PUBLIC LAW 99-634—NOV. 7, 1986
100 STAT. 3525
"(bKl) Upon direction of a contracting officer of a contracting agency with respect to a prime contract, the prime contractor shall withhold from any sums owed to a subcontractor under a subcontract of the prime contract the amount of any kickback which was or may be offset against that prime contractor under subsection (a). "(2) Such contracting officer may order that sums withheld under paragraph (1)— "(A) be paid over to the contracting agency; or "(B) if the United States has already offset the amount of such sums against that prime contractor, be retained by the prime contractor. "(3) The prime contractor shall notify the contracting officer when an amount is withheld and retained under paragraph (2)(B). '(c) An offset under subsection (a) or a direction or order of a Claims. contracting officer under subsection (b) is a claim by the Government for the purposes of the Contract Disputes Act of 1978. 41 USC 60i note. "(d) As used in this section, the term 'contracting officer' has the meaning given that term for the purposes of the Contract Disputes Act of 1978. "CONTRACTOR RESPONSIBIUTIES
"SEC. 7. (a) Each contracting agency shall include in each prime 41 USC 57. contract awarded by such agency a requirement that the prime contractor shall have in place and follow reasonable procedures designed to prevent and detect violations of section 3 in its own operations and direct business relationships. "(b) Each contracting agency shall include in each prime contract awarded by such agency a requirement that the prime contractor shall cooperate fully with any Federal Government agency investigating a violation of section 3. "(c)(l)(A) Whenever a prime contractor or subcontractor has Reports. reasonable grounds to believe that a violation of section 3 may have occurred, the prime contractor or subcontractor shall promptly report the possible violation in writing. (B) A contractor shall make the reports required by subpara- Reports. graph (A) to the inspector general of the contracting Eigency, the head of the contracting agency if the agency does not have an inspector general, or the Department of Justice. '(2) In the case of an administrative or contractual action to suspend or debar any person who is eligible to enter into contracts with the Federal Government, evidence that such person has supplied information to the United States pursuant to paragraph (1) shall be favorable evidence of such person's responsibility for the purposes of Federal procurement laws and regulations. INSPECTION AUTHORITY
"SEC. 8. For the purpose of ascertaining whether there has been a violation of section 3 with respect to any prime contract, the General Accounting Office and the inspector general of the contracting agency, or a representative of such contracting agency designated by the head of such 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 any electronic data or records, of any prime contractor or subcontractor under a prime contract awarded by such agency.".
41 USC 58.