WSU Policies and Procedures

14.18 / Anti-Kickback

Purpose:
To state University policy with regard to the establishment of procedures designed to prevent and detect possible violations of 41 U.S. Code Sections 51-58 (the Anti-Kickback Act of 1986).

Preamble:
The Anti-Kickback Act of 1986 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 contract or contractual action entered into by the United States for the purpose of obtaining supplies, materials, equipment, or service of any kind.

Policy Statement:

1. When the University has reasonable grounds to believe that a violation of the Anti-Kickback Act of 1986 may have occurred, the University shall promptly report in writing the possible violation. Such reports shall be made to the inspector general of the contracting department or agency of the United States, the head of the contracting department or agency of the United States if the department or agency does not have an inspector general, or the Department of Justice.

2. The University shall cooperate fully with any Federal agency investigating a possible violation of the Anti-Kickback Act of 1986.

3. The University shall incorporate the following language in all subcontracts entered into by the University to obtain supplies, materials, equipment, or service of any kind in connection with a University contract with a department or agency of the United States that exceed $100,000.

a. When the university has reasonable grounds to believe that a violation of the Anti-Kickback Act of 1986 may have occurred, the university shall promptly report in writing the possible violation. Such reports shall be made to the inspector general of the contracting department or agency of the United States, the head of the contracting department or agency of the United States if the department or agency does not have an inspector general, or the Department of Justice.
b. The university shall cooperate fully with any Federal agency investigating a possible violation of the Anti-Kickback Act of 1986.

c. The Contracting Officer may (1) offset the amount of the kickback against any monies owed by the United States under the prime contract and/or (2) direct that the Prime Contractor withhold from sums owed a contractor under the prime contract the amount of the kickback. The Contracting Officer may order that monies withheld under subdivision c. (1) of this clause be paid over to the United States Government unless the Government has already offset those monies under subdivision c. (2) of this clause. In either case, the Prime Contractor shall notify the Contracting Officer when the monies are withheld.

d. The university agrees to incorporate the substance of this clause, including subparagraph d., in all subcontracts under this contract which exceed $100,000.

Implementation:
The Vice President for Administration and Finance shall have primary responsibility for the publication and distribution of this University policy.

This policy shall be included in the WSU Policies and Procedures Manual and shared with appropriate constituencies of the University.

Effective Date:
July 1, 1998

(Note: The reader should also refer to the Execution of Contracts Policy at Section 1.04 of this manual.)

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