Guidelines

Anti-Kickback Statement of Guidelines and Procedures

Statement

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.
 

Reason/Purpose for the Statement

To state University practice with regard to the establishment of procedures designed to prevent and detect possible violations of 41 USC 51-58 (The Anti-Kickback Act of 1986).
 

Guidelines

A kickback is a compensation of any kind that is directly or indirectly accepted by a University employee (faculty or staff) from a vendor, contractor or subcontractor who is competing for or doing business with the University for the purpose of influencing the award of a contract.  Kickbacks can include (but are not limited to):

• Money
• Fees
• Commissions
• Credits
• Gifts or gratuities
• Incentives or rebates
   

Procedures

Federal acquisition regulations require that the University follow reasonable procedures to prevent and detect violations of the Anti-Kickback Act.  At Stevens these procedures include:

• Creation of various institutional level Policies and Programs such as:
  • Creation of the Purchasing Offices' "Purchasing Conduct and Ethics" embodying the "National Association of Educational Procurement's (NEAP) Code of Ethics," "Accepting Gifts, Gratuities, Incentives and Rebates," "Anti-Kickback Statement of Guidelines and Procedures," "Employee-Vendor Relationships," and the establishment of levels of authority for approving transaction established by the Division of Finance and the Purchasing Office to detect any discrepancies or failure to follow required policies and procedures
• Stevens' Policies and Programs entitled "Code of Ethics (10.2.1)," "Conflict of Interest Policy (10.3.1)," "Conscientious Employee (Whistleblower) Policy (10.2.2 )," "Financial Irregularities (10.2.3 )," and the "Code of Business Ethics Program"
• Reporting to the affected federal agency 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.   
• Full cooperation with any Federal agency investigating a possible violation of the Anti-Kickback Act of 1986 and shall incorporate the substance of this paragraph in all subcontracts entered into 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 exceeds $150,000.
• Inclusion of the substance of 41 USC 51-58 in all subcontracts issued under a prime contract that contains FAR 52.203-7
   

Penalties

The Act 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 who employee, subcontractor or subcontractor employee provides, accepts, or charges a kickback.
 

Applies To

All University employees, particularly any persons in a position to effect buying decisions made in connection with a contract or action entered into with and supported by the federal government.
 

Contacts

Director of Purchasing and Procurement
Director of University Risk and Compliance

All known or suspected infraction must be reported via the "Fraud and Abuse Hotline," to the Office of Purchasing, or to the Director of University Risk and Compliance or to the University General Counsel.