B-135090, SEP 29, 1961

B-135090: Sep 29, 1961

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OTHERS CONCERNED: YOUR ATTENTION IS INVITED TO THE AMENDMENT OF THE SO-CALLED ANTI KICKBACK ACT (41 U.S.C. 51-54). THE ANTI-KICKBACK STATUTE AS ORIGINALLY ENACTED APPLIED ONLY TO THOSE GOVERNMENT CONTRACTS WHICH WERE ON A COST-PLUS-A-FIXED-FEE OR OTHER COST REIMBURSABLE BASIS. THE RETROSPECTIVE FEATURE OF THE STATUTE WAS RETAINED AND. ESTABLISHMENT OR AGENCY TO HAVE THIS MATTER BROUGHT TO THE ATTENTION OF CONTRACTING OFFICIALS AND AUDIT REPRESENTATIVES TO ASSURE THE CONSIDERATION OF THESE NEW PROVISIONS IN THE REVIEW AND ADMINISTRATION OF CONTRACTS.

B-135090, SEP 29, 1961

PRECIS-UNAVAILABLE

TO THE HEADS OF DEPARTMENTS, INDEPENDENT ESTABLISHMENTS, AGENCIES, AND OTHERS CONCERNED:

YOUR ATTENTION IS INVITED TO THE AMENDMENT OF THE SO-CALLED ANTI KICKBACK ACT (41 U.S.C. 51-54), BY PUBLIC LAW 86-695, 74 STAT. 740.

THE ANTI-KICKBACK STATUTE AS ORIGINALLY ENACTED APPLIED ONLY TO THOSE GOVERNMENT CONTRACTS WHICH WERE ON A COST-PLUS-A-FIXED-FEE OR OTHER COST REIMBURSABLE BASIS, WHEREAS THE AMENDMENT EXTENDED ITS COVERAGE TO ALL PRIME CONTRACTS NEGOTIATED WITH THE UNITED STATES.

THE STATUTE PROVIDES FOR THE RECOVERY FROM THE SUBCONTRACTOR OR THE RECIPIENT OF THE AMOUNT OF ANY FEE, KICKBACK, GIFT OR GRATUITY PAID BY A SUBCONTRACTOR TO ANY EMPLOYEE OR AGENT OF THE PRIME CONTRACTOR OR ANY HIGHER TIER SUBCONTRACTOR AS AN INDUCEMENT FOR OR ACKNOWLEDGMENT OF A SUBCONTRACT OR ORDER BY SET-OFF FROM ANY MONIES OWED THE SUBCONTRACTOR EITHER DIRECTLY BY THE UNITED STATES OR BY THE PRIME CONTRACTOR UNDER ANY NEGOTIATED CONTRACT. THE RETROSPECTIVE FEATURE OF THE STATUTE WAS RETAINED AND, CONSEQUENTLY, IT APPLIES IN ITS CIVIL (BUT NOT CRIMINAL) ASPECTS TO CONTRACTS NEGOTIATED PRIOR TO ITS AMENDMENT.

WE REQUEST THAT WE BE ADVISED OF THE PROCEDURES INSTITUTED BY YOUR DEPARTMENT, ESTABLISHMENT OR AGENCY TO HAVE THIS MATTER BROUGHT TO THE ATTENTION OF CONTRACTING OFFICIALS AND AUDIT REPRESENTATIVES TO ASSURE THE CONSIDERATION OF THESE NEW PROVISIONS IN THE REVIEW AND ADMINISTRATION OF CONTRACTS. ALSO, PLEASE INFORM US OF ANY SUSPECTED VIOLATIONS OF THE STATUTE DISCOVERED BY YOUR RESPECTIVE OFFICES. COMMUNICATIONS IN COMPLIANCE WITH THIS REQUEST SHOULD BE ADDRESSED TO THE GENERAL COUNSEL, U.S. GENERAL ACCOUNTING OFFICE, WASHINGTON 25, D.C. ..END :