbia, Puerto Rico, American Samoa, and the Virgin Is-
lands. 
(2) UNITED STATES.—The term ‘‘United States’’ includes any place 
subject to the jurisdiction of the United States. 
§ 8302. American materials required for public use 
(a) IN GENERAL.—Only unmanufactured articles, materials, and supplies 
that have been mined or produced in the United States, and only manufac-
tured articles, materials, and supplies that have been manufactured in the 
United States substantially all from articles, materials, or supplies mined, 
produced, or manufactured in the United States, shall be acquired for public 
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use unless the head of the department or independent establishment con-
cerned determines their acquisition to be inconsistent with the public inter-
est or their cost to be unreasonable. 
(b) EXCEPTIONS.—This section does not apply— 
(1) to articles, materials, or supplies for use outside the United 
States; 
(2) if articles, materials, or supplies of the class or kind to be used, 
or the articles, materials, or supplies from which they are manufac-
tured, are not mined, produced, or manufactured in the United States 
in sufficient and reasonably available commercial quantities and are not 
of a satisfactory quality; and 
(3) to manufactured articles, materials, or supplies procured under 
any contract with an award value that is not more than the micro-pur-
chase threshold under section 1902 of this title. 
§ 8303. Contracts for public works 
(a) IN GENERAL.—Every contract for the construction, alteration, or re-
pair of any public building or public work in the United States shall contain 
a provision that in the performance of the work the contractor, subcontrac-
tors, material men, or suppliers shall use only— 
(1) unmanufactured articles, materials, and supplies that have been 
mined or produced in the United States; and 
(2) manufactured articles, materials, and supplies that have been 
manufactured in the United States substantially all from articles, mate-
rials, or supplies mined, produced, or manufactured in the United 
States. 
(b) EXCEPTIONS.— 
(1) IN GENERAL.—This section does not apply— 
(A) to articles, materials, or supplies for use outside the United 
States; 
(B) if articles, materials, or supplies of the class or kind to be 
used, or the articles, materials, or supplies from which they are 
manufactured, are not mined, produced, or manufactured in the 
United States in sufficient and reasonably available commercial 
quantities and are not of a satisfactory quality; and 
(C) to manufactured articles, materials, or supplies procured 
under any contract with an award value that is not more than the 
micro-purchase threshold under section 1902 of this title. 
(2) PARTICULAR ARTICLE, MATERIAL, OR SUPPLY.—If the head of 
the department or independent establishment making the contract finds 
that it is impracticable to comply with subsection (a) for a particular 
article, material, or supply or that it would unreasonably increase the 
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171 
cost, an exception shall be noted in the specifications for that article, 
material, or supply and a public record of the findings that justified 
the exception shall be made. 
(3) INCONSISTENT WITH PUBLIC INTEREST.—Subsection (a) shall be 
regarded as requiring the purchase, for public use within the United 
States, of articles, materials, or supplies manufactured in the United 
States in sufficient and reasonably available commercial quantities and 
of a satisfactory quality, unless the head of the department or inde-
pendent establishment concerned determines their purchase to be in-
consistent with the public interest or their cost to be unreasonable. 
(c) RESULTS OF FAILURE TO COMPLY.—If the head of a department, bu-
reau, agency, or independent establishment that has made a contract con-
taining the provision required by subsection (a) finds that there has been 
a failure to comply with the provision in the performance of the contract, 
the head of the department, bureau, agency, or independent establishment 
shall make the findings public. The findings shall include the name of the 
contractor obligated under the contract. The contractor, and any subcon-
tractor, material man, or supplier associated or affiliated with the con-
tractor, shall not be awarded another contract for the construction, alter-
ation, or repair of any public building or public work for 3 years after the 
findings are made public. 
§ 8304. Waiver rescission 
(a) TYPE OF AGREEMENT.—An agreement referred to in subsection (b) 
is a reciprocal defense procurement memorandum of understanding between 
the United States and a foreign country pursuant to which the Secretary 
of Defense has prospectively waived this chapter for certain products in that 
country. 
(b) DETERMINATION BY SECRETARY OF DEFENSE.—If the Secretary of 
Defense, after consultation with the United States Trade Representative, 
determines that a foreign country that is party to an agreement described 
in subsection (a) has violated the agreement by discriminating against cer-
tain types of products produced in the United States that are covered by 
the agreement, the Secretary of Defense shall rescind the Secretary’s blan-
ket waiver of this chapter with respect to those types of products produced 
in that country. 
§ 8305. Annual report 
Not later than 60 days after the end of each fiscal year, the Secretary 
of Defense shall submit to Congress a report on the amount of purchases 
by the Department of Defense from foreign entities in that fiscal year. The 
report shall separately indicate the dollar value of items for which this chap-
ter was waived pursuant to— 
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(1) a reciprocal defense procurement memorandum of understanding 
described in section 8304(a) of this title; 
(2) the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.); or 
(3) an international agreement to which the United States is a party. 
CHAPTER 85—COMMITTEE FOR PURCHASE FROM 
PEOPLE WHO ARE BLIND OR SEVERELY DISABLED 
Sec. 
8501.
Definitions. 
8502.
Committee for Purchase From People Who Are Blind or Severely Disabled. 
8503.
Duties and powers of the Committee. 
8504.
Procurement requirements for the Federal Government. 
8505.
Audit. 
8506.
Authorization of appropriations. 
§ 8501. Definitions 
In this chapter: 
(1) BLIND.—The term ‘‘blind’’ refers to an individual or class of in-
dividuals whose central visual acuity does not exceed 20/200 in the bet-
ter eye with correcting lenses or whose visual acuity, if better than 20/ 
200, is accompanied by a limit to the field of vision in the better eye 
to such a degree that its widest diameter subtends an angle of no 
greater than 20 degrees. 
(2) COMMITTEE.—The term ‘‘Committee’’ means the Committee for 
Purchase From People Who Are Blind or Severely Disabled established 
under section 8502 of this title. 
(3) DIRECT LABOR.—The term ‘‘direct labor’’— 
(A) includes all work required for preparation, processing, and 
packing of a product, or work directly relating to the performance 
of a service; but 
(B) does not include supervision, administration, inspection, or 
shipping. 
(4) ENTITY OF THE FEDERAL GOVERNMENT AND FEDERAL GOVERN-
MENT.—The terms ‘‘entity of the Federal Government’’ and ‘‘Federal 
Government’’ include an entity of the legislative or judicial branch, a 
military department or executive agency (as defined in sections 102 
and 105 of title 5, respectively), the United States Postal Service, and 
a nonappropriated fund instrumentality under the jurisdiction of the 
Armed Forces. 
(5) OTHER SEVERELY DISABLED.—The term ‘‘other severely dis-
abled’’ means an individual or class of individuals under a physical or 
mental disability, other than blindness, which (according to criteria es-
tablished by the Committee after consultation with appropriate entities 
of the Federal Government and taking into account the views of non- 
Federal Government entities representing the disabled) constitutes a 
substantial handicap to employment and is of a nature that prevents 
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the individual from currently engaging in normal competitive employ-
ment. 
(6) QUALIFIED
NONPROFIT
AGENCY
FOR
OTHER
SEVERELY
DIS-
ABLED.—The term ‘‘qualified nonprofit agency for other severely dis-
abled’’ means an agency— 
(A)(i) organized under the laws of the United States or a State; 
(ii) operated in the interest of severely disabled individuals who 
are not blind; and 
(iii) of which no part of the net income of the agency inures 
to the benefit of a shareholder or other individual; 
(B) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary of Labor; and 
(C) that in the production of products and in the provision of 
services (whether or not the products or services are procured 
under this chapter) during the fiscal year employs blind or other 
severely disabled individuals for at least 75 percent of the hours 
of direct labor required for the production or provision of the 
products or services. 
(7) QUALIFIED NONPROFIT AGENCY FOR THE BLIND.—The term 
‘‘qualified nonprofit agency for the blind’’ means an agency— 
(A)(i) organized under the laws of the United States or a State; 
(ii) operated in the interest of blind individuals; and 
(iii) of which no part of the net income of the agency inures 
to the benefit of a shareholder or other individual; 
(B) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary of Labor; and 
(C) that in the production of products and in the provision of 
services (whether or not the products or services are procured 
under this chapter) during the fiscal year employs blind individ-
uals for at least 75 percent of the hours of direct labor required 
for the production or provision of the products or services. 
(8) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely disabled 
individual’’ means an individual or class of individuals under a physical 
or mental disability, other than blindness, which (according to criteria 
established by the Committee after consultation with appropriate enti-
ties of the Federal Government and taking into account the views of 
non-Federal Government entities representing the disabled) constitutes 
a substantial handicap to employment and is of a nature that prevents 
the individual from currently engaging in normal competitive employ-
ment. 
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(9) STATE.—The term ‘‘State’’ includes the District of Columbia, 
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the 
Northern Mariana Islands. 
§ 8502. Committee for Purchase From People Who Are Blind 
or Severely Disabled 
(a) ESTABLISHMENT.—There is a Committee for Purchase From People 
Who Are Blind or Severely Disabled. 
(b) COMPOSITION.—The Committee consists of 15 members appointed by 
the President as follows: 
(1) One officer or employee from each of the following, nominated 
by the head of the department or agency: 
(A) The Department of Agriculture. 
(B) The Department of Defense. 
(C) The Department of the Army. 
(D) The Department of the Navy. 
(E) The Department of the Air Force. 
(F) The Department of Education. 
(G) The Department of Commerce. 
(H) The Department of Veterans Affairs. 
(I) The Department of Justice. 
(J) The Department of Labor. 
(K) The General Services Administration. 
(2) One member from individuals who are not officers or employees 
of the Federal Government and who are conversant with the problems 
incident to the employment of the blind. 
(3) One member from individuals who are not officers or employees 
of the Federal Government and who are conversant with the problems 
incident to the employment of other severely disabled individuals. 
(4) One member from individuals who are not officers or employees 
of the Federal Government and who represent blind individuals em-
ployed in qualified nonprofit agencies for the blind. 
(5) One member from individuals who are not officers or employees 
of the Federal Government and who represent severely disabled individ-
uals (other than blind individuals) employed in qualified nonprofit 
agencies for other severely disabled individuals. 
(c) TERMS OF OFFICE.—Members appointed under paragraph (2), (3), 
(4), or (5) of subsection (b) shall be appointed for terms of 5 years and 
may be reappointed if the member meets the qualifications prescribed by 
those paragraphs. 
(d) CHAIRMAN.—The members of the Committee shall elect one of the 
members to be Chairman. 
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(e) VACANCY.— 
(1) MANNER IN WHICH FILLED.—A vacancy in the membership of 
the Committee shall be filled in the manner in which the original ap-
pointment was made. 
(2) UNFULFILLED TERM.—A member appointed under paragraph 
(2), (3), (4), or (5) of subsection (b) to fill a vacancy occurring prior 
to the expiration of the term for which the predecessor was appointed 
shall be appointed only for the remainder of the term. The member 
may serve after the expiration of a term until a successor takes office. 
(f) PAY AND TRAVEL EXPENSES.— 
(1) AMOUNT TO WHICH MEMBERS ARE ENTITLED.—Except as pro-
vided in paragraph (2), members of the Committee are entitled to re-
ceive the daily equivalent of the maximum annual rate of basic pay 
payable under section 5376 of title 5 for each day (including travel- 
time) during which they perform services for the Committee. A member 
is entitled to travel expenses, including a per diem allowance instead 
of subsistence, as provided under section 5703 of title 5. 
(2) OFFICERS OR EMPLOYEES OF THE FEDERAL GOVERNMENT.— 
Members who are officers or employees of the Federal Government may 
not receive additional pay because of their service on the Committee. 
(g) STAFF.— 
(1) APPOINTMENT AND COMPENSATION.—Subject to rules the Com-
mittee may adopt and to chapters 33 and 51 and subchapter III of 
chapter 53 of title 5, the Chairman may appoint and fix the pay of 
personnel the Committee determines are necessary to assist it in car-
rying out this chapter. 
(2) PERSONNEL FROM OTHER ENTITIES.—On request of the Com-
mittee, the head of an entity of the Federal Government may detail, 
on a reimbursable basis, any personnel of the entity to the Committee 
to assist it in carrying out this chapter. 
(h) OBTAINING OFFICIAL INFORMATION.—The Committee may secure di-
rectly from an entity of the Federal Government information necessary to 
enable it to carry out this chapter. On request of the Chairman, the head 
of the entity shall furnish the information to the Committee. 
(i) ADMINISTRATIVE SUPPORT SERVICES.—The Administrator of General 
Services shall provide to the Committee, on a reimbursable basis, adminis-
trative support services the Committee requests. 
(j) ANNUAL REPORT.—Not later than December 31 of each year, the 
Committee shall transmit to the President a report that includes the names 
of the Committee members serving in the prior fiscal year, the dates of 
Committee meetings in that year, a description of the activities of the Com-
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176 
mittee under this chapter in that year, and any recommendations for 
changes in this chapter which the Committee determines are necessary. 
§ 8503. Duties and powers of the Committee 
(a) PROCUREMENT LIST.— 
(1) MAINTENANCE OF LIST.—The Committee shall maintain and 
publish in the Federal Register a procurement list. The list shall in-
clude the following products and services determined by the Committee 
to be suitable for the Federal Government to procure pursuant to this 
chapter: 
(A) Products produced by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for other severely disabled. 
(B) The services those agencies provide. 
(2) CHANGES TO LIST.—The Committee may, by rule made in ac-
cordance with the requirements of section 553(b) to (e) of title 5, add 
to and remove from the procurement list products so produced and 
services so provided. 
(b) FAIR MARKET PRICE.—The Committee shall determine the fair mar-
ket price of products and services contained on the procurement list that 
are offered for sale to the Federal Government by a qualified nonprofit 
agency for the blind or a qualified nonprofit agency for other severely dis-
abled. The Committee from time to time shall revise its price determinations 
with respect to those products and services in accordance with changing 
market conditions. 
(c) CENTRAL NONPROFIT AGENCY OR AGENCIES.—The Committee shall 
designate a central nonprofit agency or agencies to facilitate the distribu-
tion, by direct allocation, subcontract, or any other means, of orders of the 
Federal Government for products and services on the procurement list 
among qualified nonprofit agencies for the blind or qualified nonprofit agen-
cies for other severely disabled. 
(d) REGULATIONS.—The Committee— 
(1) may prescribe regulations regarding specifications for products 
and services on the procurement list, the time of their delivery, and 
other matters as necessary to carry out this chapter; and 
(2) shall prescribe regulations providing that when the Federal Gov-
ernment purchases products produced and offered for sale by qualified 
nonprofit agencies for the blind or qualified nonprofit agencies for 
other severely disabled, priority shall be given to products produced and 
offered for sale by qualified nonprofit agencies for the blind. 
(e) STUDY
AND EVALUATION
OF ACTIVITIES.—The Committee shall 
make a continuing study and evaluation of its activities under this chapter 
to ensure effective and efficient administration of this chapter. The Com-
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177 
mittee on its own or in cooperation with other public or nonprofit private 
agencies may study— 
(1) problems related to the employment of the blind and other se-
verely disabled individuals; and 
(2) the development and adaptation of production methods that 
would enable a greater utilization of the blind and other severely dis-
abled individuals. 
§ 8504. Procurement requirements for the Federal Govern-
ment 
(a) IN GENERAL.—An entity of the Federal Government intending to pro-
cure a product or service on the procurement list referred to in section 8503 
of this title shall procure the product or service from a qualified nonprofit 
agency for the blind or a qualified nonprofit agency for other severely dis-
abled in accordance with regulations of the Committee and at the price the 
Committee establishes if the product or service is available within the period 
required by the entity. 
(b) EXCEPTION.—This section does not apply to the procurement of a 
product that is available from an industry established under chapter 307 
of title 18 and that is required under section 4124 of title 18 to be procured 
from that industry. 
§ 8505. Audit 
For the purpose of audit and examination, the Comptroller General shall 
have access to the books, documents, papers, and other records of— 
(1) the Committee and of each central nonprofit agency the Com-
mittee 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 activities 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: 
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178 
(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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179 
(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. 
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180 
(b) EXCEPTION.—This section does not apply to a prime contract for the 
acquisition of commercial items (as defined in section 103 of this title). 
§ 8705. Administrative offsets 
(a) DEFINITION.—In this section, the term ‘‘contracting officer’’ has the 
meaning given that term in chapter 69 of this title. 
(b) OFFSET AUTHORITY.—A contracting officer of a contracting agency 
may offset the amount of a kickback provided, accepted, or charged in viola-
tion of section 8702 of this title against amounts the Federal Government 
owes the prime contractor under the prime contract to which the kickback 
relates. 
(c) DUTIES OF PRIME CONTRACTOR.— 
(1) WITHHOLDING AND PAYING OVER OR RETAINING AMOUNTS.—On 
direction of a contracting officer of a contracting agency with respect 
to a prime contract, the prime contractor shall withhold from amounts 
owed to a subcontractor under a subcontract of the prime contract the 
amount of a kickback which was or may be offset against the prime 
contractor under subsection (b). The contracting officer may order that 
amounts withheld— 
(A) be paid over to the contracting agency; or 
(B) be retained by the prime contractor if the Federal Govern-
ment has already offset the amount against the prime contractor. 
(2) NOTICE.—The prime contractor shall notify the contracting offi-
cer when an amount is withheld and retained under paragraph (1)(B). 
(d) OFFSET, DIRECTION, OR ORDER IS CLAIM OF FEDERAL GOVERN-
MENT.—An offset under subsection (b) or a direction or order of a con-
tracting officer under subsection (c) is a claim by the Federal Government 
for the purposes of chapter 69 of this title. 
§ 8706. Civil actions 
(a) AMOUNT.—The Federal Government in a civil action may recover 
from a person— 
(1) that knowingly engages in conduct prohibited by section 8702 of 
this title a civil penalty equal to— 
(A) twice the amount of each kickback involved in the violation; 
and 
(B) not more than $10,000 for each occurrence of prohibited 
conduct; and 
(2) whose employee, subcontractor, or subcontractor employee vio-
lates section 8702 of this title by providing, accepting, or charging a 
kickback a civil penalty equal to the amount of that kickback. 
(b) STATUTE OF LIMITATIONS.—A civil action under this section must be 
brought within 6 years after the later of the date on which— 
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181 
(1) the prohibited conduct establishing the cause of action occurred; 
or 
(2) the Federal Government first knew or should reasonably have 
known that the prohibited conduct had occurred. 
§ 8707. Criminal penalties 
A person that knowingly and willfully engages in conduct prohibited by 
section 8702 of this title shall be fined under title 18, imprisoned for not 
more than 10 years, or both. 
SEC. 4. CONFORMING AMENDMENT. 
Section 2410i(b)(1) of title 10, United States Code, is amended by strik-
ing ‘‘small purchase threshold’’ and substituting ‘‘simplified acquisition 
threshold’’. 
SEC. 5. CONFORMING CROSS-REFERENCES. 
(a) TITLE 5.—Title 5, United States Code, is amended as follows: 
(1) In section 504(b)(1)(C)(ii)— 
(A) strike ‘‘section 6 of the Contract Disputes Act of 1978 (41 
U.S.C. 605)’’ and substitute ‘‘section 6903 of title 41’’; and 
(B) strike ‘‘section 8 of that Act (41 U.S.C. 607)’’ and sub-
stitute ‘‘section 6905 of title 41’’. 
(2) In section 551(1)(H), strike ‘‘chapter 2 of title 41;’’. 
(3) In section 595(c)(10), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949, as amended (41 U.S.C. 251– 
260)’’ and substitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 701(b)(1)(H), strike ‘‘chapter 2 of title 41;’’. 
(5) In section 3109(b)(3), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(6) In section 3374(c)(2), strike ‘‘section 27 of the Office of Federal 
Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 
(7) In section 3704(b)(2)(G), strike ‘‘section 27 of the Office of Fed-
eral Procurement Policy Act’’ and substitute ‘‘chapter 21 of title 41’’. 
(8) In section 4105, strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(9) In section 5102(c)(30), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’. 
(10) In section 5372a— 
(A) in subsection (a)(1), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’; and 
(B) in subsection (a)(2), strike ‘‘section 8 of the Contract Dis-
putes Act of 1978’’ and substitute ‘‘section 6905 of title 41’’. 
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182 
(11) In section 7342(e)(1), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(12) In section 8709(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(13) In section 8714a(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(14) In section 8714b(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(15) In section 8714c(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(16) In section 8902(a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’. 
(17) In section 8953(a)(1), strike ‘‘section 5’’ and substitute ‘‘sec-
tion 6101(b) to (d)’’. 
(18) In section 8983(a)(1), strike ‘‘section 5’’ and substitute ‘‘sec-
tion 6101(b) to (d)’’. 
(19) In section 9003— 
(A) in subsection (a), strike ‘‘section 5’’ and substitute ‘‘section 
6101(b) to (d)’’; 
(B) in subsection (c)(3), before subparagraph (A), strike ‘‘the 
Contract Disputes Act of 1978’’ and substitute ‘‘chapter 69 of 
title 41’’; 
(C) in subsection (c)(3)(A), strike ‘‘section 8(c) of such Act’’ 
and substitute ‘‘section 6905(c) of title 41’’; and 
(D) in subsection (c)(3)(B), strike ‘‘section 10(a)(1) of such 
Act’’ and substitute ‘‘section 6904(b)(1) of title 41’’. 
(20) In section 9009, strike ‘‘section 26(f) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f))’’ and substitute ‘‘section 
1502(a) and (b) of title 41’’. 
(b) TITLE 10.—Title 10, United States Code, is amended as follows: 
(1) In section 133(c)(1), strike ‘‘section 16(3) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 414(3))’’ and substitute ‘‘sec-
tion 1702(c) of title 41’’. 
(2) In section 2013(a), strike ‘‘section 3709 of the Revised Statutes 
(41 U.S.C. 5)’’ and substitute ‘‘section 6101(b)–(d) of title 41’’. 
(3) In section 2194(b)(2), strike ‘‘title III of the Federal Property 
and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)’’ and 
substitute ‘‘part C of subtitle I of title 41’’. 
(4) In section 2201— 
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