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Title 41, Public ContractsRelease 119-110

§8705 Administrative Offsets

Title 41 › Subtitle IV — Miscellaneous › CHAPTER 87 — KICKBACKS › § 8705

Last updated Sep 22, 2026|Official source

Summary

Allows a contracting officer (the official defined in chapter 71) to deduct any kickback given, accepted, or charged in violation of section 8702 from money the government owes a prime contractor on that contract. If the contracting officer orders it, the prime contractor must withhold the same amount from a subcontractor’s pay. The officer can order the withheld money paid to the agency or kept by the prime contractor if the government already deducted it. Those deductions and orders are government claims under chapter 71.

Full Legal Text

Title 41, §8705

Public Contracts, Source: USLM XML via OLRC

(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.— (d) Offset, Direction, or Order is Claim of Federal Government.—
(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).

Legislative History

Notes & Related Subsidiaries

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).

Reference

Citations & Metadata

Citation

41 U.S.C. § 8705

Title 41, Public Contracts

Last Updated

Sep 22, 2026

Release point: 119-110