Penalties and administrative actions

41 U.S.C. § 2105

• Title: 41 — Public Contracts
• Chapter: 21 — RESTRICTIONS ON OBTAINING AND DISCLOSING CERTAIN INFORMATION

Text

(a) Criminal Penalties.—A person that violates section 2102 of this title to exchange information covered by section 2102 of this title for anything of value or to obtain or give a person a competitive advantage in the award of a Federal agency procurement contract shall be fined under title 18, imprisoned for not more than 5 years, or both.
(b) Civil Penalties.—The Attorney General may bring a civil action in an appropriate district court of the United States against a person that engages in conduct that violates section 2102, 2103, or 2104 of this title. On proof of that conduct by a preponderance of the evidence—
(1) an individual is liable to the Federal Government for a civil penalty of not more than $50,000 for each violation plus twice the amount of compensation that the individual received or offered for the prohibited conduct; and
(2) an organization is liable to the Federal Government for a civil penalty of not more than $500,000 for each violation plus twice the amount of compensation that the organization received or offered for the prohibited conduct.
(c) Administrative Actions.—
(1) Types of action that federal agency may take.—A Federal agency that receives information that a contractor or a person has violated section 2102, 2103, or 2104 of this title shall consider taking one or more of the following actions, as appropriate:
(A) Canceling the Federal agency procurement, if a contract has not yet been awarded.
(B) Rescinding a contract with respect to which—
(i) the contractor or someone acting for the contractor has been convicted for an offense punishable under subsection (a); or
(ii) the head of the agency that awarded the contract has determined, based on a preponderance of the evidence, that the contractor or a person acting for the contractor has engaged in conduct constituting the offense.
(C) Initiating a suspension or debarment proceeding for the protection of the Federal Government in accordance with procedures in the Federal Acquisition Regulation.
(D) Initiating an adverse personnel action, pursuant to the procedures in chapter 75 of title 5 or other applicable law or regulation.
(2) Amount government entitled to recover.—When a Federal agency rescinds a contract pursuant to paragraph (1)(B), the Federal Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended under the contract.
(3) Present responsibility affected by conduct.—For purposes of a suspension or debarment proceeding initiated pursuant to paragraph (1)(C), engaging in conduct constituting an offense under section 2102, 2103, or 2104 of this title affects the present responsibility of a Federal Government contractor or subcontractor.

History

(Pub. L. 111–350, §3, Jan. 4, 2011, 124 Stat. 3730.)

Editorial Notes

In subsection (a), the word "violates" is substituted for "engages in conduct constituting a violation of" to eliminate unnecessary words.
In subsection (b), the words "liable to the Federal Government for" are substituted for "subject to" for consistency in the revised title and with other titles of the United States Code.
In subsection (c)(1), the words "has violated" are substituted for "has engaged in conduct constituting a violation of" to eliminate unnecessary words.