---
kind: "section"
citation: "41 U.S.C. § 8705"
title: "41"
title_heading: "Public Contracts"
number: "8705"
heading: "Administrative offsets"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/41/8705"
units:
  - "Subtitle IV — Miscellaneous"
  - "Chapter 87 — Kickbacks"
---

# §8705. Administrative offsets

- (a) **Definition.—** In this section, the term “contracting officer” has the meaning given that term in [chapter 71](/usc/41/chstIII/ch71.md) of this title.
- (b) **Offset Authority.—** A contracting officer of a [contracting agency](/usc/41/8701.md?p=1) may offset the amount of a [kickback](/usc/41/8701.md?p=2) provided, accepted, or charged in violation of [section 8702 of this title](/usc/41/8702.md) against amounts the [Federal Government](/usc/41/8501.md?p=4) owes the [prime contractor](/usc/41/8701.md?p=5) under the [prime contract](/usc/41/8701.md?p=4) to which the [kickback](/usc/41/8701.md?p=2) relates.
- (c) **Duties of Prime Contractor.—**
  - (1) **Withholding and paying over or retaining amounts.—** On direction of a contracting officer of a [contracting agency](/usc/41/8701.md?p=1) with respect to a [prime contract](/usc/41/8701.md?p=4), the [prime contractor](/usc/41/8701.md?p=5) shall withhold from amounts owed to a [subcontractor](/usc/41/8701.md?p=8) under a [subcontract](/usc/41/8701.md?p=7) of the [prime contract](/usc/41/8701.md?p=4) the amount of a [kickback](/usc/41/8701.md?p=2) which was or may be offset against the [prime contractor](/usc/41/8701.md?p=5) under [subsection (b)](#b). The contracting officer may order that amounts withheld—
    - (A) be paid over to the [contracting agency](/usc/41/8701.md?p=1); or
    - (B) be retained by the [prime contractor](/usc/41/8701.md?p=5) if the [Federal Government](/usc/41/8501.md?p=4) has already offset the amount against the [prime contractor](/usc/41/8701.md?p=5).
  - (2) **Notice.—** The [prime contractor](/usc/41/8701.md?p=5) shall notify the contracting officer when an amount is withheld and retained under [paragraph (1)(B)](#c-1-B).
- (d) **Offset, Direction, or Order is Claim of Federal Government.—** An offset under [subsection (b)](#b) or a direction or order of a contracting officer under [subsection (c)](#c) is a claim by the [Federal Government](/usc/41/8501.md?p=4) for the purposes of [chapter 71](/usc/41/chstIII/ch71.md) of this title.

## Source credit

(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3840.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 8705(a) | 41:56(d). | Mar. 8, 1946, ch. 80, § 6, 60 Stat. 37; Pub. L. 86–695, Sept. 2, 1960, 74 Stat. 740; Pub. L. 99–634, § 2(a), Nov. 7, 1986, 100 Stat. 3524. |
| 8705(b) | 41:56(a). |  |
| 8705(c) | 41:56(b). |  |
| 8705(d) | 41:56(c). |  |