An Act to amend the ""Anti-Kickback Statute"" to extend it to all negotiated contracts.
PL 86-695 (S.3487), enacted 09/02/1960

740 
PUBLIC LAW 86-695-SEPT. 2, 1960 
[74 STAT. 
Public Law 86-695 
AN ACT 
September 2, I960 
[S3487] 
To amend the "Anti-Kickback Statute" to extend it to all negotiated contracts. 
"Anti-Kickback 
Statute", 
amend-
ment. 
41 use 5 1-54. 
Negotiated con-
tracts. 
F e e s or kick-
backs prohibited. 
Recovery by U.S. 
Definitions. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the Act of 
March 8,1946 (60 Stat. 37), entitled "An Act to eliminate the practice 
by subcontractors, under cost-plus-a-fixed-fee or cost reimbursable 
contracts of the United States, of paying fees or kickbacks, or of 
granting gifts or gratuities to employees of a cost-plus-a-fixed-fee 
or cost reimbursable prime contractors or of higher tier subcontrac-
tors for the purpose of securing the award of subcontracts or orders" 
is hereby amended to read as follows: 
"That the payment of any fee, commission, or compensation of any 
kind or the granting of any gift or gratuity of any kind, either 
directly or indirectly, by or on behalf of a subcontractor, as herein-
after defined, (1) to any officer, partner, employee, or agent of a 
prime contractor holding a negotiated contract entered into by any 
department, agency, or establishment of the United States for the 
furnishing of supplies, materials, equipment or services of any kind 
whatsoever; or to any such prime contractor or (2) to any officer, 
partner, employee, or agent of a higher tier subcontractor holding a 
subcontract under the prime contract, or to any such subcontractor 
either as an inducement for the award of a subcontract or order from 
the prime contractor or any subcontractor, or as an acknowledgment 
of a subcontract or order previously awarded, is hereby prohibited. 
The amount of any such fee, commission, or compensation or the cost 
or expense of any such gratuity or gift, whether heretofore or here-
after paid or incurred by the subcontractor, shall not be charged, 
either directly or indirectly, as a part of the contract price charged^ 
by the subcontractor to the prime contractor or higher tier subcon-
tractor. The amount of any such fee, cost, or expense shall be recov-
erable on behalf of the United States from the subcontractor or the 
recipient thereof by setoff of moneys otherwise owing to the subcon-
tractor either directly by the United States, or by a prime contractor 
under any contract or oy an action in an appropriate court of the 
United States. Upon a showing that a subcontractor paid fees, com-
missions, or compensation or granted gifts or gratuities to an officer, 
partner, employee, or agent of a prime contractor or of another higher 
tier subcontractor, in connection with the award of a subcontract or 
order thereunder, it shall be conclusively presumed that the cost of 
such expense was included in the price of the subcontract or order and 
ultimately borne by the United States. Upon the direction of the 
contracting department or agency or of the General Accounting Office, 
the prime contractor shall withhold from sums otherwise due a sub-
contractor any amount reported to have been found to have been 
paid by a subcontractor as a fee, commission, or compensation or as 
a gift or gratuity to an officer, partner, employee, or agent of the 
prime contractor or another higher tier subcontractor. 
"SEC. 2. For the purpose of this Act, the term 'subcontractor' is 
defined as any person, including a corporation, partnership, or busi-
ness association of any kind, who holds an agreement or purchase 
order to perform all or any part of the work or to make or furnish any 
article or service required for the performance of a negotiated contract 
or of a subcontract entered thereunder; the term 'person' shall include 
any subcontractor, corporation, association, trust, joint-stock com-
pany, partnership, or individual; and the term 'negotiated contract' 
means made without formal advertising. 
74 
S T A T . ] 
PUBLIC LAW 86-697-SEPT. 2, 1960 
741 
"SEC. 3. For the purpose of ascertaining whether such fees, com-
missions, compensation, gifts, or gratuities have been paid or granted 
by a subcontractor, the General Accounting Office shall have the power 
to inspect the plants and to audit the books and records of any prime 
contractor or subcontractor engaged in the performance of a nego-
tiated contract. 
"SEC. 4. Any person who shall knowingly, directly or indirectly, 
make or receive any such prohibited payment shall be fined not more 
than $10,000 or be imprisoned for not more than two years, or both." 
Approved September 2, 1960. 
Power of GAD. 
Penalties. 
Public Law 86-696 
AN ACT 
To provide for the striking of medals in commemoration of the one hundredth 
anniversary of the founding of the State of Idaho as a Territory. 
September 2, 1960 
[S. 3160] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That in the com- 
^emenniai med-
memoration of the one hundredth anniversary of the founding of the ais. 
State of Idaho as a Territory, the Secretary of the Treasury is au-
thorized and directed to strike and furnish to the Idaho Territorial 
Centennial Commission not more than ten thousand medals of either 
silver or bronze or both, of a suitable size and with suitable emblems, 
devices, and inscriptions to be determined by the Idaho Territorial 
Centennial Commission subject to the approval of the Secretary of 
the Treasury. 
The medals shall be made and delivered at such times 
as required by the Commission in quantities of not less than two thou-
sand, but no medals shall be made after December 31, 1963. The 
medals shall be considered to be national medals within the meaning 
of section 3551 of the Revised Statutes. 
SEC. 2. (a) The Secretary of the Treasury shall cause such medals 
to be struck and furnished at no less than the estimated cost of manu-
facture, including labor, materials, dies, use of machinery, and over-
head expenses; and security satisfactory to the Director of the Mint 
shall be furnished to indemnify the United States for the full pay-
ment of such cost. 
(b) Upon authorization from the Idaho Territorial Centennial 
Commission, the Secretary of the Treasury shall cause duplicates in 
silver or bronze or both of such medal to be coined, and sold, under 
such regulations as he may prescribe, at a price sufficient to cover the 
cost thereof (including labor). 
Approved September 2, 1960. 
Public Law 86-697 
AN ACT 
To provide for the striking of medal in commemoration of Century 21 Exposition 
to be held in Seattle, Washington. 
September 2, 1960 
[S. 3532] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That, in commemo-
ration of Century 21 Exposition, to be held in Seattle, Washington, 
beginning April 21, 1962, and ending October 21,1962, the Secretary 
of the Treasury is authorized and directed to strike and furnish to the 
Centur}^ 21 Commission not more than five hundred thousand medals 
with suitable emblems, devices, and inscriptions to be determined by 
Century 21 E x -
position, 
Seattle, 
Wash. 
Medal.