41 U.S.C. § 56 : US Code - Section 56: Administrative offsets

Search 41 U.S.C. § 56 : US Code - Section 56: Administrative offsets

(a) Offset authority
A contracting officer of a contracting agency may offset the
amount of a kickback provided, accepted, or charged in violation of
section 53 of this title against any moneys owed by the United
States to the prime contractor under the prime contract to which
such kickback relates.
(b) Duties of prime contractor
(1) Upon direction of a contracting officer of a contracting
agency with respect to a prime contract, the prime contractor shall
withhold from any sums owed to a subcontractor under a subcontract
of the prime contract the amount of any kickback which was or may
be offset against that prime contractor under subsection (a) of
this section.
(2) Such contracting officer may order that sums withheld under
paragraph (1) -
(A) be paid over to the contracting agency; or
(B) if the United States has already offset the amount of such
sums against that prime contractor, be retained by the prime
contractor.
(3) The prime contractor shall notify the contracting officer
when an amount is withheld and retained under paragraph (2)(B).
(c) Claim of Government
An offset under subsection (a) of this section or a direction or
order of a contracting officer under subsection (b) of this section
is a claim by the Government for the purposes of the Contract
Disputes Act of 1978 [41 U.S.C. 601 et seq.].
(d) "Contracting officer" defined
As used in this section, the term "contracting officer" has the
meaning given that term for the purposes of the Contract Disputes
Act of 1978 [41 U.S.C. 601 et seq.].