Title 41Public ContractsRelease 119-73

§2105 Penalties and administrative actions

Title 41 › Subtitle Subtitle I— - Federal Procurement Policy › Chapter CHAPTER 21— - RESTRICTIONS ON OBTAINING AND DISCLOSING CERTAIN INFORMATION › § 2105

Last updated Apr 6, 2026|Official source

Summary

Trading or sharing covered procurement information for money or to gain a contract advantage is a crime. A person who does that can be fined under title 18, jailed for up to 5 years, or both. The Attorney General can sue in federal court for violations of these procurement rules. If the facts show it is more likely than not that someone broke the rules, an individual can be fined up to $50,000 for each violation plus twice any payment they got or offered, and an organization can be fined up to $500,000 for each violation plus twice any payment it got or offered. When a federal agency learns of such conduct, it must consider actions like canceling the procurement before award; rescinding a contract if the contractor is convicted or the agency head finds, more likely than not, the offense occurred; starting suspension or debarment under the Federal Acquisition Regulation; or taking personnel action under chapter 75 or other law. If a contract is rescinded, the government can recover the money it spent on that contract in addition to any penalties, and the conduct harms the contractor’s present responsibility in suspension or debarment proceedings.

Full Legal Text

Title 41, §2105

Public Contracts — Source: USLM XML via OLRC

(a)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)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)(1)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)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)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.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 2105(a)41:423(e)(1).Pub. L. 93–400, § 27(e), as added Pub. L. 100–679, § 6(a), Nov. 17, 1988, 102 Stat. 4063; Pub. L. 101–189, title VIII, § 814(a)–(d)(1), Nov. 29, 1989, 103 Stat. 1495; Pub. L. 101–510, title XIV, § 1484(l)(6), Nov. 5, 1990, 104 Stat. 1720; Pub. L. 102–25, title VII, § 705(i), Apr. 6, 1991, 105 Stat. 121; Pub. L. 103–355, title VIII, § 8301(e), Oct. 13, 1994, 108 Stat. 3397; Pub. L. 104–106, title XLIII, § 4304(a), Feb. 10, 1996, 110 Stat. 661. 2105(b)41:423(e)(2). 2105(c)41:423(e)(3). 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.

Reference

Citations & Metadata

Citation

41 U.S.C. § 2105

Title 41Public Contracts

Last Updated

Apr 6, 2026

Release point: 119-73