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LegalText 41 U.S.C. § 8705 Administrative offsets us united_states_code code_section 41 PUBLIC CONTRACTS 87 KICKBACKS 8705 41 U.S.C. § 8705 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc41@119-100.zip /us/usc/t41/s8705 data/legal/raw/us/code/title-41/usc41.xml 85f1bef9d05bab99d3c972d80f55c93fd148f238a6fa46476c0a7385bc3114ff 0977ff7e7fefd99bbd25a86e009a9e4c2707301ec8c49233d17b6604e38702e3 bc4e70259988a6a9cad551a6788718efc4ae980699ffbe90a22a7576af586a8c 2026-07-04 official
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41 U.S.C. § 8705 - Administrative offsets

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.

(Pub. L. 111350, § 3, Jan. 4, 2011, 124 Stat. 3840.)

Notes

Historical and Revision Notes RevisedSectionSource (U.S. Code)Source (Statutes at Large) 8705(a)41:56(d).Mar. 8, 1946, ch. 80, § 6, 60 Stat. 37; Pub. L. 86695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 99634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. 8705(b)41:56(a). 8705(c)41:56(b). 8705(d)41:56(c).