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2021 US Code
Title 41 - Public Contracts
Subtitle IV - Miscellaneous
Chapter 87 - Kickbacks
Sec. 8705 - Administrative offsets

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Citation 41 U.S.C. § 8705 (2021)
Section Name §8705. Administrative offsets
Section Text

(a) Definition.—In this section, the term "contracting officer" has the meaning given that term in chapter 71 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 violation 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 Government has already offset the amount against the prime contractor.


(2) Notice.—The prime contractor shall notify the contracting officer when an amount is withheld and retained under paragraph (1)(B).


(d) Offset, Direction, or Order is Claim of Federal Government.—An offset under subsection (b) or a direction or order of a contracting officer under subsection (c) is a claim by the Federal Government for the purposes of chapter 71 of this title.
Source Credit

(Pub. L. 111–350, §3, Jan. 4, 2011, 124 Stat. 3840.)
Editorial Notes
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large)
8705(a) 41:56(d). Mar. 8, 1946, ch. 80, §6, 60 Stat. 37; Pub. L. 86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 99–634, §2(a), Nov. 7, 1986, 100 Stat. 3524.
8705(b) 41:56(a).
8705(c) 41:56(b).
8705(d) 41:56(c).
Publication Title United States Code, 2018 Edition, Supplement 3, Title 41 - PUBLIC CONTRACTS
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 41 - PUBLIC CONTRACTS
Subtitle IV - Miscellaneous
CHAPTER 87 - KICKBACKS
Sec. 8705 - Administrative offsets
Contains section 8705
Date 2021
Laws In Effect As Of Date January 3, 2022
Positive Law Yes
Disposition standard
Statutes at Large References 60 Stat. 37
74 Stat. 740
100 Stat. 3524
124 Stat. 3840
Public Law References Public Law 86-695, Public Law 99-634, Public Law 111-350
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