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41 U.S.C. § 2104 — Prohibition on former official’s acceptance of compensation from contractor

Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 2104 — Prohibition on former official’s acceptance of compensation from contractor

**(a) Prohibition.—** A former official of a Federal agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within one year after the official— (1) served, when the contractor was selected or awarded a contract, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in excess of $10,000,000; (2) served as the program manager, deputy program manager, or administrative contracting officer for a contract in excess of $10,000,000 awarded to that contractor; or (3) personally made for the Federal agency a decision to— (A) award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor; (B) establish overhead or other rates applicable to one or more contracts for that contractor that are valued in excess of $10,000,000; (C) approve issuance of one or more contract payments in excess of $10,000,000 to that contractor; or (D) pay or settle a claim in excess of $10,000,000 with that contractor. **(b) When Compensation May Be Accepted.—** Subsection (a) does not prohibit a former official of a Federal agency from accepting compensation from a division or affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in paragraph (1), (2), or (3) of subsection (a). **(c) Implementing Regulations.—** Regulations implementing this section shall include procedures for an official or former official of a Federal ag

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Stable record: federal_law:legal_authorities:record_usc_3045313b794ddefa78617894
Source file: Laws/federal/codes/united-states-code/title-41/section-2104-prohibition-on-former-officials-acceptance-of-compensation-from-contract--bb108e89ec.md
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Source location: Title 41, Chapter 21, § 2104; chapter-021-chapter-21.md

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**(a) Prohibition.—** A former official of a Federal agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within one year after the official— (1) served, when the contractor was selected or awarded a contract, as the procuring contracting officer, the source selection authority, a member of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in excess of $10,000,000; (2) served as the program manager, deputy program manager, or administrative contracting officer for a contract in excess of $10,000,000 awarded to that contractor; or (3) personally made for the Federal agency a decision to— (A) award a contract, subcontract, modification of a contract or subcontract, or a task order or delivery order in excess of $10,000,000 to that contractor; (B) establish overhead or other rates applicable to one or more contracts for that contractor that are valued in excess of $10,000,000; (C) approve issuance of one or more contract payments in excess of $10,000,000 to that contractor; or (D) pay or settle a claim in excess of $10,000,000 with that contractor. **(b) When Compensation May Be Accepted.—** Subsection (a) does not prohibit a former official of a Federal agency from accepting compensation from a division or affiliate of a contractor that does not produce the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in paragraph (1), (2), or (3) of subsection (a). **(c) Implementing Regulations.—** Regulations implementing this section shall include procedures for an official or former official of a Federal agency to request advice from the appropriate designated agency ethics official regarding whether the official or former official is or would be precluded by this section from accepting compensation from a particular contractor. **(d) Persons Subject to Penalties.—** The following are subject to the penalties and administrative actions set forth in [section 2105 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section2105&num=0&edition=prelim): (1) A former official who knowingly accepts compensation in violation of this section. (2) A contractor that provides compensation to a former official knowing that the official accepts the compensation in violation of this section.

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 2105 — Penalties and administrative actions

**(a) Criminal Penalties.—** A person that violates [section 2102 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section2102&num=0&edition=prelim) to exchange information covered by [section 2102 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section2102&num=0&edition=prelim) 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 contracto

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 2104 — Prohibition on former official’s accept-

Page 68 TITLE 41—PUBLIC CONTRACTS § 2104 section (b)(1) of that section may be withheld from disclosure to the public. (c) PERSONS SUBJECT TO PENALTIES.—The fol- lowing are subject to the penalties and adminis- trative actions set forth in section 2105 of this title: (1) An official who knowingly fails to comply with the requirements of this section. (2) A bidder or offeror that engages in em- ployment discussions with an official who is subject to the restrictions of this section, knowing that the official has not complied with paragraph (1) or (2) of subsection (a). (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3728.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 2103(a) ........ 41:423(c)(1). Pub. L. 93–400, § 27(c), 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. 660. 2103(b) ........ 41:423(c)(2). 2103(c) ........ 41:423(c)(3), (4). § 2104. Prohibition on former official’s accept- ance of compensation from contractor (a) PROHIBITION.—A former official of a Fed- eral agency may not accept compensation from a contractor as an employee, officer, director, or consultant of the contractor within one year after the official— (1) served, when the contractor was selected or awarded a contract, as the procuring con- tracting officer, the source selection author- ity, a member of the source selection evalua- tion board, or the

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