Anti-Kickback Act of 1986
The Anti-Kickback Act of 1986, 41 U.S.C. § 51 et seq.,
modernized and closed the loopholes of previous statutes applying to
contractors. The 1986 law attempts to make the anti-kickback statute a more
useful prosecutorial tool by expanding the definition of prohibited conduct
by making the statute applicable to a broader range of persons involved in
government subcontracting. Prosecutions under these statutes must establish
- Prohibited conduct--the Act prohibits attempted as well as
completed "kickbacks," which include any money, fees, commission, credit,
gratuity, thing of value, or compensation of any kind. The act also
that the inclusion of kickback amounts in contract prices is prohibited
- Purpose of kickback--The Act requires that the purpose of the kickback
for improperly obtaining or rewarding favorable treatment. It is intended
embrace the full range of government contracting. Prior to 1986, the
was required to be for the inducement or acknowledgement of a subcontract.
- Covered class of "kickback" recipients--The Act prohibits "kickbacks"
prime contractors, prime contractor employees, subcontractors, and
employees. These terms are defined in the Act.
- Type of contract--The Act defines kickbacks to include payments under
government contract. Prior to this legislation, the statutes' applicability
limited to negotiated contracts.
- Knowledge and willfulness--The Act requires one to knowingly and
engage in the prohibited conduct for the imposition of criminal
The Federal Procurement Fraud Unit in the Fraud Section, Criminal
has sample indictments and will handle inquiries or questions about this
and will provide guidance on a variety of procurement fraud issues.
[cited in USAM 9-42.001]