Final Exam - Proc 5860

PROC 5860 FINAL EXAM – Spring I Semester - 2013

1.) (25pts) (please answer in no more than 2 double spaced pages)

You are serving as Contracting Officer at Agency X. You were at a trade show doing some market research and you ran into the owner of a small construction firm that does a lot of business with your Base. He comments to you that he is very excited that he just won a bid to serve as a subcontractor on a multi-million dollar hospital complex. You are aware of the project because Acme Contracting was recently awarded the project by your Agency Source Selection Authority. He tells you how excited that he is to be on the project and that the fee he paid to Acme Contracting was well worth it to be on such a big job! You go back to your office and look at your FAR. Define the Rule, your analysis and recommended solution.

FAR 3.502-2  Subcontractor kickbacks:

The Anti-Kickback Act of 1986 (41 U.S.C. 51-58) was passed to deter subcontractors from making payments and contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract or a subcontract relating to a prime contract. The Act—

(a) Prohibits any person from—

(1) Providing, attempting to provide, or offering to provide any kickback;

(2) Soliciting, accepting, or attempting to accept any kickback; or

(3) Including, directly or indirectly, the amount of any kickback in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to the United States.

(b) Imposes criminal penalties on any person who knowingly and willfully engages in the prohibited conduct addressed in paragraph (a) of this subsection.

(c) Provides for the recovery of civil penalties by the United States from any person who knowingly engages in such prohibited conduct and from any person whose employee, subcontractor, or subcontractor employee provides,...